Indonesian Labor Unions Plan Protest Over Minimum Wage Policy

Dissatisfaction with Recent Minimum Wage Adjustments

The Indonesian Workers' Confederation (KSPI) has announced plans to stage a protest at the State Palace in response to the recent minimum wage adjustments in DKI Jakarta and West Java. The union strongly rejects the current minimum wage policy, deeming it insufficient to meet the Living Needs Index (KHL). KSPI President, Said Iqbal, emphasized that the workers' stance in DKI Jakarta remains firm, demanding that the Governor revises the 2026 minimum wage to 100% of KHL, amounting to approximately Rp 5.89 million.

Criticism of Current Minimum Wage Policy

The labor union criticizes the current policy as not reflecting a decent standard of living, damaging purchasing power, and being in conflict with Government Regulation No. 49/2025 on Employment. This regulation is cited as the legal basis for their demand for a substantial increase in the minimum wage. The union argues that the current adjustment is inadequate and will further erode the purchasing power of workers in Jakarta.

Economic and Social Implications

The protest highlights the ongoing tension between labor unions and provincial governments over wage policies. The demand for a significant increase in the minimum wage to Rp 5.89 million is not just an economic issue but also a social one, as it reflects the broader struggle of workers to maintain a decent standard of living amidst economic challenges. The outcome of this protest could have implications for labor relations and economic policies in Indonesia.