Retailers protest excessive minimal wage, threaten to change to machines

Retailers are strongly protesting Jakarta Governor Anies Baswedan’s choice to growth the minimal wage for retail staff to Rp 4.29 million (US$306.28) per month, upper than the city's minimal wage of Rp 3.94 million.

The choice was stipulated in Gubernatorial Regulation No. 6/2019 at the provincial sectoral minimal wage. Article 2 of the regulation prohibits employers from paying their staff a wage it is decrease than the regulated minimal wage.

Association of Indonesian Retailers (Aprindo) deputy chairman Tatum Rahanta referred to as at the Jakarta administration to be extra cautious in making decisions on wages.

“Retail is a labor-intensive trade that employs huge numbers of unskilled workers. Therefore, we desire to meet [with the governor] to clarify everything,” Tatum stated in Jakarta on Wednesday as quoted with the aid of means of kontan.co.id If the metropolis insisted on defending its decision, he added, outlets would possibly have to put off staff and update them with automated machines to make trade extra cost-efficient.

“We are for the reason that modernizing our operations with the aid of means of replacing the staff with automated machines. We will scale back our quantity of staff and update them with technology. It may be extra efficient,” he added.

He explained that, for convenience stores, outlets needed to allocate 30 to 40 percentage in their sales for wages, whereas for supermarkets and branch stores, the percentage was typically higher. (bbn)

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