Quick Thoughts on the Jakarta Gubenatorial Election

Close followers of Indonesia are tuning in to the final days of the Jakarta governor’s race, most recently in last week’s second televised debate. The topic was bureaucratic reform which is certainly of interest to most foreign companies with a presence in the capital city. The Governor of Jakarta holds the keys to a myriad of sorely needed improvements,…

Investing in Indonesia: Emerging Opportunities With Complex Regulatory Risks

I was recently interviewed by Risk Assistance Network & Exchange (RANE) as part of an expert advisory panel on investor risks specific to the Indonesian market. The truncated version can be found here: http://bit.ly/2a9dYJ6  Any interested in the full interview, can continue reading below. What makes Indonesia attractive for investment? There are a few big draws to Indonesia from…

Meet the new President of the Philippines

On Monday May 9, some 55 million Filipinos will vote to elect their new president, vice-president, senators, and some 18,000 local officials. With a double digit lead over his closest rival, the anti-establishment and defiantly unrefined mayor of Davao City, Rodrigo “Digong” Duterte’s election as the 16th President of the Philippines appears imminent. The business…

Launching our new apparel sourcing tool

Senior sourcing officers at apparel companies with multi-country supply chains face rising costs, erratic policy making and often knotty social and/or political issues. Much of the apparel industry’s supply chain runs through Southeast Asia, which is where our work at Cascade Asia is focused. So we thought it made sense to build a product for…

Indonesia’s 2016 Minimum Wages by Province

The majority of Indonesia’s 34 provinces have announced their 2016 wage increases (included in the chart below). The new wage regulation continues to authorize governors to set minimum wages for their provinces, whether utilizing the national inflation rate method or its permissible substitute, the Decent Living Standard (KHL) index. Governors using the former method raised…

Why political instability is returning to Cambodia

Recent developments in Cambodia merit attention as the country’s political leaders appear to be returning to their respective corners in what would be a lengthy lead-up to the national elections in July 2018. If this is what is happening, collateral damage will include the country’s political stability. In July 2013 Cambodia plunged into a period…

Responses to Indonesia’s new regulation on wages

As part of President Widodo’s fourth economic stimulus package, the government announced the end to the failed tripartite mechanism for negotiating annual adjustments of wages on a regional basis. In its place, the president signed the Government Regulation on Wages (No. 78/2015) ultimately opting for a formula that includes the current year’s inflation (at the…

Vietnam’s 2016 minimum wage: Good or bad?

The country’s National Wage Council voted for a 12.4% increase in minimum wage from next year. The vote came after a meeting between the Vietnam General Confederation of Labor (VGCL) and the Vietnam Chamber of Commerce and Industry (VCCI) failed to reach a consensus. With 14 out of 15 votes in support of the 12.4%…

3 recent developments foreign employers in Indonesia need to understand

On July 1the Social Security Administration Body for Employment (Badan Penyelenggara Jaminan Sosial (BPJS)Ketenagakerjaan), previously known as Jamsostek or the state pension fund, will officially begin providing coverage for occupational accidents, retirement savings and life insurance. However, it is still negotiating with the Indonesian Employers Association (APINDO) over the appropriate amount for pension dues to be…