The President of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal asked for a 13% increase in the minimum wage in 2023. The demand refers to inflation expectations in 2023 of 7-8% with a projected economic growth of 4.8%. If you add up, the two numbers total 11.8%. KSPI, said Iqbal, asked for an increase by rounding the figure to 13%. Responding to the demand, the Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta said the 13% increase would be very burdensome for the domestic textile and textile products (TPT) sector.

In fact, according to Redma, currently the national textile industry is facing conditions such as during the peak period of the Covid-19 pandemic. Where, the stock at the factory began to accumulate to the point of having to lay off employees.

"We have not thought about how much (wages) should be raised next year. Now we are thinking not to layoffs, how many percent more machines must be reduced in capacity. Because there are a lot of stock now," said Redma, Tuesday (11/10/2022).

"But, if we have to go up 13%, how about that. Our current condition is bad. Indeed, the 1st and 2nd quarters were good, but starting from the 3rd quarter, it really dropped. And, there seems to be no sign of improvement in the next 1-2 months if look at the conditions in the world," added Redma.

Redma said the domestic textile industry was hit by the many cancellations and cuts in export orders. Meanwhile, the domestic market also did not help much because purchasing power was still weak.

"Perhaps, if commodity prices improve, there can be an improvement in the domestic market in early 2023. But, in terms of exports, it seems that there are no signs. So, this is the condition like yesterday's Covid," he said.

"Our homework now is how to maintain the workforce. There should be no layoffs. Indeed, now many have laid off because production has fallen, some are up to 50 percent," said Redma.

Therefore, he added, the industry, especially the national textile sector, would not be able to meet the demands for a 13 percent increase in wages next year.

"It will be very burdensome. And, because of Covid yesterday, now the company and employees understand each other. Due to yesterday's experience, some were only paid 30% of the salary, some were laid off. For them it is important to work now. We haven't seen any signs -signs that conditions will improve now," concluded Redma.