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Jakarta workers seek 33% rise in minimum pay

But main employer group tells Jokowi such levels would spur job cuts as companies couldn't afford higher labour cost

Published Fri, Oct 31, 2014 · 09:50 PM

Jakarta

INDONESIAN President Joko Widodo's government is walking a tightrope as a new minimum wage is negotiated for Jakarta, seeking to balance a pro-business pledge against promises to help the nation's poor.

Workers in the capital, where Mr Joko was the governor until he won the presidential election this year, are calling for an increase of about a third in the minimum wage in 2015. Such levels would spur job cuts as companies couldn't afford the labour cost, the country's main employer group said.

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