Reject The Government's Version Of The Increase In Wages Proposal, Urges To Increase 8.5 To 10.5 Percent

JAKARTA - The Confederation of Indonesian Trade Unions (KSPI) and the Labor Party firmly rejects the proposal to increase the minimum wage in 2026 according to the Ministry of Manpower and employers.

The President of KSPI who is also the President of the Labor Party, Said Iqbal emphasized that labor unions throughout Indonesia continue to fight and rely on demand for an increase of 8.5 to 10.5 percent.

Iqbal emphasized that KSPI and the Labor Party will continue to fight for an increase in the minimum wage of 8.5 to 10.5 percent as a form of economic justice and taking sides with the working class.

"The 8.5 to 10.5 percent figure is a reference for labor unions in all regions, both in the provincial and district/city Wage Council. In addition, we are also fighting for the existence of sectoral minimum wage whose value must be greater than the UMK," said Iqbal in an official statement, Sunday, November 9.

Iqbal emphasized that KSPI and the Labor Party rejected the government's plan through the Minister of Manpower and the Deputy Minister of Manpower who wanted to issue a Government Regulation (PP) on Wages which was said to have not been discussed with the union.

This 'PP' has not been discussed with the union. And it will only be published ahead of the determination of the minimum wage. So if suddenly the PP is issued, it's ridiculous and ridiculous," said Iqbal.

Iqbal also assessed that the statement by the Chairman of the National Wage Council (DEN) Luhut Binsar Pandjaitan who claimed to have met President Prabowo Subianto and stated that the president agreed that the new formula for determining the minimum wage was misleading.

"We suspect it was a lie. It is not true that President Prabowo agrees with the new formula," he said.

Furthermore, Iqbal also highlighted statements by government officials who seemed to want to make regulations without involving labor unions.

"How is it possible that policies related to labor wages are made without involving the workers themselves? This is contrary to the spirit of social dialogue and the principle of justice," he said.

Based on the Constitutional Court Decision Number 168/PUU-XXI/2023, Iqbal continued, the increase in the minimum wage must refer to economic growth, inflation, and certain indexes.

"Inflation from October 2024 to September 2025 is 2.65 percent and economic growth is 5.12 percent. The certain index is the prerogative of the President, not a group of people outside the constitutional mandate," he said.

According to Iqbal, last year President Prabowo decided that certain indexes were close to 0.9, and with almost the same macroeconomic conditions. Thus, there is no reason this year's index was lowered to 0.2 to 0.7.

"If certain indexes are lowered, it means that the Minister of Manpower actually protects black entrepreneurs who want to pay low wages," he said.

Furthermore, Iqbal reminded President Prabowo's message that the decent wage would increase purchasing power, consumption, and economic growth.

"If the minister lowers the index to 0.2, it is against the President's own policy. This is a capitalistic policy that is contrary to the President's populist vision," he said.

KSPI and the Labor Party also rejected Apindo's proposal, which wanted a certain index to be only 0.1 to 0.5. If you use that formula, the wage increase will be very small, even below the need for a decent life," he said.