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Indonesia businesses brace for minimum wage hikes

Unions agitating for increases despite sluggish economy and underemployed workers

A Jakarta think tank says the economy needs to grow nearly 10 per cent a year to absorb the job seekers, but weak infrastructure, trade and labour laws are curbing growth.


INDONESIAN businesses are bracing themselves for another year of massive rises in the minimum wage - already among the highest in Asia - as labour unions in Jakarta stage rallies ahead of a hike in the price of subsidised fuel.

Under Indonesian law, local officials have the