Labor Day

In front of the mass of workers who crowded Monas on the 2026 Labor Day, President Prabowo Subianto announced a restriction on the application of online transportation to a maximum of 8 percent through Presidential Regulation Number 27 of 2026. He also promised to build one million workers' houses near industrial areas.

The good news. But the question is not over. Is the policy enough to make workers really live a decent life? This question is important because the Indonesian economy looks fine. The Central Statistics Agency recorded the Indonesian economy throughout 2025 grew 5.11 percent, higher than 2024 which grew 5.03 percent. The value of gross domestic product on a price basis reached Rp23,821.1 trillion. GDP per capita is Rp83.7 million or 5,083.4 US dollars.

The numbers give the impression that the national economic engine is still on. Stable. Promising. But the economy does not only live in statistical reports. It also lives in the kitchens of workers, in the dormitories of factory workers, in informal markets, and in the seats of motorcycle drivers of applications. That's where growth is tested.

History records, on May 1, 1886, hundreds of thousands of workers in the United States took to the streets demanding an eight-hour workday. The action was related to the Haymarket Affair in Chicago, May 4, 1886, which later became a symbol of the world labor struggle. More than a century has passed, the form of the demands has changed. But the essence remains the same. Decent work, fair wages, and a dignified life.

Employment data does seem to be improving. BPS recorded the open unemployment rate in November 2025 at 4.74 percent. The working population reached 147.91 million people. The average wage of workers is IDR 3.33 million per month.

At first glance, this data looks good. Unemployment is low. The number of people working is large. But the more important question is not just whether someone is working, but what they are working as, with what kind of protection, and whether their income is enough to live a decent life.

This is where the problem is seen. Indonesia does not lack people to work. What is lacking is a job that gives a sense of security. BPS recorded the proportion of informal workers in February 2025 reached around 59.40 percent of the total workers. This means that the majority of Indonesian workers are in a work space that is not completely safe. Income is uncertain. Protection is limited. The future is difficult to predict.

Social protection data shows the same gap. BPJS Employment recorded the number of active participants at around 48.64 million people until 2025. Compared to 147.91 million working people, there are still tens of millions of workers who have not been covered as active participants in employment social security.

This is the important issue. The problem of labor is not just the existence or absence of jobs. The problem is the quality of work. Many new jobs come in the form of flexible. Short-term contracts, informal work, outsourcing, to work based on digital platforms. On the surface it looks like an opportunity. But inside it contains uncertainty. Job security is weak. Social protection is limited. Workers bear more risk.

Economic growth should make life easier. But for many workers, it feels just the opposite. The price of basic necessities is rising. Transportation costs are increasing. House rents are creeping up. While income is moving slowly.

The average wage of workers of Rp3.33 million per month gives a simple picture. Many workers still live near the poverty line. Wages are brought home, then quickly spent on food, rent, motorcycle installments, work expenses, and children's school fees. So the strong growth seen at the national level does not always feel at the household level.

This is the challenge of workers today. If in the past the problem was working hours and wages, now workers face flexible contracts, the threat of layoffs, skill gaps, and the pressure of digitization. Modern economics does create efficiency. But efficiency does not always mean justice.

Those who are easier to enjoy growth are those who have capital, access to technology, and high skills. Large companies can reduce costs and increase productivity. The digital sector and modern services are growing rapidly. However, low-wage workers, contract workers, and informal workers are often on the fringes of growth. They move the economy, but do not always enjoy the results.

Here, the question becomes simple. If the economy grows by 5.11 percent, who really feels it? The answer is not encouraging. Growth has not been fully inclusive. It is not strong enough to turn work into welfare. It has not been able to ensure that the tens of millions of workers feel the results of development fairly.

That is why Labor Day reminds us that stable macro figures do not necessarily mean that workers' lives are improving. Working does not necessarily mean prosperous. Indonesia is not short of growth. What is still lacking is a sense of security for those who work. As long as workers still live from paycheck to paycheck, as long as the status of work remains fragile, and protection has not reached everyone, then economic growth will remain a number. Not prosperity.