Indonesian vice president backs labour wage hike
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Indonesian Vice President Boediono has thrown his support behind wage increase demands by Indonesian labor unions, which have intensified in the last few weeks.
“Improvement in the welfare of our working population is one of the government’s top priorities,” Boediono said in his keynote speech during the first Indonesia Investment Summit in Jakarta on Tuesday.
At least six provinces in the country have agreed to increase the regional minimum wage for 2013, with 27 others expected to follow suit, following strikes and protests by labour unions throughout the country.
Boediono urged businessmen and prospective investors to understand the labour movement’s demands for better pay and work conditions, which he argued as the fruit of the country’s maturing democracy.
“We all should respect it [the labour movement] accordingly,” he said.
Boediono described investors and businessmen in the country as “the goose laying the golden eggs”, heaping praise on them for the important role they play in Indonesia’s economic performance and who must be protected for the sake of the economy.
However, he argued that the “goose” should not be the only one enjoying the benefits of the golden eggs.
“Let us also make sure that the benefits are shared fairly among those who have contributed to the laying of the golden eggs,” the vice president said.
“It is in the best interest of all to strike an appropriate balance between ensuring business activities prosper and enhancing the welfare of the working population – one cannot have one without having the other,” he added.
Speaking to investors attending the summit, Boediono reaffirmed the government’s commitment “to systematically improve the business and investment environment” in Indonesia.
The two-day summit, held by the Investment Coordinating Board (BKPM) and the first event of its kind in the nation’s 67-year history, attracted more than 500 participants from 29 countries, exceeding the board’s initial target of 300 participants.
Analysts agreed that, despite slowing down to 6.17 per cent in the third quarter, Indonesia’s economy would continue its 6-plus per cent economic growth in the medium- and long-term due to strong investment growth, as well as its consumption-driven economic model.
