KSPI rejects the Minimum Wage PP signed by Prabowo. Here's the reason!

JAKARTA - Workers affiliated with the Confederation of Indonesian Workers' Unions (KSPI) rejected the Government Regulation (PP) on workers' wages signed by Prabowo on Tuesday, December 16.

This was conveyed by the President of KSPI, Said Iqbal, through an online press conference, Wednesday, December 17.

"The determination of the minimum wage for 2026 with the latest Government Regulation, we reject," he said, Wednesday, December 17.

Said said there were several reasons behind the rejection.

He explained, the first point is that workers were never involved in the preparation of this PP.

Thus, his party does not know for sure the contents of the PP. On the other hand, the socialization-based discussion in the Wage Council was also only carried out once with a duration of 2 hours.

"Thus, to this day, workers, including KSPI, have never known what the article by article of the PP regarding remuneration is," continued Said.

Furthermore, based on information collected from the government and the media, Said assessed that the PP was detrimental to workers related to the definition of a decent living standard.

He argued that the definition of KHL must refer to the Minister of Manpower Regulation No. 18 of 2020 which consists of 64 items of KHL such as considering 10 kg of rice, 0.75 kg of meat, installments or house rent, to transportation.

"But in the explanation of the Minister of Home Affairs regarding the determination of the minimum wage increase which refers to this PP does not use the definition of KHL as referred to in Minister of Home Affairs Regulation 18/2020," he explained.

This, he said, resulted in the KHL criteria being decided unilaterally by the government.

Said also questioned who was involved in calculating the KHL. If it is in partnership with the Central Statistics Agency, Said said that the Ministry of Manpower should use a cost of living survey that says the cost of living in Jakarta is Rp15 million.

Meanwhile, if using data from the National Energy Council (DEN), Said said, DEN is not a ministry or agency, but only an ad hoc agency tasked with assisting the government.

"We consider the definition of KHL presented by the minister is just a trick, as if he wants to frame or narrate that the minimum wage in Indonesia has exceeded a decent life," he continued.

Finally, the reason why his party rejected this PP is the return of the cheap wage regime by adopting PP Number 51 of 2024 and PP Number 36 of 2021 regarding remuneration which has been revoked.

"The two PPs were widely adopted in the new wage system, which adheres to a cheap wage regime. This led KSPI and workers to reject the PP on wages. Thus, the determination of the minimum wage for 2026 with our latest PP is rejected," said Said.