Jakarta Workers' Union Protests Minimum Wage Decision

Demands for Higher Minimum Wage

The Indonesian Workers' Confederation (KSPI), led by President Said Iqbal, has expressed strong dissatisfaction with the recently announced 2026 Jakarta minimum wage of Rp 5.73 million. The union is demanding that the wage be increased to Rp 5.89 million, arguing that the current figure does not reflect the true cost of living in Jakarta. Said Iqbal highlighted the disparity between workers in Jakarta and those in surrounding industrial areas, noting that workers in high-rise buildings in Jakarta often receive lower wages than those working in factories in Karawang and Bekasi.

Economic Context and Comparisons

Said Iqbal pointed out that the average per capita income in Jakarta, according to the International Monetary Fund (IMF) and World Bank, is around US$ 21,000 (approximately Rp 343 million per year or Rp 28 million per month). He argued that the proposed minimum wage of Rp 5.73 million is far below this average, indicating a significant social inequality. The union is also calling for the Provincial Sectoral Minimum Wage (UMSP) to be set 5% above the Living Needs Standard (KHL), which would translate to a wage between Rp 6.1 million and Rp 6.5 million per month.

Challenges and Implications

The union's demands highlight the challenges faced by workers in Jakarta, where the cost of living is high. Said Iqbal emphasized that even the demanded wage increase would still be insufficient for a decent standard of living in the city, citing the example of a cup of coffee at a three-star hotel costing Rp 50,000. The situation underscores the broader issue of income inequality in Jakarta, where many workers struggle to make ends meet despite the city's high average income.