Indonesian Labor Unions Threaten National Strike Over Proposed Wage Regulations

Background of the Labor Dispute

The Indonesian Confederation of Labor Unions (KSPI) is planning a massive national strike involving approximately 5 million workers in response to the government's proposed wage regulations for 2026. The labor union strongly opposes the draft government regulation (RPP) on wages currently being prepared by the government.

Key Issues with the Proposed Regulation

KSPI President Said Iqbal, who is also the President of the Labor Party, criticized the RPP, stating that it contains significant substantive flaws and was not properly deliberated with labor representatives. Iqbal claimed that the wage-setting process has been dominated by the Indonesian Employers' Association (Apindo), with labor forums such as the Tripartite National Council merely serving as venues for the government to socialize its pre-determined ideas.

Potential Impact of the Labor Action

The planned national strike has the potential to significantly disrupt various sectors of the economy, given the large number of workers involved. The action underscores the deep-seated tensions between labor unions and the government regarding wage policies and labor rights.

Government-Labor Relations

The dispute highlights the challenges in achieving consensus between the government and labor unions on wage regulations. The labor unions' dissatisfaction with the current draft regulation reflects broader concerns about wage stagnation and the need for more inclusive decision-making processes in labor policy formulation.