Pay gap may pay off for Jakarta
Factory workers in the United States will be paid 58 times those in Indonesia in five years, according to the Economist Intelligence Unit. If that seems like a big difference, consider this: US wages are 76 times Indonesia's today.
Hourly manufacturing wages in the US will rise 12 percent to $42.82 by 2019, according to the EIU. While Indonesia's wages are forecast to increase at a much faster pace - gaining 48 percent - they would still only be 74 cents an hour in five years. That's way lower than China's $4.79, Vietnam's $3.16 and the Philippines' $3.15.
Indonesia is trying to establish its manufacturing credentials in an increasingly competitive neighborhood, with countries including Vietnam and the Philippines also fighting to woo investors looking for alternatives to a pricier China.