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Batam UMK 2020 Higher Than Malaysia, Apindo Batam Anxious the Investors will Moving Country

He compared the amount of wages between Batam and several other ASEAN countries from the highest to the low obtained from various sources.

Batam UMK 2020 Higher Than Malaysia, Apindo Batam Anxious the Investors will Moving Country
TRIBUNBATAM.id/ALFANDI SIMAMORA
Chairman of Apindo Batam, Rafki Rasyid 

TRIBUNBATAM.id, BATAM - The Chairperson of the Indonesian Employers' Association (Apindo) of Batam City, Rafki Rasyid rate, in terms of labor costs in Batam is no longer competitive.

He compared the amount of wages between Batam and several other ASEAN countries from the highest to the low obtained from various sources.

With today's exchange rate, the City Minimum Wage (UMK) in the Big City of Thailand is already around Rp 4,667,400. 

Then, if the Batam 2020 UMK is around Rp. 4,130,000, then the Malaysian UMK in 2020 is valued at Rp. 4,082,000, the UMK of the Philippines in 2020 is worth Rp 3,441,000.

Then UMK City of Vietnam in 2020 worth Rp 2,706,294, UMK City of Cambodia worth Rp 2,660,000 and UMK City of Myanmar in 2020 worth Rp 1,441,860.

"If we look at the data above, then in terms of Batam labor wages are no longer competitive," Rafki said, Thursday (10/17/2019) to the Tribun. 

Apindo is worried that with the increase in labor costs in Batam, existing investors will decide to move the businesses to the countries where the wages are still more competitive than Batam. 

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"Especially for footlose industries that pursue low wages and labor-intensive industries that have a large number of employees," he said.

Therefore, according to him, regulators in Batam City must immediately issue a policy that alleviates entrepreneurs in Batam.

Namely by providing the incentives in the form of tax or non-tax incentives. 

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