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vast majority of Indonesia’s working population has no guarantee of minimum wage and protection

from the government.

People are forced to go informal because manufacturing in Indonesia is hamstrung by decrepit


infrastructure, rigid labor laws and protectionist policies that make it difficult for its factories to be
competitive, according to the magazine.

Indonesia has increased its social spending, the magazine reported, adding that the government has
bold plans to introduce universal health care by 2019.

However, government spending is still skewed towards the rich, with about 20 percent of the central
government’s budget, or 282 trillion rupiah ($24.5 billion) this year, going on energy subsidies. Cheap
gasoline benefits the rich, who are its biggest consumers.

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