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
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
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
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
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
Minimum Wage Announcement Delay
Labor Protests Suspension
Wage Formula Discussion