Indonesian Employers Association (Apindo) chairman Sofjan Wanandi said that at least 500,000 workers in about 1,500 companies across the country might lose their jobs in March as the companies were no longer able to pay their workers in accordance with the new minimum wages.
“I think half a million is the smallest figure we are going to see next month and I am afraid the layoffs will be done secretly. Most of [the layoffs] will occur in Jakarta, Banten and West Java,” Sofjan told The Jakarta Post on the sidelines of an Apindo National Leadership Council (DPN) gathering in Jakarta.
The affected workers mostly work in the food and beverage, tobacco, textile, footwear and leather, toys and furniture industries.
At least 26 provinces have set their respective minimum wages for this year, with Bogor, West Java making the highest increase of 70.5 percent to Rp 2 million (US$208), from Rp 1.17 million in 2012.
Chosen excerpts by Job Market Monitor from