Indonesian Labor Union Calls for Substantial Minimum Wage Increase

KASBI Criticizes Recent Provincial Wage Hikes

The Indonesian Labor Union Alliance (KASBI) has strongly criticized the recent provincial minimum wage (UMP) increases, arguing that the adjustments fall far short of addressing the pressing issue of wage disparity. While nine provinces have raised their minimum wages between December 23 and the previous month, with increases ranging from 6.02% to 7.90%, KASBI is demanding a more substantial 40% hike.

Recent Provincial Minimum Wage Adjustments

The recent UMP adjustments, while welcomed by some, have been deemed inadequate by labor unions. The increases vary by province: Sumatera Utara saw a 7.90% rise to Rp 3.2 million, Sumatra Barat 6.30% to Rp 3.1 million, Sumatera Selatan 7.10% to Rp 3.6 million, and Sulawesi Utara 6.02% to Rp 4 million. These changes are in line with Government Regulation Number 49/2025 on Employment.

Labor Union's Demands and Rationale

KASBI's demand for a 40% increase is rooted in the belief that the current adjustments do not effectively address the existing wage disparities. The labor union argues that more significant wage hikes are necessary to improve the living standards of workers and reduce income inequality. This stance reflects the ongoing debate between labor unions and policymakers regarding the appropriate level of minimum wage adjustments.