Friday, February 17, 2017

Labour cost in Jakarta is cheaper than in KL

I am doing some renovation work in my office in Jakarta ( actually in Bintaro, about 30km from Jakarta). The wood price is cheaper than KL and the labour cost is about Rp150,000 per day. I was doing renovation in my Bangi house last year and it costs us RM100 ( Rp300,000) per day for labour. So the labour cost is 50% lower than KL labour cost, even though they are Indonesian.
Anybody wants to build a house in Indonesia?
( The picture below is me with wife in Bangi house)
The picture below is my house in jakarta

The minimum salary in Jakarta is about Rp3.3 million. Most employer will give a lower basic salary but will add allowances like food allowance, travel allowance and other allowance so that the final salary is above the minimum salary level. This is for labour group. Life is tough for them. For example the security guard must pay R01,000,000 when they start becoming guard. This is to pay for the uniform and the required accessories. Even the training to become guard ( to get the certificate) must be paid by the guard. Life is tough for them here. The executive will get higher depending on experience.
We plan to add resources in Indonesia this year. We have been getting bigger customers this year. Company with more tan 1,000 staff are start using our product now. I believe the numbers will keep going up in Indonesia. The company is bigger. The numbers are much higher than Malaysia. I will let you know how it goes.


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