Mr.. Mike Kim, from International Business, Binus University International UG program presented his paper “To relocate or not to relocate: A case study of Korean garment manufacturing firm in Indonesia” at the 5th IMHA Conference at Jakarta, Indonesia on September 04, 2018

The yearly increase in minimum wages, as mandated by the Indonesian government, has been one of the critical factors reducing profit for the manufacturing industry. In this paper, he investigated the case of one garment manufacturing company as it contemplates the idea of relocating its operations within Indonesia. Given the fact that Indonesia offers an attractive market and a stable investment climate, the decision to relocate the business will depend largely on regional minimum wage comparisons in the country. This study hinges on the neo-classical theory of relocation decision-making, which suggests that profit maximization is the main driver for such a decision.