Chairman of the Nation Economic Committee (KEN), Chairul Tanjung, agreed on increased of worker’s pay as long as it is accompanied with productivity increase. “The problem is not in the nominal value, but the productivity as pay should be based on output”, he said after the Economy Outlook 2013 event in Jakarta, Monday (12/10).
Chairul explained that currently there is an economic transformation process based on low-pay workers-based and natural resource-based economy to economy based on human resources with high productivity, processing skill including technology skill. “So, the problem is not the pay, but the productivity. People did not care if worker’s pay increase 40%, what they care is whether productivity could increase by more than 40%”, he said.
He took an example that a person is paid Rp 100 to make a pair of shoe. If this person could make 50 pairs, he is paid with Rp 5,000. “So, a person is paid based on productivity. Therefore there will be no problem”, Chairul said. He said that in this case there are no parties who force their intentions, whether the workers or the employers. Just find the best solution”, he said.
Business News - December 12, 2012