Aprisindo Soroti Aturan Baru soal Upah: Masih Jauh dari Harapan

JAKARTA - The Indonesian Association of Collective Bargaining (Aprisindo) highlights the wage rules in Government Regulation (PP) Number 49 of 2025 which serves as a reference for calculating the 2026 Provincial Minimum Wage or UMP 2026.

The new wage rules are considered to be further away from the reality of the ability of the labor-intensive sector.

The newly elected Chairman of Aprisindo, Anton J. Supit, assessed that the new regulation has the potential to add to the burden of the industry, which has been relying on a large labor force.

"The most crucial issue for the footwear labor-intensive industry is related to remuneration based on the new regulation PP 49/2025 which is still far from the expectations of the footwear labor-intensive industry's ability, from sectoral wages and high alpha figures," said Anton at the XI Aprisindo Congress in Jakarta, Wednesday, January 21.

The concern is not without reason. The footwear industry is known to be very sensitive to labor costs. Any wage increase will directly affect the production cost structure, which ultimately determines competitiveness in the global market.

Anton even reminded that if the wage policy is not adjusted to the conditions of the industry, the risk of investors leaving the production base area could become a reality.

"Maintaining the investment climate in Central Java is important, because if the high wage is the same as that of Banten Province, Central Java has the potential to be abandoned by investors," he said.

Moreover, the footwear sector has always been the backbone of absorbing national labor. The scale of the industry is not only about exports, but also concerns the livelihood of millions of families in various production centers.

"The footwear industry is a labor-intensive industry, where most of the production process involves direct labor with 1.3 million workers depending on this sector," he said.

Not stopping there, Anton emphasized that the footwear industry also contributes to state revenue and national economic stability, so that the sustainability of the shoe industry is a strategic issue.

"This is a buffer for the national economy through the absorption of a large workforce and contributions to taxes. Therefore, strengthening the footwear industry requires the joint commitment of all stakeholders," he explained.

Furthermore, said Anton, his party also encourages broader policy improvements. According to him, strengthening the industry cannot be separated from the government's courage to deregulate and provide incentives that are truly felt by business actors.

"Industrial actors emphasize the importance of strengthening the foundation of the national industry through deregulation policies that provide administrative and technical ease, acceleration of services and more affordable costs," he said.

According to Anton, a conducive climate also needs to be supported by fiscal and non-fiscal policies, including the issue of the smooth supply of raw materials which have so far been the main obstacle.

"Including the ease of regulating the import of leather raw materials, fabrics, threads and increasing the availability of raw materials in the country," he concluded.

Aprisindo noted that national footwear exports reached US$7.25 billion as of November 2025. This figure grew 9.08 percent year on year (yoy).

The United States (US) is still the main market share, with a contribution of around 30 percent. Despite facing a reciprocal tariff of 19 percent per August 2025, footwear exports to Uncle Sam's country still recorded an increase of 7.73 percent or the equivalent of 2.54 billion US dollars.