Alfitria Nefi Pratiwi, Jakarta – Chairperson of the All-Indonesia Workers Union Association (Aspirasi), Mirah Sumirat, has criticized the formula for determining the provincial minimum wage (UMP) for 2026, arguing that it does not guarantee workers and their families a decent standard of living.
She noted that basing the wage calculation on macroeconomic indicators alone fails to reflect the real cost of living for workers.
Her remarks came in response to the announcement by Minister of Manpower Yassierli on Tuesday, December 16, 2025, that President Prabowo Subianto had approved the UMP 2026 formula as inflation plus economic growth multiplied by an alpha factor, with the alpha index set between 0.5 and 0.9.
Mirah highlighted Constitutional Court Decision Number 168 of 2023, which mandates that minimum wage calculations must incorporate the principles of decent living needs, justice, and humanity.
She also criticized the delay in setting the wage policy, which was expected to be determined in November 2025.
"The extended discussion process should result in fairer policies for workers. However, the final wage increase remains minimal and falls far short of laborers' expectations," she said.
Mirah warned that delegating the determination of UMP to regional governments could trigger dissatisfaction and protests across the country, potentially affecting industrial relations and the national labor climate.
She urged the government to review the minimum wage formula to ensure it meets decent living standards, control the prices of basic goods and essential services so that wage increases are not eroded by inflation, and involve labor unions meaningfully in all wage policy decisions.
According to Mirah, without these measures, wage policies risk widening inequality and creating industrial conflicts. She emphasized that future wage regulations should promote justice, certainty, and prosperity for workers while maintaining harmonious and sustainable industrial relations.
Minister Yassierli has asked governors to finalize the minimum wage increase no later than December 24, 2025. The latest government regulation obliges governors to determine the provincial minimum wage (UMP) and allows them to also set the district/city minimum wage.
Governors are additionally responsible for setting the provincial sectoral minimum wage and may also determine the district/city sectoral minimum wage.
"This policy by President Prabowo reflects the government's commitment to implementing Constitutional Court Decision Number 168/2023," Yassierli said, as quoted by Antara.
The Constitutional Court (MK) has instructed the legislature and the government to create a new labor law, separate from Law Number 6 of 2023 on Job Creation, within two years. The court emphasized that labor unions and workers must be actively involved in the drafting process.
"The wage regulation process has undergone extensive study and consultation, and the results have been reported to President Prabowo," Yassierli added.