There has been many reports on talent fleeing the respective countries and that there are labour shortage everywhere. Earlier, all those news do not really make sense until I try to put in the value of a talent into someone and gauge his willingness to stay at his/her current pay. In Indonesia at least, it seems that the labour shortage is not going anywhere but up. A fresh computer science graduates skillful in Java, in fact, is paid for 2.5 mil Rp, equivalent to roughly 500 Singapore dollars a month! That's already above average. While, in Singapore, one with similar skill level can expect a pay of 2,500 Singapore dollar a month or even far more. Using Big Mac Index to measure, it'd be really easy to measure how easy it is for talents to run out of Indonesia. Currently, a Big Mac meal costs S$5 to S$6 in Indonesia, which is the same as in Singapore. A pay of S$500 (Rp. 2.5 million) can only purchase 100 burgers (assuming lowest cost). On the other hand, one working in Singapore with S$2,500 can have 416 burgers, 4 times of the Indonesian counterpart!
To add into the argument, a cost of an average bunk (a room without bed and furniture, of 3 m x 3 m) is 500k Rp in Jakarta while one could get a very nice furnished room for <>
Tuesday, May 8, 2007
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