Indonesian Labor Unions Demand Significant Minimum Wage Increase for 2026

Workers to Stage Nationwide Protests

Indonesian labor unions are planning nationwide demonstrations on November 22, 2025, to demand a substantial increase in the provincial minimum wage (UMP) for 2026 ¹

. The unions are calling for a minimum wage hike of 6.5% to 10.5%, rejecting the calculation method used by the Ministry of Manpower (Kemnaker) ¹

Source 1

https://finance.detik.com/berita-ekonomi-bisnis/d-8216121/buruh-tuntut-ump-jakarta-tahun-depan-naik-jadi-rp-6-juta

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Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8216176/buruh-tolak-hitungan-kenaikan-ump-2026-versi-kemnaker-ini-alasannya

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Dispute Over Calculation Method

The Ministry's formula has been criticized by labor unions, who claim it results in only a 3.75% increase in the minimum wage. According to Konfederasi Serikat Pekerja Indonesia (KSPI) President Said Iqbal, this percentage is below the economic growth rate of 5.12% ²

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Jakarta Workers' Specific Demands

Workers in Jakarta are demanding that the UMP for 2026 be set at Rp 6 million, representing a significant increase from the current Rp 5.39 million ³

. This demand reflects the unions' broader push for better wages amid economic concerns.

Economic Context and Implications

The wage adjustment is crucial as it directly affects workers' purchasing power in the face of inflation. Labor unions argue that the increase is necessary to maintain workers' welfare and economic balance ³

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Planned Action and Government Response

The demonstrations planned for November 22, 2025, will follow the government's announcement on the minimum wage for 2026 on November 21, 2025. The labor unions' actions underscore the tension between workers' demands and the government's economic policies.