Key insights and market outlook
Indonesian labor unions, led by Konfederasi Serikat Pekerja Indonesia (KSPI), are threatening further protests on January 15, 2026, after their demands for a higher Jakarta provincial minimum wage were not met. The unions are demanding an increase to Rp 5.89 million from the current Rp 5.73 million. The protests will focus on multiple issues including minimum wage, labor laws, and regional governance.
The Konfederasi Serikat Pekerja Indonesia (KSPI) has expressed strong dissatisfaction with the recently announced Jakarta provincial minimum wage of Rp 5.73 million. Led by President Said Iqbal, the union demands that the wage be increased to Rp 5.89 million, arguing that the current amount is insufficient to meet the high cost of living in Jakarta.
The labor unions are planning to stage protests on January 15, 2026, with participants expected to gather in front of the DPR RI building and the Ministry of Manpower. The protests will address four main issues:
Said Iqbal criticized the current minimum wage, stating that Jakarta, being a city with many wealthy individuals, should not have such a low minimum wage. He referenced World Bank data indicating Jakarta's high cost of living, suggesting that the governor should not be constrained by existing regulations in setting the wage.
The protests highlight the ongoing tension between labor unions and government policies regarding wages and labor rights. The outcome of these protests could potentially influence future wage decisions and labor policies in Indonesia.
Labor Union Protests
Minimum Wage Dispute
Potential Labor Unrest