Indonesian Labor Wages Are Not Clear, Shoe Exports Will Drop By $1 Billion.

The association complained about the unclear regulations on labor wages in several regions, and feared that the export competitiveness of shoe products would be lost due to too high wages.

The association predicts that because of the high wages and the unclear regulations on wages, there will be a potential loss of US $1 billion in exports.

The Eddy Widjanarko, the chairman of the association, predicts that the export of shoes will reach US $5 billion this year, but it will be exported to US $4 billion only by the wage regulations in several regions.

"The main obstacle for shoe operators is related to the implementation of several county / municipal governments.

The Ordinance is not clear. "

He believes that this has always been a local government hastily issued a regulation, mainly the arrangement of labor wages Ordinance, often do not invite entrepreneurs to solve this problem, so that the decision taken to increase the burden of entrepreneurs.

"At ordinary times, they directly formulate a decision without giving advance instructions to entrepreneurs. For example, today's (wage) increase is 30%, and tomorrow's rise is 30%, which has a strong impact on the corporate climate."

He said that the labor regulations were not clear, causing buyers to postpone the purchase of shoes produced by our shoe factories. He explained that wages in some areas were too high, such as Banten.

At present, 60% of the shipment of Indonesian shoe products is from Wan Dan, and the monthly labor allowance of 1 million 680 thousand shield will result in the expansion of factory operating expenses.

Binsar Marpaung, Secretary General of the Indonesian Footwear Association, added that the different rules of local governments have impeded the relocation of shoe factories to China, and they have chosen to invest in areas more relaxed.

Addie added that the association hoped that the relevant departments could solve the problem of labour wages and would like to invite entrepreneurs to discuss the issue.

"Do not associate political issues with economic activities."

He said that too high wages have delayed the construction of new investment in several areas of China. It is estimated that at least 10 enterprises with an investment value of US $100 million will be delayed in China because of this problem. We expect to delay investment and stop the expansion of shoe factories, and the labour force we can not absorb will reach 150 thousand.

Nevertheless, the Ministry of industry is confident that with the number of shoe companies planning to use our country as a production base, the export of shoes will increase by more than 7% this year.

Raymond Bangun, director of the Ministry of industry's basic manufacturing Bureau and textile industry director, confirmed that the quality of shoes produced in China is superior to those produced by many ASEAN countries in particular.

"The export of our shoe products has increased by more than 7%, as many enterprises have pferred orders to China."

He said that at present, several international shoe labels are set up in China, such as Clark (Clark), Timberland, Echo and Fortuna.