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Home arrow Latest News arrow Textile and Garment Entrepreneurs in West Java Complain of Expensive Labor Wages


				
			
			
Textile and Garment Entrepreneurs in West Java Complain of Expensive Labor Wages PDF Print E-mail
Written by Maizer   
Thursday, 16 May 2019

The increase in wages for workers who have contributed to  growth of West Java's economy lately turned out to be the opposite of textile and garment industry. A number of investors also choose to leave to other areas where production costs are cheaper.

 

Based on data from Apindo and the Manpower and Transmigration Office in the 2015-2018 period, there were 21 companies relocating to other provinces whose wages were lower, such as Central Java. Meanwhile 143 other companies chose to close. From 21 companies that relocated, the main types of industries were garments (48 percent) and textiles (14 percent).

 

The most relocation carried out by textile and garment companies came from Karawang Regency. The Minimum Wage for Regency (UMK) 2019 in Karawang was recorded to reach Rp. 4.23 million, or the highest in West Java.

 

 

"In addition of wage factor, there are also issues of competition in the global market. Countries such as China and Vietnam are their goals," said Head of the Advisory & Economic Development Group of the Bank Indonesia Representative Office of West Java Province.

 

He gave an example that there was one company that chose to leave West Java to move to Vietnam because the wages of workers were cheaper and had productivity of 48 working hours a week, or above the Indonesian average of 40 working hours.

 

The West Java regional government has prepared a number of policies to resolve the MSE problem and weakened manufacturing performance.

 

According to Pribadi, the increase in MSE (District / City Minimum Wage) which amounted to 8.03 percent supported the West Java economy so that it was able to grow by 5.43 percent in the I / 2019 quarter. West Java's economic growth is higher than the national economy which is 5.07 percent.

 
		
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