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A robust wage campaign in 2013
Jakarta Post, June 4, 2013
The May Day rallies in Indonesia this year were mostly peaceful, large and colorful. Why shouldn’t they be? The previous year’s 2012 campaign for higher wages was spectacularly successful.
Besides very large (close to 50 percent) minimum wage increases for the districts in and around the Greater Jakarta, the government also announced a ban on labor outsourcing in all but five ancillary activities. In regard to minimum wages (MW), the manpower minister encouraged Governor Joko Widodo to accept a compromise between ambit union wage claims and more conservative recommendations of employers. The outcome, a Rp 2.2 million (US$224.38) MW increase, was big by any standards and well above the recommendations of the Provincial Wages Council in Jakarta.
Despite this, some unionists argue that the number of items which make up the KHL (Decent Living Wage Components) should be increased again this year to an expanded 84 items or more. Such a change alone could raise the MW by as much as 15-20 percent next year, even before the rate of inflation is taken into account.
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Indonesian govt will support textile units with incentives
Fibre2Fashion.com, June 4, 2013
The Indonesian Ministry of Industry has assured that the Government will continue to support the country’s textile and apparel industry through fiscal incentives to help it compete in the global market.
The Directorate General of the Manufacturing Industry (BIM), Panngah Susanto, said the textile industries of Indonesia need to raise their competitiveness and increase their efficiency in comparison with other nations who have adopted advance technologies for production in the textile industry.
The DG BIM of Indonesia was speaking at an exhibition organized by the Indonesian ministries to promote the locally produced textiles and apparels.
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2,280 child workers in W.Java sent back to schools
Jakarta Post, June 5, 2013
As many as 2,280 child workers from 15 regencies/municipalities in West Java have been removed from their work places and sent back to schools through the Family Empowerment Program (PPA-PKH).
“There should be no more business activity that involves child workers. Once more, we call on and will monitor business players to not use child workers anymore,” said Manpower and Transmigration Minister Muhaimin Iskandar on Wednesday as quoted by Antara news agency.
He said any companies found to have such violations would face sanctions.
The child workers removed from their jobs are being accommodated in a shelter where they will receive counseling for four months. A monthly stipend of Rp 250,000 (US$25.5) will be provided for each child during the counseling period.
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Fuel-price hike won’t affect industrial growth
Jakarta Post, June 4, 2013
The government says that industrial growth for this year remains on track despite the planned increase in the prices of subsidized fuel later this month.
Industry Ministry secretary-general Ansari Bukhari said the manufacturing sector would not be affected because companies involved in industrial activities were already banned from using subsidized fuel.
“The fuel-price rise will not affect production costs as the local industry already uses non-subsidized fuel,” Ansari said.
Higher fuel prices would push up transportation costs slightly, thereby contributing a minor increase to total production costs, Anshari added.
The government is due to increase the price of subsidized Premium gasoline by Rp 2,000 (US 20 cents) to Rp 6,500 per liter and the price of diesel by Rp 1,000 to Rp 5,500 this month once it secures approval from the House of Representatives.
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ILO Decries Growing Inequality in Rich Countries
Jakarta Globe, June 3, 2013
Inequality is on the rise in most advanced economies, the International Labor Organization lamented on Monday, decrying surging executive compensation and large companies hording profits rather than investing.
The world economy is slowly recovering from the global financial crisis that set in in 2008, with most developing and emerging economies showing rises in employment and a narrowing of income inequalities, the ILO said in its annual World of Work Report.
But although large companies in developed countries have seen their profits bounce back, the story there is quite different: investments are slumping and inequalities are growing.
Between 2010 and 2011, income inequalities increased in 14 of the 26 advanced economies studied, including in France, Denmark, Spain and the United States, the report showed.
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Indonesian govt pledges maximum efforts to meet 6.2 pct growth target
Antara News, June 4, 2013
Jakarta (ANTARA News) - The government has pledged to take maximum efforts to meet the 6.2 percent growth target set for the draft revised 2013 budget.
"Efforts will be taken by maintaining the current investment level or even increasing it by easing licensing procedures and accelerating spending," finance minister Chatib Basri at a meeting with the House of Representatives` Budget Committee here on Tuesday.
The meeting was also attended by central bank governor Agus Martowardojo, national development planning minister/head of the National Development Planning Board, Armida Alisjahbana and deputy finance minister Mahendra Siregar.
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Indonesia prioritizing nine industries in ASEAN market
Antara News, June 8, 2013
Bandung, West Java (ANTARA News) - The Government of Indonesia is prioritizing nine industrial sectors to be developed in ASEAN market in the run up to the ASEAN Economic Community 2015 (AEC 2015), Trade Minister MS Hidayat said here on Saturday.
"AEC 2015 will be a pivotal moment for Indonesia to face opportunity as well as challenge. In preparation for the AEC 2015, the government is prioritizing nine industrial sectors for the ASEAN market," the minister said.
According to Hidayat, the nine industrial sectors to be developed are agro-based industry such as CPO, cocoa and rubber; fish processing industry, TPT (Textile and Textile Products), footwear, leather and leather products, furniture industry, drink and beverage industry, fertilizer and petrochemical industry, machinery, and basic steel industry.
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