Hundreds of companies will be exempt from paying their employees the new minimum wage to prevent bankruptcy, the manpower and transmigration minister said on Thursday.
“There are 941 companies requesting the delay of the minimum wage increase, we will grant about 80 percent of them, but please note that the delay was needed as a logical alternative rather than closing down those companies,” said Muhaimin Iskandar, the manpower and transmigration minister.
The announcement was made just a day after hundreds of workers demonstrated in Jakarta to demand the government enforce the minimum wage increase which was announced at the end of last year.
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