Widjaja said that foreign companies prefer to move their business to countries like Cambodia, Vietnam or Bangladesh where minimum wages are lower than in Indonesia. Moreover, these companies are focused on export markets, not on domestic sales, and therefore moving the production bases to countries with lower wages is logical. Apindo also detects a trend where domestic companies move further away from the cities in West Java toward the borderline with Central Java (such as Majalengka) where regional wages are lower. As these domestic companies sell their products to the local market, they will have no interest to move their business outside Indonesia.

Bahas