Collaboration of FEM IPB’ Lecturer and Student Propose Salary and Worker’ Motivation Increase Delivering First Winner of Call of National Paper
Collaboration between students and lecturers of Bogor Agricultural University (IPB) won 1st place in the Call of Papers at the National Seminar and Congress of ISEI XX held by the Indonesian Association of Economics Scholars in Bandung earlier last month. The collaboration team consists of Dr. Muhammad Findi, M.E. as a lecturer at the Faculty of Economics and Management (FEM) IPB with Muhammad Ali Nur Sidiq, S.E. as an alumnus of IPB FEM as well as a student of IPB's Master of Economics program.
In the activity that carries the theme ‘’ Strengthening Indonesia's Economic Productivity: Harmonization of the Formal and Informal Sectors', Dr. Findi and the team raised the theme of the influence of workers' wage levels on achievement in the formal sector in Jakarta.
"In order to increase national income, it needs superior human resource support. In general, the hypothesis raised is that wage increases will reduce investment, but this does not apply in some areas that have labor skills such as Jakarta. Our results show that wage and investment levels are positively related, where the driving factor is to increase worker productivity, namely increasing wages can increase investment. So if the industry that raises the wage level workers will not feel charged, it will be profitable because workers feel motivated and encourage an increase in industrial output and have an impact on investor interest in raising their investment. This result is quite satisfying for workers, industry, and investors, '' explained Dr. Findi.
The impact of an increase in workers' wages is not only felt by business owners and investors but also affects the government in increasing employment so that it will reduce unemployment in Indonesia.
"My advice is that investors need to be given certainty by employers regarding licensing and the provision of quality workers. In addition, regulations related to workers' wages carried out by the government need not hesitate to raise the standard of increasingly better and better wages in all regions in Indonesia to motivate workers as well as open new jobs with an increased investment in the region, "explained Dr. Findi.
Dr. Findi hopes that this collaboration team can become a new inspiration to contribute to the progress of Indonesia. We also hope that we can bring the name of IPB as an educational institution that is able to contribute to the thinking of the national economy, "hoped Dr. Findi.
