November 14, 2025 | 11:40 am
TEMPO.CO, Jakarta - Said Iqbal, Labor Party president, claimed that labor unions will engage in a national strike this month or early next month, as they reject a new minimum wage formula. The wage formula for the Provincial Minimum Wage (UMP) and the City Minimum Wage (UMK) by the Ministry of Manpower is estimated to be below expectations.
The protest will be joined by members of the Labor Party, the Indonesian Trade Union Confederation (KSPI), and the Labor Union Coalition. "It will be joined by 5 million workers from over 5,000 factories across Indonesia in 300 regencies/cities, 38 provinces, they will halt production," he said in a statement on Thursday, November 13, 2025.
Iqbal says the 2026 wage hike may use specific index of 0.2 to 0.7, and according to his calculations, the former will result in around a 3.65 percent increase. This calculation is based on 2.65 percent inflation plus 0.2, multiplied by 5.12 percent national economic growth.
Converted to currency, Iqbal said, the wage hike will only be around Rp100,000 or Rp200,000 in Jakarta, Bogor, Depok, Tangerang, and Bekasi areas. Meanwhile, the Labor Party demands the use of specific index 0.9 to 1.4 percent, depending on the economic growth of each province.
Iqbal urged Manpower Minister Yassierli to resign from his post if the wage increase is too low. "The compromise figure for 2026 minimum wage hike must not be lower than last year's minimum wage increase of 6.5 percent," he said.
Iqbal said that if the specific index of 1.0 is used, then the wage increase is estimated at 7.77 percent, or at most 8.5 percent. He also denied the assumption that the minimum wage increase would lead to layoffs.
"The cause of layoffs is the decline in people's purchasing power due to low wages during the last 10 years of the previous government. And the second is regulations that put employees at a disadvantage," he said.
Iqbal claims that the specific index to be used is also proposed by business associations. On the other hand, the Labor Party demands a wage increase of 8.5 percent to 10.5 percent for next year.
Previously, Minister of Manpower Yassierli has not provided a specific figure for the specific index or the percentage of the wage hike. Currently, discussions are still ongoing at the National Wage Council and Provincial Wage Councils.
"We are getting input from labor unions and our friends in the employers' association, Apindo (Indonesian Employers Association), just wait," he said in a press conference at his office on Wednesday, November 12, 2025.
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