Key insights and market outlook
The Jakarta government has announced additional support measures for workers following the 6.17% increase in the provincial minimum wage (UMP) to Rp5.73 million. The support includes subsidized food, public transportation assistance, free health checks, and access to clean water through PAM JAYA. However, labor unions have expressed concerns that the UMP increase is below the living wage standard, citing Jakarta's living costs between Rp5.8-14 million monthly 1
The Jakarta government, led by Governor Pramono Anung, has introduced a comprehensive support package for workers and businesses in response to the recent 6.17% increase in the provincial minimum wage (UMP) to Rp5.729 million 1
The support measures include 1
The Jakarta government has implemented a verification process through the Department of Manpower, Transmigration, and Energy (Disnakertransgi) to validate worker eligibility for these benefits 2
Despite the additional support measures, labor unions have expressed significant concerns regarding the adequacy of the UMP increase. The Confederation of Indonesian Workers' Union (KSPI) and Indonesian Workers Association Union (ASPIRASI) have both criticized the adjustment, stating it falls short of the living wage standard in Jakarta 3
Different calculations of Jakarta's living wage have been cited:
Labor leaders argue that the current UMP remains significantly below these figures, with a shortfall of approximately Rp160,000 compared to the union's demands 5
The KSPI has announced plans to challenge the UMP decision in the Administrative Court (PTUN), citing that the increase does not meet the 100% living wage requirement advocated by labor unions 5
UMP Increase to Rp5.73 Million
Worker Support Package Announcement
Labor Union Protests