Andrew Tito, Jakarta – The Confederation of Indonesian Trade Unions (KSPI) and the Labor Party on Monday submitted several proposals to the government for the 2026 provincial minimum wage (UMP), ranging from 6.5 percent to 10.5 percent.

KSPI president and Labor Party chairman Said Iqbal cautioned the government against using a wage-calculation index that he says underestimates workers' living costs. If the increase is set too low, he warned, workers nationwide will launch a large-scale strike.

Iqbal said labor groups across Indonesia are preparing for a national strike expected to take place between the second and fourth week of December 2025.

"This national strike will involve 5 million workers from more than five thousand companies across over three hundred regencies and cities," Iqbal said in a statement.

The Labor Party's proposal sets different wage-increase options based on ongoing inflation and regional economic growth.

The highest proposed increase – 10.5 percent – would apply to provinces with economic growth far above the national average. Iqbal cited North Maluku, which has recorded more than 30 percent economic growth in recent years due to rapid expansion in nickel processing and downstream mineral industrialization.

Minimum wage determination has long been a point of tension between labor groups, employers, and the government.

Government decisions are commonly based on a Government Regulation (PP) formula that incorporates inflation and economic growth variables – a method frequently criticized by unions for producing wage increases considered too small relative to rising living costs.

The government is currently preparing a revision of the 2021 wage regulation, following a Constitutional Court ruling ordering changes that prioritize fairness and ensure a decent standard of living for workers.

Source: https://jakartaglobe.id/news/labor-party-proposes-minimum-wage-increase-of-up-to-105-for-202