Minister Airlangga: Investors Do not Need to Worry to Put Capital in Indonesia

By : Hariyanto And Aldi Firhand. A | Thursday, November 02 2017 - 18:40 IWST

Menteri Perindusterian Airlangga Hartarto
Menteri Perindusterian Airlangga Hartarto

INDUSTRY.co.id - Jakarta - The Minister of Industry of Airlangga Hartarto asked investors not to worry about investing their capital or expanding their business in Indonesia, although it will face the political year in 2018.

Many overseas companies that have survived 30 to 40 years remain calm doing business, said Minister of Industry Airlangga Hartarto when found in Jakarta, Thursday (2/11/2017).

Airlangga added that whatever happens in politics later, the government will provide protection for industry players not to impede their interest in building factories or making Indonesia a production base to support the global supply chain. "Indonesia has become a mature country in democracy," he said.

The Minister of Airlangga also appealed to the manufacturing entrepreneurs not to worry about the increase in Provincial Minimum Wage (UMP) in 2018 which has been set at 8.71 percent. This quantity is the sum of economic growth and inflation nationally.

However, the Minister of Industry admitted that the increase in UMP will affect the industrial sector, especially on the production or operational costs. For that, the effort that needs to be done by the company is to make efficiency.

Therefore, Airlangga emphasized that there should be compensation given to the industry to cover the surge in costs due to the rise of UMP. "There should be compensation with other factors, for example with cheaper energy costs and a more effective logistics system," he said.

Regarding the increase of UMP DKI 2018 which reached Rp3.648.035, according to him, not too have an effect on to the performance of manufacturing sector as a whole. Therefore, the growing industries in DKI Jakarta more in the service sector. In DKI more services. If the industrial area is more outside of Jakarta. The increase (UMP) is already above economic growth and inflation, "he concluded.

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