Workers Demand An 8.5 Percent Wage Increase, Minister Of Manpower: We Accommodate

Minister of Manpower Yassierli (Photo: dock. Antara)

JAKARTA - The Minister of Manpower, Yassierli opened his voice over the demands of the Confederation of Indonesian Trade Unions (KSPI) and the Labor Party which proposed an increase in the minimum wage in 2026 by 8.5 percent to 10.5 percent.

Yassierli said that his party was still conducting a study on the 2026 Provincial Minimum Wage (UMP). For this reason, he admitted that he would accommodate the proposal given by the labor association.

"That's part of the process. It has aspirations, of course, we will accommodate our aspirations later, we will also listen from other sectors," Yassierli told the media crew, Monday, October 13.

He emphasized that the wage formulation was still being carried out because it needed views from various sectors. On the other hand, discussions will still be held with the National Wage Council (Dapenas) which is part of the plan maturation process. The formulation of the new wage increase will be announced in November.

"We are targeted according to the usual timeline every year, yes, in November we will come out with a formulation," said Yassierli.

Previously, 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.