Indonesian Business Community Raises Concerns Over Planned UMP Protests

Business Certainty at Risk

The Indonesian business community, represented by Kadin DKI Jakarta, has voiced strong objections to planned protests by labor unions demanding higher provincial minimum wage (UMP) for 2026. Chairman Diana Dewi emphasized that such actions could significantly disrupt business certainty in Indonesia, particularly at a time when both domestic and global economic conditions remain volatile.

Economic Implications

Diana Dewi highlighted that the business community is already operating under challenging circumstances due to fluctuating economic conditions. She warned that if businesses perceive no clear path for significant growth, such protests could further deter investment and hinder economic expansion. The business community is particularly concerned about the potential negative impact on investment and job creation.

Interdependence of Business and Labor

Kadin's leadership emphasized the intrinsic link between business sustainability and worker welfare. Diana Dewi pointed out that business certainty is crucial for workers as it directly affects companies' ability to expand their operations and provide better compensation packages. She stressed that any obstacles to business operations would ultimately harm workers, as companies would be less capable of performing business expansions.

Call for Balanced Approach

The business community is urging policymakers to consider the long-term implications of wage policies on overall economic stability. Diana Dewi suggested that while workers' welfare is important, it should be balanced against the need for business sustainability. She emphasized that workers and businesses are natural partners in economic development and that decisions should not be driven by short-term political considerations.