JAKARTA - The Indonesian Workers' Confederation (KSPI) suspects that there is an order to use the 0.7 wage index in determining the minimum wage in 2026 in a number of industrial areas. Although President Prabowo Subianto has opened the use of the index up to 0.9.
KSPI President and Labor Party President Said Iqbal said his party had received information from the field that there were allegations that the Ministry of Home Affairs and the Ministry of Manpower had issued such directions to the regional labor services.
"This is still a suspicion and needs to be confirmed. But the fact is, in many industrial areas, the governors and regional heads are directed to use an index of 0.7, some even lower," said Said Iqbal in an official statement, Thursday, December 25.
If the allegations are true, continued Said Iqbal, then the policy is not in line with the President's decision and has the potential to trigger social unrest among workers.
"If the President has opened a space of 0.9, then the regions are standardized at 0.7, it is the same as against the President's policy and lowering the purchasing power of workers," he said.
KSPI noted that the implementation of the 0.9 index in a number of industrial areas such as Bekasi Regency, Karawang, Serang, and Tangerang could only be realized after the massive labor action.
Meanwhile, in other areas, continued Said Iqbal, such as Central Java, East Java, and a number of areas in Sumatra, workers are still under pressure to accept a lower index in the determination of minimum wages.
In addition, KSPI also confirmed its rejection of the DKI Jakarta Provincial Minimum Wage (UMP) for 2026 by the Governor of DKI Jakarta. KSPI considers that the policy makes workers in Jakarta poorer and their purchasing power continues to decline.
Based on the determination of the DKI Jakarta UMP and the national conditions, KSPI stated that it would take two paths of resistance. Legally, KSPI will file a lawsuit with the State Administrative Court (PTUN) because the determination of the UMP is a state administrative decision.
Meanwhile, in terms of movement, KSPI together with the labor alliance will hold a massive mass action at the State Palace and DKI Jakarta City Hall. The action is expected to take place at the end of December or in the first week of January 2026.
"Cheap wages will only deepen the crisis of purchasing power and disrupt social stability. Workers will not be silent," said Said Iqbal.
Previously, the DKI Jakarta Provincial Government (Pemprov) officially announced an increase in the DKI Jakarta provincial minimum wage (UMP) 2025 of Rp5,729,876.
DKI Jakarta Governor Pramono Anung said the figure was up 6.17 percent from the 2026 UMP of Rp5,396,761.
"After several meetings in the Wage Council between workers, employers, and the DKI Jakarta Government, it has been agreed to increase the DKI Jakarta provincial minimum wage or UMP in 2026 by Rp5,729,876," said Pramono at the DKI Jakarta City Hall, Central Jakarta, Wednesday, December 24.
This announcement was made at the deadline set by the Ministry of Manpower (Kemenaker). The value of Jakarta UMP next year was determined by Pramono in the governor's decision which has been signed.
In the process of determining next year's UMP, the DKI Provincial Government refers to Government Regulation Number 49 of 2025 concerning the Second Amendment to Government Regulation Number 36 of 2021 concerning Wages. The regulation regulates the range of minimum wage adjustments that serve as the basis for local government calculations.
"In the PP, the rule is 0.5 to 0.9. In the meeting of the Wage Council to discuss matters related to UMP, it was decided that the determination of UMP 2026 was based on the rule of 0.75. This UMP can be ensured to experience an increase and above the existing inflation in Jakarta," said Pramono.
Not only DKI Jakarta, Central Java Governor Ahmad Luthfi also announced the 2026 provincial minimum wage (UMP) of Rp2,327,386.07, or an increase of 7.28 percent from the 2025 UMP which was Rp2,169,349.00.
"The recommendation that I have signed today is the minimum and sectoral labor wages in 35 regencies/cities including the province," he said in Semarang, Wednesday, December 24, as reported by ANTARA.
Compared to the 2025 UMP of Central Java, the provincial UMP next year experienced an increase of Rp158,037.07.
He said the wage council's recommendations had been officially signed for all regions in Central Java, both at the provincial and district/city levels.
The alpha value for UMP Jateng is set at 0.90, while the alpha value in districts/cities is adjusted according to the results of the discussion of the remuneration council of each region.
"The special thing about the province is 0.90, while the districts are adjusted to their respective capabilities," he said.
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