The Indonesian labour unions demand that the provincial minimum wage of Jakarta is increased to IDR 3.7 million (USD330) per month in 2014 and they are VERY serious about it threatening with demonstrations later this week and possible strikes next month. The Indonesian manufacturers around Jakarta are still trying to recover from the previous 44% increase to IDR 2.2 million (USD220) earlier this year. The same applies to other industrial areas across Indonesia but there the increase was limited to about 20%. Based on my personal discussions with our customers they are trying to limit the impact of this year’s salary increase by reducing the workforce, more automation, less over-time and pushing for a higher output per worker. Of course it is true that Indonesia has among the lowest minimum wages in Asia but the productivity is also low (as is the cost of living). So rather than just fighting for higher wages the unions should also ensure that the workforce improves and provides much higher output. Demanding another 50% increase is of course completely unreasonable and will result to lots of industrial unrest.