The Indonesian Employers Association (Apindo) has proposed a 20 percent increase of provincial minimum wage or UMP in 2014 in effort to balance the inflation that is expected to continue to rise.

"That`s only a benchmark if inflation plus. If it has not happened yet, this should be discussed to get tripartite agreement," said Apindo chairman Sofyan Wanandi here on Friday.

Sofyan said proposal of the 20 percent increase of minimum wage was aimed to take back investment of the labor-intensive enterprises which have been more interested in investing abroad so far due to their objections by the amount of domestic UMP.