Minister Demands Labour Cost Not Too High

Jakarta, Sept 10 (Antara) - The increase of labour cost should not be made too high because it may burden companies amid the current economic turmoil, said Indonesian Coordinating Minister for Economy Hatta Rajasa. "Wage increase is necessary, but not too much," Hatta said here on Tuesday. Hatta did not mention the ideal nominal wages increase, but the 50 percent increase as demanded by some workers unions is not realistic. "It is not realistic if the companies are charged an additional 50 percent. It will only make the company weakens and broke which will make everybody loss," said Hatta. Hatta believes that the workers unions in Indonesia must also understand the condition and capacity of the company where they work. "I guess not all unions requested 50 percent increase labor wage. Unions also understand the capacity of our companies," said Hatta. The government, trade unions and the Indonesian Employers Association (Apindo) need to sit down together to discuss the problem of rising labor costs in accordance with the current inflation conditions, Hatta said. "In my opinion, that the plus inflation is the main topic of the discussion. Inflation plus means the wage need to be increased, unlike inflation only which just to maintain their purchasing power," said Hatta. Hatta said that all parties would want to get the best solution related to the rising labor costs, where the company is not burdened but also without ignoring the worker`s welfare. "There is no country in this world who want to give their workers suitable welfare, but in a situation where we are now amid the current economic pressures, companies also are in consolidation. That`s where we need to discuss," said Hatta.