November 9, 2025 | 07:41 pm
TEMPO.CO, Jakarta - The Confederation of Indonesian Trade Unions (KSPI) rejects the concept of the 2026 Provincial Minimum Wage (UMP) increase formula designed by the Ministry of Manpower and employers. KSPI President Said Iqbal stated that the stipulations in the upcoming Government Regulation (PP) have not involved the labor union side.
"The new wage is discussed within the National Wage Council ahead of the minimum wage determination; this is absurd," he said during a press conference on Sunday, November 9, 2025.
Iqbal stated that the Ministry of Manpower, under pressure from employer associations, is designing a specific index within the range of 0.2 to 0.7. However, the wage increase in 2025 used a specific index of 0.9, and the inflation and economic growth from 2024 to 2025 were not significantly different.
According to Iqbal, the specific index represents the labor's contribution to economic growth. The interpretation of this term has been clarified in Constitutional Court Decision Number 168/PUU-XXI/2023 issued on October 31, 2024.
"What is the value of the specific index? It depends on the macroeconomic value of the inflation rate and the macroeconomic value of the economic growth," said the president of the Labor Party.
Iqbal argued that a decrease in the wage index would also decrease purchasing power. He believes that with an inflation rate of only 2.86 percent in October 2025, workers should receive a more decent wage increase. "We can understand 0.9 to 1.0 for the specific index," he said.
If the specific index decreases, Iqbal stated that the Labor Party and KSPI will hold a national strike involving five million workers to protest, which could halt production in more than 5,000 Indonesian factories.
Meanwhile, the Director General of Industrial Relations and Social Security for Workers at the Ministry of Manpower, Indah Anggoro Putri, stated that there is no agreed-upon specific index figure. The discussion on the UMP increase has not reached its final stage. "We are still discussing the draft regulations and formulas with the National Wage Council," said Indah when contacted separately on Sunday, November 9, 2025.
Tempo attempted to confirm with the Chair of the Indonesian Employers' Association (Apindo), Shinta Widjaja Kamdani. However, as of the time of writing, Shinta has not responded.
Previously, Minister of Manpower Yassierli confirmed that the Provincial Minimum Wage (UMP) will increase next year due to inflation, economic growth, and the cost of living. However, the exact percentage has not yet been determined.
"It depends. We will not use a single figure. This is not final yet," he said in a Tempo Magazine report titled Yassierli: Wage Increase is Not Only to Please Workers on Sunday, November 2, 2025.
According to Yassierli, the UMP increase varies depending on the community's level of decent living needs. If there is a significant gap between needs and income, then the increase can be larger.
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