Key insights and market outlook
Workers in Indonesia are protesting the 2026 Provincial Minimum Wage (UMP), particularly in Jakarta and West Java, demanding higher wages that reflect the Cost of Living (KHL). The Jakarta UMP for 2026 has been set at Rp 5.73 million, below the demanded Rp 5.89 million. Led by the Indonesian Workers' Confederation (KSPI), protesters are planning to file a lawsuit with the Administrative Court if their demands aren't met 1
Workers across Indonesia, particularly in Jakarta and West Java, have taken to the streets to protest the newly announced 2026 Provincial Minimum Wage (UMP). The protests, led by the Indonesian Workers' Confederation (KSPI), are against the Jakarta UMP being set at Rp 5.73 million, which is lower than the workers' demand of Rp 5.89 million based on the Cost of Living (KHL) calculations 1
The protests are not just a one-day event; they are backed by a threat of legal action. KSPI President Said Iqbal has announced plans to file a lawsuit with the Administrative Court if their demands are not met. The legal process will begin with filing an objection letter to the Governor, as required by procedure 2
The government's decision to set the UMP at the current level has been criticized for not adequately addressing the rising cost of living. Saeful Tavip, President of the All-Indonesia Workers Organization (OPSI), emphasized that the issue is not just about the percentage increase but the failure to use KHL as the primary reference for setting the minimum wage 4
2026 Minimum Wage Protests
Workers' Rights Demonstration
Legal Action Against UMP