Indonesian Labor Union Advocates for More Comprehensive Minimum Wage Calculation

Call for Revised Formula in 2026 UMP Determination

The Indonesian Workers Confederation (KSBSI) is pressing the government to reconsider the formula used for calculating the 2026 Provincial Minimum Wage (UMP). According to KSBSI President Elly Rosita Silaban, the current method, which primarily relies on macroeconomic indicators such as inflation and economic growth, is insufficient.

Emphasis on Decent Living Standards

Silaban emphasized that the minimum wage should be determined based on the true cost of living (KHL), ensuring that workers can maintain a decent standard of living with their families. The labor union argues that the current formula, focused on macroeconomic factors, fails to capture the actual needs of workers.

Key Demands from KSBSI

1. Revision of UMP Formula: Incorporate a more comprehensive assessment of living costs
2. Focus on Workers' Welfare: Ensure the minimum wage allows for a decent family life
3. Government Accountability: Encourage the government to prioritize workers' needs over business cost efficiency

The KSBSI's advocacy highlights the ongoing debate between labor unions and the government regarding wage policies in Indonesia. As the government considers the formula for the 2026 UMP, the KSBSI's demands are likely to influence the discussion, potentially leading to a more inclusive and comprehensive wage determination process.