JAKARTA The Confederation of Indonesian Trade Unions (KSPI) and the Labor Party proposed an increase in the minimum wage in 2026 by 8.5 percent to 10.5 percent.
The President of KSPI who is also the President of the Labor Party, Said Iqbal said this proposal refers to the Constitutional Court Decree (MK) Number 168 which stipulates that the minimum wage increase is calculated based on inflation, economic growth, and certain indexes, taking into account the fulfillment of decent living needs (KHL).
"Thus, KSPI and the Labor Party propose a minimum wage in 2026 to increase by 8.5 percent to 10.5 percent," he said in a written statement, Monday, August 11.
Based on the projected Research and Development of the Labor Party and KSPI, inflation in October 2024 "September 2025 is estimated at 3.23 percent, economic growth at 5.1'5.2 percent, and certain indexes at 1.0'1.4.
For the sectoral minimum wage, the additional increase is estimated to be 0.5'5 percent depending on the type of industry. KSPI and the Labor Party urge the government to set the UMP/UMK and UMSP/UMSK 2026 no later than October 30, 2025.
The discussion process at the National and Regional Wage Council is expected to take place between August 25, October 30, 2025.
"According to the regulation of the Minister of Manpower, the increase in the minimum wage will begin to be discussed intensively both at the National Wage Council and at the Regional Wage Council from September to October and determined by the Governor in November," said Iqbal.
In addition, KSPI and the Labor Party will hold a major simultaneous action in 38 provinces and more than 300 regencies/cities on August 28, 2025.
The peaceful action targets the participation of tens to hundreds of thousands of workers, with the main demand for an increase in the 2026 minimum wage of 8.5' 10.5 percent.
In addition to the wage issue, the action also carries six other demands, namely:
SEE ALSO:
1. Remove Outsourcing and Rejecting Low Wages (HOSTUM). 2. Stop layoffs by forming a Layoff Task Force. 3. Labor Tax Reform: Raise PTKP to IDR 7.5 million per month, remove severance pay, THR, JHT, and tax discrimination against married women. 4. Sahkan RUU Ketenagakerjaan tanpa konsep Omnibuslaw.5. Sahkan RUU Perampasan Asset untuk pemberantasan korupsi.6. Revision of Election Bill dengan redesign sistem Pemilu 2029.
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