The high cost of labor is not offset by productivity.

JAKARTA, KOMPAS.com – The president of the Indonesian Employers Association (Apindo), Hariyadi Sukamdani, revealed that employers are concerned about the high cost of labor in Indonesia, which is not directly proportional to productivity.

“One of the concerns or concerns of all of us is the high cost of labor that is not balanced with adequate productivity,” he said while giving a speech at a virtual webinar on Friday (09/10/2020).

According to him, even businessmen often complain about this.

“This is what generates complaints from almost all business actors that it is impossible for them to open jobs as we all hope,” he said.

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“This is our common concern when we also see that our workforce turns out that 57 percent are high school graduates and younger,” he added.

On the other hand, Apindo also sees that the achievement of investment income made by the Investment Coordinating Board (BKPM) continues to decline.

“If we look at the BKPM records, there has also been a tremendous contraction in foreign investment, as well as domestic investment, which shows that most of the inbound investment is capital intensive,” he said.

Therefore, it awaits suggestions from other business players to solve the quality problems of workers.

“Of course we hope that the job opportunities that arise are actually doing quality work. To achieve this quality employment, of course, the contributions of the business world must also be considered,” he said.

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