August 6, 2026 | 05:10 pm
TEMPO.CO, Jakarta - Said Iqbal, President of the Confederation of All Indonesian Workers' Unions (KSPI) and the Labor Party, has guaranteed that there will be no labor rallies between August and September 2026. He made this statement in response to rumors circulating on social media regarding a potential wave of protests involving worker groups.
Said claimed that workers affiliated with the organization he leads have agreed to refrain from staging mass protests over the next two months. "It is certain that the KSPI, the Labor Party, and Indonesian workers will not hold any protests during August and September 2026. If some labor leaders suggest there is a potential for unrest in August, that is incorrect," Said stated during an online press conference on Thursday, August 6, 2026.
Special Advisor to the President for Employment and Workers' Welfare stated that labor groups have currently chosen to collaborate with the government to focus on resolving four key demands.
First, the KSPI urges the government to immediately issue a revision to the Regulation of the Minister of Manpower (Permenaker) Number 7 of 2026, specifically regarding the article governing supporting roles within outsourcing schemes. He noted that this regulatory revision would restrict outsourced workers to just four types of supporting roles: cleaning services, catering, security, and driving.
Second, the labor movement is calling for a tax exemption, or a rate of zero percent, on the withdrawal of Old-Age Security (JHT) funds. He argues that the taxation rules applied to workers' JHT principal savings should be abolished.
As an alternative solution, Said proposed raising the JHT balance threshold subject to taxation from Rp50 million to Rp400 million. He believes this scheme could serve as a middle ground while ensuring that only high-income workers are subject to the JHT tax.
Third, Said urged the Ministry of Manpower to amend the regulation so that laid-off workers receive severance pay amounting to 0.5 times their monthly wage. He argued that the 0.5-times scheme—stipulated in Government Regulation Number 35 of 2021—is no longer relevant, given that the Job Creation Law governing this provision was struck down by the Constitutional Court in Ruling Number 168 of 2024.
Finally, labor groups are calling on the government to immediately pass a new Manpower Law. Said stated that he has been coordinating intensively with the Minister of State Secretary and the leadership of the House of Representatives (DPR) to ensure these four demands are met promptly. "The prospect of labor protests in August or September will not materialize if the government responds quickly to this revision," he said.
Read: Indonesia Warns of Criminal Charges Over August Riot Hoaxes
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