Indonesian Labor Unions Suspend Protests as Wage Talks Continue
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PublishedDec 5
Sources2 verified

Indonesian Labor Unions Suspend Protests as Wage Talks Continue

AnalisaHub Editorial·December 5, 2025
Executive Summary
01

Executive Summary

Key insights and market outlook

Indonesian labor unions have suspended their planned protests after the government delayed announcing the 2026 minimum wage increase. The Confederation of Indonesian Workers Unions (KSPI) and Labor Party had planned demonstrations on November 24, 2025, but cancelled them following the government's decision to postpone the announcement 2

. Business groups are awaiting the government's final decision on the wage formula.

Full Analysis
02

Deep Dive Analysis

Indonesian Labor Unions Suspend Protests as Wage Talks Continue

Background on Minimum Wage Discussions

The Indonesian government has delayed announcing the 2026 minimum wage increase, prompting labor unions to suspend their planned protests. The Confederation of Indonesian Workers Unions (KSPI) and Labor Party had originally planned to hold demonstrations on November 24, 2025 2

.

Business Community's Stance

The Indonesian Employers Association (APINDO) is awaiting the government's final decision on the wage formula. APINDO Chair, Shinta Kamdani, stated that they will release an official statement on the matter 1

.

Planned Labor Actions

While the immediate protests have been called off, labor unions have warned of future actions if their demands are not met. These include potential strikes involving up to 5 million workers across Indonesia 2

.

Wage Formula Expectations

APINDO expects the government to use a similar wage formula as in the previous year, based on Government Regulation Number 51/2023. However, there may be adjustments to certain parameters in the formula 1

.

Original Sources

Story Info

Published
1 month ago
Read Time
8 min
Sources
2 verified

Topics Covered

Labor RelationsMinimum Wage PolicyIndustrial Relations

Key Events

1

Minimum Wage Announcement Delay

2

Labor Protests Suspension

3

Wage Formula Discussion

Timeline from 2 verified sources