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Minimum Wage Setting Reforms On The Horizon In Indonesia

Source: www.forbes.com
Date: March 19, 2015
Link: www.forbes.com
Author: Heng Shao

When it comes to Indonesia, the message at present is consistent: new investment is on hold due to uncertainty over the country’s minimum wage policy. Last month, a group of foreign investors canceled plans to construct sixteen footwear factories for this very reason. Clearly the sentiment is not shared across industries, however, as foreign direct investment increased by 16.2% year over year in 2014. Consumer goods companies applaud the rising wages as increased spending power means enormous opportunities for future growth. Whether viewed as a regional production base or as one of the world’s largest consumer markets, reforms being made to the country’s wage setting mechanism will be one to watch.

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Indonesia plans to factor productivity into a new system for minimum wage hikes

Source: www.thejakartaglobe.beritasatu.com
Date: March 12, 2015
Link: www.thejakartaglobe.beritasatu.com
Author: Herdaru Purnomo

A new wage system is in discussion in Indonesia. The government plan to develop a system that factor productivity in a new rule to set annual minimum wage. This is an effort to increase workers’ wages without further deteriorating the country’ labor costs competitiveness.

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The Indonesian government raises pension contributions to 8% of monthly salary

Source: www.thejakartaglobe.beritasatu.com
Date: April 9, 2015
Link: www.thejakartaglobe.beritasatu.com
Author: Siprianus Edi Hardum

From 5th of July, the Government of Indonesia is planning to raise the pension contributions from 2% to 8% of an employee’s monthly salary. This new governmental regulation is aimed at refurbishing the country’s pension system.

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Labor Ministry in Cambodia limits overtime among factory workers

Source: www.khmertimeskh.com
Date: March 1, 2015
Link: www.khmertimeskh.com
Author: Xinhua

Due to poor health among factory workers and frequent labor incidents the Labor Ministry in Cambodia has limited overtime among employees to 2 hours per day and maximum 10 hours per week.

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Wage increases in Cambodia do not scare Japanese companies

Source: www.phnompenhpost.com
Date: February 28, 2015
Link: www.phnompenhpost.com
Author: Hor Kimsay

Recently the minimum wage in the garment sector in Cambodia has increased by 27%, from USD 100 to USD 128, and has sparked fear of a decline in foreign direct investment. While Japanese companies need to factor a rising wage bill into their future planning, there are other factors in the global economy that continue to play in favour of Cambodia.

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Cambodia: Labor Laws Fail to Protect Garment Workers

Source: www.hrw.org
Date: March 12, 2015
Link: www.hrw.org
Author: HRW

The Cambodian government is failing to protect garment workers who are producing for international apparel brands from serious labor rights abuses, Human Rights Watch said in a new report.

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