DPR Values The Government Has No Policy Regarding The 2026 Minimum Wage

Illustration of labor (ANTARA)

JAKARTA - Member of Commission IX of the Indonesian House of Representatives, Edy Wuryanto, assessed that the government has no direction regarding the rules for the 2026 Minimum Wage (UM) increase. He emphasized that the government's delay in preparing the legal basis for the 2026 UM increase is a form of serious negligence, because it directly has an impact on the working people and the business world.

Edy said, until entering the deadline for determining the UM according to the mandate of PP 36/2021, the Ministry of Manpower has not yet determined the form of regulation to be used.

The PDIP legislator also reminded that PP 36/2021 has locked the governor's obligation to determine the provincial UM no later than November 21. Then district/city UM no later than December 1.

"If the regulations alone are not prepared, how can the regional head work according to the mandate? The central government should not be a source of chaos," Edy told reporters, Wednesday, November 19.

Edy assessed that the government seemed to repeat the bad pattern last year, when the President suddenly announced an increase in the UM 2025 by 6.5 percent without a transparent regulatory process, then the Minister of Manpower issued a Permenaker which only followed the figure.

The wages are not numbers that come down from the podium and then are transformed into policies. This country has the law. The determination of the UM must not rely on statements," said Edy.

The DPR member from the Central Java III electoral district also emphasized that the state must show seriousness by ensuring regulations are present before the policy is announced, not after.

According to Edy, the implementation of the single increase rate such as 6.5 percent last year has proven to be detrimental to workers in areas with high economic growth. He gave an example of North Maluku, which has a prominent economic growth of 34.58 percent in the first quarter of 2025.

"How is it possible that workers in regions with such a high economic spike are equated with other provinces? If the government talks about justice, it should depart from data, not from uniform numbers," he said.

Edy also regrets ignoring the mandate of the Constitutional Court regarding Decent Living Needs (KHL). He reminded that KHL is not an option, but a constitutional basis in determining wages.

"There is already Permenaker 18/2020 which regulates 64 KHL items, but again it is not used as a reference. Do not let the state deliberately close their eyes on instruments that protect workers," he said.

Edy assessed that the loss of the role of the Regional Wage Council in the UM 2026 process further showed the non-compliance of the Ministry of Manpower with the Constitutional Court's decision 168. The absence of regulations until the deadline, according to Edy, is a form of neglect of the interests of workers and the business world at once.

He also emphasized that the company needs certainty to draw up a 2026 workforce budget, including the calculation of the price of goods and services.

"This is not a trivial matter. How can the company plan production and investment if the wage rules that are the basis of the budget are not clear? The government should not complicate the business sector with uncertainties like this," said Edy.

Meanwhile, added Eddy, workers and families have already been burdened by food inflation and increased living expenses. Edy warned that the postponement of the 2026 UM regulation opened up opportunities for major disputes in the Administrative Court and sparked a wave of demonstrations.

Their real wages have gone down even before entering 2026. Delaying regulations only deepens their vulnerability. Don't forget, the purchasing power of workers is the pulse of the national economy," he concluded.