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Indonesia’s Industry Minister warned last week that the country could be hit by massive job losses this year if a recent rise in the minimum regional wage for labour-intensive industries will not be postponed, Asia One reports.
The job cuts would mainly impact those in the food and beverage, tobacco, textile, footwear and leather, toy and furniture sectors. Up to 900,000 worker face the risk of becoming unemployment, said the Minister, Mohamad Suleman Hidayat.
“Businesses cannot bear the costs incurred by the new minimum wage, which has increased by an average of 43%,” he said.