APO Secretary-General and Indonesian Vice Minister of Finance Exchange Ideas on Enhancing Labor Productivity

Asian Productivity Organization (APO) Secretary-General Dr. Indra Singawinata received Indonesian Vice Minister of Finance Dr. Suahasil Nazara and delegates at the APO Secretariat in Tokyo on 2 December 2022 to exchange ideas on increasing prosperity through labor productivity enhancement in APO members. Vice Minister Suahasil expressed interest in strengthening productivity initiatives through fiscal policy measures.

 

(Left to Right) Director General of Budget Financing and Risk Management Ministry of Finance Dr. Suminto, Indonesian Vice Minister of Finance Dr. Suahasil Nazara, APO Secretary-General Dr. Indra P. Singawinata, and Special Adviser to the Minister of Finance Dr. Titik Anas discussing labor productivity enhancement.

“It is high time for Indonesia and other developing countries to reflect productivity performance in their minimum wage formulas, although this could be sensitive,” stated the Vice Minister. He acknowledged that while labor market policy could be used as a tool for the social protection of workers, its impact on the improvement of productivity would require in-depth investigation. Vice Minister Suahasil suggested that, although such a policy might not fit all countries, the APO could study this pressing issue and disseminate the results to its members as part of efforts for more inclusive productivity improvement.

The Vice Minister emphasized that productivity improvement should be considered from a long-term perspective, requiring well-planned, consistent, continuous policy interventions. “The APO is grateful for the sharing of ideas and looking forward to future collaboration on them for the benefit of its members,” responded Secretary-General Dr. Indra in concluding the discussion.