Workers Reject DKI UMP 2026 Rp5.73 Million, KSPI Values Purchasing Power More Depressed

JAKARTA - The Indonesian Workers' Confederation (KSPI) together with the Labor Party firmly rejects the determination of the DKI Jakarta Provincial Minimum Wage (UMP) for 2026 which is set at Rp. 5.73 million per month.

KSPI President and Labor Party President Said Iqbal stated that KSPI considered that the policy did not reflect the bias towards workers and could actually reduce workers' purchasing power in the midst of high living costs in the capital.

"We reject it. I repeat, KSPI and the Labor Party reject the increase in the DKI Jakarta minimum wage for 2026 which is set with an index of 0.75 so that the UMP is only IDR 5.73 million," said Said Iqbal in an official statement, Thursday, December 25.

The rejection, said Said Iqbal, was the unanimous attitude of all trade union alliances in DKI Jakarta which also received full support from the Labor Party.

"Workers reject the determination of the DKI 2026 UMP by the DKI Governor, workers are getting poorer and their purchasing power is decreasing," he said.

According to Said Iqbal, there are at least four main reasons for workers' rejection of the determination of the DKI Jakarta Minimum Wage 2026. First, all DKI Jakarta labor alliances have agreed to the demand that the minimum wage be set at 100 percent of the Minimum Living Standard (KHL).

Based on the Ministry of Manpower's calculations, continued Said Iqbal, the value of 100 percent KHL is Rp5.89 million per month.

"With UMP Rp5.73 million, there is still a difference of around Rp160 thousand. The difference of Rp160,000 is very meaningful for workers, it can be for food, transportation, or other basic needs," said Said Iqbal.

The second reason, UMP DKI Jakarta is considered illogical because it is lower than the Minimum Regional Wage (UMK) in industrial buffer areas such as Bekasi and Karawang Regencies which have reached around IDR 5.95 million.

"Is it reasonable that the minimum wage in Jakarta is lower than Bekasi and Karawang, while the cost of living in Jakarta is much more expensive?" he said.

Third, KSPI considers the three incentives mentioned by the DKI Jakarta Provincial Government, namely transportation, clean water, and BPJS, not part of wages. In addition, these incentives are not received directly by all workers and are very dependent on the ability of the APBD.

"There are more than one million workers in Jakarta. It is impossible for everyone to receive the incentive. So it is not a solution," said Iqbal.

Fourth, continued Said Iqbal, data from the Central Statistics Agency (BPS) shows that the cost of living for a small family in DKI Jakarta can reach around Rp. 15 million per month. Meanwhile, the UMP 100 percent of KHL alone is only in the range of Rp. 5.89 million.

"Even one-third of the real life needs in Jakarta alone are not met," he said.

Previously, DKI Jakarta Governor Pramono Anung officially announced an increase in the DKI Jakarta provincial minimum wage (UMP) 2025 of Rp5,729,876. This figure is up 6.17 percent from the 2026 UMP of Rp5,396,761.

"After several meetings in the Wage Council between workers, employers, and the DKI Jakarta Government, it has been agreed to increase the DKI Jakarta provincial minimum wage or UMP in 2026 by Rp5,729,876," said Pramono at the DKI Jakarta City Hall, Central Jakarta, Wednesday, December 24.

This announcement was made at the deadline set by the Ministry of Manpower (Kemenaker). The value of Jakarta UMP next year was determined by Pramono in the governor's decision which has been signed.

In the process of determining next year's UMP, the DKI Provincial Government refers to Government Regulation Number 49 of 2025 concerning the Second Amendment to Government Regulation Number 36 of 2021 concerning Wages. The regulation regulates the range of minimum wage adjustments that serve as the basis for local government calculations.

"In the PP, the rule is 0.5 to 0.9. In the meeting of the Wage Council for discussion of matters related to UMP, it was decided that the determination of UMP 2026 was based on the rule of 0.75. This UMP can be ensured to experience an increase and above the existing inflation in Jakarta," said Pramono.

"In the discussion, there must be a tug-of-war. I will convey it as it is and transparent. For entrepreneurs, at first they certainly survived with 0.5 and rose to 0.55, and they survived at that figure. Meanwhile, workers / workers, they want it of course above 0.9," he continued.

For Pramono, UMP is not just a wage increase. Pramono admitted that the DKI Provincial Government saw the overall code, both from the workers' side, then the employers. To ensure that wages in DKI Jakarta are above the regional inflation, the DKI Provincial Government decided to provide a number of incentives for workers and employers.

"Of course, in addition to this, there are still other social protection programs that can be accessed in accordance with the applicable provisions in accordance with the legislation," he explained.