Jakarta - Industry Minister Ms Hidayat said that correct attitude must be taken regarding the idea to postpone workers' wage increases in an effort to avoid lay-offs. "IF we fail to take the correct attitude I am afraid there would be lay-offs of workers in April. I hope it would not be a massive layoff," the minister said. He said that layoffs could take place. Most labor-intensive companies had asked for postponement of the wage salary increase by about 43 percent because they really unable to pay such an increase. "I have talked to the Minister of Manpower and Transmigration over this matter. I hope that the requests by 1,312 firms to postpone the wage increase would be granted, though not all of the requests," the minister said. He said that the government would regulate the transition period through a minister's regulation. The Indonesian Employers Association (Apindo) has claimed that a total of 1,312 companies had asked for postponement of the salary increase. Apindo chairman Sofjan Wanandi said there would be a big number of workers to be laid off in connection with the increase in labor wages. "The number of those who would certainly be laid off reach 15 thousand and in the coming one to two months their number would increase. It could even reach hundreds of thousands if we do net restrain ourselves," he said on Thursday He said that the increase by 40 to 70 percent of minimum wages has created unrest among businesses and many factories are facing closure if the wage increase decision was not postponed. A total of 1,312 firms have threatened to stop operations. In West Java alone, 384 firms have also threatened to close business. In Jakarta, 378 firms have also warned to stop operations. About 976,382 workers are now facing lay-offs. (*)


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