Dani Aswara, Jakarta – The President of the Confederation of Indonesian Trade Unions (KSPI) and leader of the Labor Party, Said Iqbal, has called on President Prabowo Subianto to raise Jakarta's 2026 provincial minimum wage (UMP) to 100 percent of the decent living cost (KHL), equivalent to Rp5.89 million.
He also requested that the provincial sectoral minimum wage (UMSP) be set at 5 percent above 100 percent of the KHL.
"The first issue we want to convey to the President is to raise the minimum wage in Jakarta to 100 percent of the KHL and the UMSP 5 percent above 100 percent of the KHL," Said Iqbal said during a labor demonstration on Jalan Merdeka Selatan, Jakarta, on Thursday, December 8, 2025.
Said proposed that any government incentives to employers should be delivered directly as cash wage subsidies to workers, citing similar approaches in Australia and Brazil. "In the form of wage subsidies, transfer cash money, like in Australia and Brazil," he said.
He rejected claims that companies in Jakarta cannot afford higher wages. According to Said, Jakarta is a hub for technology, services, and international trade, rather than a labor-intensive industrial area.
"Jakarta should not be measured by labor-intensive factories. Those have moved to Bekasi, Sukabumi, or Subang," he explained.
Said also criticized the practice of paying low wages in a city with a high cost of living.
"Already knowing this city is expensive, but paying low wages. It's not right. It's not like that in the whole world," he said, emphasizing that wages should reflect the rising cost of living in modern cities.
He urged President Prabowo to convene relevant parties or appoint someone to instruct the Governor of Jakarta to adjust the 2026 UMP to Rp5.89 million and the UMSP 5 percent above the KHL.
"The current incentive policies do not solve the problem of low wages in Jakarta. Stop this charade. Jakarta must think as an international city," Said said.