U.S. factory workers will be paid 58 times those in Indonesia in 5 years, according to the Economist Intelligence Unit. If that seems like a big difference, consider this: U.S. wages are 76 times Indonesia’s today.
Hourly manufacturing wages in the U.S. will rise 12% 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’s $3.15.
Indonesia’s government has faced pressure to raise wages. Thousands of workers protested in Jakarta in December as part of a nationwide strike for higher pay after President Joko Widodo raised fuel prices.
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