Jakarta – The Indonesian Employers' Association (Apindo) has said that at least 10,000 workers could lose their jobs when the Jakarta administration implements the new minimum wage at Rp 2.2 million (US$228) next year.

Apindo wages and social security division head Hariyadi Sukamdani said Tuesday that the 44 percent increase would hit employers hard.

"Until now, 100 garment companies plann to shut down their businesses due to the raise," he told tempo.co. He added that shoe manufacturers had also considered the same action.

Labor-intensive companies, owned by Korean and Japanese businesses, located at Kawasan Berikat Nusantara in North Jakarta have threatened about theredundancies if the new wage is implemented.

Hariyadi, who is also vice chairman of the Indonesians Chambers of Commerce and Industry (Kadin), said that the Japanese and Korean Ambassadors to Indonesia had voiced their concern over the new policy to the Apindo and Kadin. (han/lfr)