Key insights and market outlook
Thousands of workers in Indonesia protested the 2026 minimum wage decisions in Jakarta and West Java. The Jakarta minimum wage was set at Rp 5.73 million, below the Rp 5.89 million living cost standard. Workers demand revisions to match living costs and reject sectoral minimum wage adjustments in West Java 1
Thousands of workers across Indonesia staged massive protests on December 29-30, 2025, in response to the recently announced 2026 minimum wage decisions for Jakarta and West Java. The protests, organized by various labor unions including the Indonesian Workers Confederation (KSPI), drew participants from multiple regions 1
Jakarta Minimum Wage Dispute: Workers rejected the Jakarta Governor's decision to set the 2026 minimum wage at Rp 5,729,876, arguing it falls short of the Rp 5,89 million living cost standard calculated by the Central Statistics Agency (BPS). Labor leaders, including KSPI President Said Iqbal, contend that the wage setting reduces workers' purchasing power 1
West Java Sectoral Wage Issues: In West Java, workers protested the Governor's decision regarding sectoral minimum wages, arguing that many sectors recommended by local governments were excluded from the final decree. The West Java UMP for 2026 was set at Rp 2,317,601, representing a 5.767% increase from the previous year 4
On December 29, 2025, hundreds of workers gathered in Jakarta, conducting a long march from Merdeka Selatan Street to Balai Kota Jakarta before returning to Monas. The action was initially planned for Istana Negara but was relocated due to security concerns 5
On December 30, 2025, workers from West Java, including those from Bekasi, Karawang, and Bandung, planned to converge on Jakarta with an estimated 10,000 motorcycles, bringing the total number of protesters to around 20,000 6
Government officials have defended the minimum wage decisions as balancing between worker welfare and business sustainability. However, labor unions maintain that the decisions fail to adequately address rising living costs and wage disparities between regions. The protests highlight the ongoing tension between economic growth considerations and worker welfare in Indonesia's labor market 1
2026 Minimum Wage Protests
Labor Demonstrations in Jakarta
West Java Sectoral Wage Protests