Avoid Investing in West Java, Indonesian Employers Association Tells Foreign Firms Keyko Ranti Ramadhani | January 11, 2012
A massive wildcat strike involving thousands of workers in Bekasi on outskirts of Jakarta on Wednesday will disrupt the investment climate and business in West Java, the Indonesian Employers Association says. Sofjan Wanandi, chairman of the assocation, known as Apindo, said it was taking legal action to block moves by the Bekasi administration to increase the minimum wage by as much as 30 percent. The strike outside the Industri Kawasan MM2100 industrial estate has blocked traffic on the Cibitung Toll Road linking Jakarta and the satellite city. The estate, which houses a number of foreign firms housing thousands of workers, is closed. Sofjan said investors would think twice about investing in West Java, "particularly Bekasi." "I recommend that they invest in Central Java or East Java," he said. He said the wage increase, already approved by the governor, was good news for workers but spelled potential disaster for employers. "All companies in the industrial area object to the minimum wage increase because it is considered to be a steep increase," he said.
