Transforming work in Indonesia: The power of digital wages

BANDUNG, West Java, Indonesia (ILO News) - To improve the efficiency of its herbal drink production, Pretty Aprian, Business Owner and Retno W. Agustin, Marketing Manager of CV Salwa Production in Bandung, West Java, decided to digitize their payroll system last year. By transitioning to digital wage payments, they aimed to streamline salary disbursement while establishing reliable financial records to better track payments and resolve discrepancies.

Before deciding to transition from cash to digital wage payments, we consulted and discussed this with our workers.

Retno W. Agustin, Marketing Manager of CV Salwa Productio

The first step was selecting the most suitable financial service provider to support the shift. To ensure a smooth transition, the company actively consulted and engaged with workers throughout the process. Retno emphasized the importance of this approach: “Before deciding to transition from cash to digital wage payments, we consulted and discussed this with our workers.”

From the outset, workers were involved and supported. They received guidance on using mobile banking services, enabling them to easily check their account balances. They were also introduced to the importance of payroll record-keeping.

“With wage digitization, the company provides workers with payslips as proof that salaries have been paid and received according to the agreed amount,” Retno explained.

© Ariel Prananda/ILO

© Ariel Prananda/ILO

The transition has been positively received. Dika, a digital marketing staff member, noted that digital payments offer greater transparency and clarity, as records of working days, leave, and wages are properly documented. “Digital payslips are also useful when we need access to credit, such as for a vehicle loan or other purposes. The format is accessible and easy to use,” he said.

I am glad that wages are now transferred through the bank. It’s quick, and I don’t have to wait.

Dede, a production staff member

Beyond efficiency, digital wages have strengthened workers’ sense of empowerment and financial resilience. Pretty has also been raising awareness among workers on how to better manage their earnings.

“We continue to educate our workers on how to manage their salaries effectively,” said Pretty.

“The more we understand digital payments, the more secure our money becomes. Digitalization is what we need,” concluded Deka.