Workers Reject Formula For The 2026 Minimum Wage Increase By The Government And Entrepreneurs Version

Labor Illustration/ Photo: IST

JAKARTA - The Confederation of Indonesian Trade Unions (KSPI) together with the Labor Party firmly rejected the proposed increase in the 2026 minimum wage proposed by the Minister of Manpower and businessmen. The President of KSPI as well as the President of the Labor Party, Said Iqbal, emphasized that the attitude of workers throughout Indonesia has consistently fought for wage increases in the range of 8.5 percent to 10.5 percent.

"This figure is a reference for all labor unions at the provincial and district/city levels in the discussion of the Wage Council. In addition, we also demand that the sectoral minimum wage be applied, and the value must be higher than the UMK," Said Iqbal said in a statement received, Sunday, November 9.

He highlighted the government's plan through the Ministry of Manpower plans to issue a Government Regulation (PP) on Wages without first discussing it with the union. "This PP has never been consulted with a labor union. If it is suddenly issued ahead of the determination of the minimum wage, it is an act that is inconsequential and not transparent," he said.

Said Iqbal also denied the claim by the Chairman of the National Wage Council (DEN) that the President had approved a new formula for the minimum wage. "We believe the statement is misleading. It is not true that President Prabowo has approved the new formula," he said.

According to Iqbal, the government's attitude as if wanting to formulate policies without involving workers actually contradicts the spirit of social dialogue and industrial justice. "How is it possible that policies related to labor life are made without hearing the voices of workers? That is clearly unfair," he said.

Furthermore, Iqbal reminded that based on the Constitutional Court's Decision Number 168/PUU-XXI/2023, the minimum wage increase must refer to certain economic growth, inflation, and indexes. He said inflation for the October 2024 period September 2025 was at 2.65 percent, while economic growth reached 5.12 percent. Certain boarding schools are the authority of the President, not determined unilaterally by other parties," he explained.

Iqbal also mentioned President Prabowo's decision in the previous year which set a certain index close to 0.9 with similar economic conditions. "If this year the index is lowered to 0.2'0.7, it means that the Minister of Manpower is actually in favor of entrepreneurs who want to pay low wages," he said.

He emphasized that President Prabowo's message was clear: decent wages will boost the purchasing power and growth of the national economy. If the index is lowered, it means that the policy is contrary to the President's populist vision. This is a capitalistic policy that does not side with the workers," he added.

KSPI and the Labor Party also criticized Apindo's proposal, which only wanted a certain index in the range of 0.1'0.5, because they thought it would only result in a very small wage increase, even under the need for a decent living.

Closing his statement, Said Iqbal emphasized that the struggle of workers will continue to demand an increase in the minimum wage of 8.5 to 10.5 percent, as a tangible form of partiality to economic justice and the welfare of the working class.