TEMPO.CO, Jakarta - Chief economist at the Danareksa Research Institute, Purbaya Yudhi Sadewa, has called on the government to be firm about their approval of the minimum wage hikes proposed by laborers as it will have an impact on Indonesia’s investment climate.
These demands, he added, will be taken into consideration by investors before investing in the nation. The decision may affect the investment plans of new foreign investors or those who have already invested in the nation.
"The government must not be influenced by the laborers, they must also make a clear calculation," said Purbaya on Monday.
Purbaya said that demanding higher wages was reasonable, but the amount must be appropriate and not cause regions and industries to suffer losses.
FAIZ NASHRILLAH | DINDA LEO LISTY