Jakarta governor's 5% minimum wage hike spurs business backlash

Indonesian employers threaten legal action after Baswedan overrides legally set increase

20211228N Jakarta train station

Commuters walk during rush hour at a train station in Jakarta. © Reuters

KOYA JIBIKI, Nikkei staff writer

JAKARTA --  A decision by Jakarta's governor to raise the region's minimum wage by 5.1% -- more than five times the increase set by law -- has met with resistance from business groups that warn of headwinds to foreign investment.

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