The Indonesian Employers Association (APINDO) believes that improving workers’ living standards cannot rely solely on minimum wage increases but must be supported by skills enhancement.

This statement was made during a meeting with Commission IX of the House of Representatives regarding the discussion of the Labor Bill.

“We cannot rely on workers’ welfare coming from the minimum wage. Worker welfare can emerge when they change jobs, moving from lower-paying jobs to better-paying ones. The question now is, do we have the funds? If the government has LPDP funds amounting to over 100 trillion, why isn’t there funding for workers?”

According to the association, there is currently no special government funding scheme focused on improving the competency of workers already in the workforce.

This condition is seen as an obstacle for workers to move up to higher-paying jobs.

APINDO proposes that the government allocate a special budget for workforce training.

“We propose from APINDO that there must be funds for training workers, especially those already in the workforce. So they don’t enter work and retire doing the same job without any change,” the statement said.

Furthermore, APINDO also highlighted the disparity in minimum wages between regions, which is seen as potentially encouraging labor migration to areas with higher wages.

“Therefore, we hope there will be a zoning system in the future. So major cities would be Zone A, with wages ranging from a certain amount to another, then Zone B, Zone C, Zone D.”

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Indonesian Employers Association (APINDO)

The Indonesian Employers Association (APINDO) is a national organization founded in 1952 to represent the interests of businesses and employers in Indonesia. It plays a key role in national tripartite dialogues with the government and labor unions, particularly in shaping labor policies, industrial relations, and economic development strategies.

Commission IX of the House of Representatives

Commission IX of the House of Representatives of Indonesia is a permanent parliamentary committee responsible for overseeing government affairs related to population, health, labor, and transmigration. It was established as part of the legislative committee system to scrutinize and draft legislation, conduct oversight, and hold hearings within its specific policy areas. Its history is tied to the structure of Indonesia’s modern democratic legislature, evolving to address key social and human development issues in the nation.

Labor Bill

“Labor Bill” is not a widely recognized specific place or cultural site. It is likely a reference to a piece of legislation, such as a proposed or enacted law concerning workers’ rights (e.g., a “Labor Bill of Rights”). Without a specific geographic or cultural context, it cannot be summarized as a location. If referring to a law, its history would involve the political and social movements that led to its proposal and passage.

LPDP funds

LPDP (Lembaga Pengelola Dana Pendidikan) is an Indonesian government institution established in 2012 to manage an endowment fund for financing domestic and international scholarships. Its primary mission is to develop the nation’s human resources by supporting advanced education for future leaders and professionals, thereby contributing to Indonesia’s long-term development goals.