TEMPO.CO, Jakarta - The Indonesian Employers Association (Apindo) said businessmen are frustrated due to the constant labor's demonstration to demand increase in minimum wage. As a result, business investment becomes reluctant.
"Businessmen are finding a way out through rationalization, looking for more feasible business location and replacing labors with machines," Apindo National Leadership Council General Secretary Suryadi Sasmita said today.
According to him, businessmen are having a dilemma with the demand for wage increase. "If factory relocation is needed, then businessman must first buy land and machines," Suryadi said. Other than that, in order to relocate factories, businessmen must pay severance for all laid-off workers.
Suryadi said there should be a clear wage system for workers in each education qualification. "It is not fair for workers with elementary school education to receive higher salary than the ones with college degree," he said.