Dani Aswara, Jakarta – The Confederation of Indonesian Trade Unions (KSPI) has rejected the 2026 Jakarta Provincial Minimum Wage (UMP) of Rp5.73 million, arguing that it falls short of meeting the basic living needs of the city's workers.
KSPI President Said Iqbal said laborers are demanding a minimum wage of Rp5.89 million, equivalent to 100 percent of the "decent living needs" standard.
KSPI and the Labor Party reject the use of the 0.75 index in calculating Jakarta's minimum wage, which results in a monthly wage of Rp5.73 million," Said Iqbal said during a virtual press conference on Wednesday, December 24, 2025.
The announcement comes as local governments nationwide finalize the 2026 minimum wages, with December 24 being the regulatory deadline set by the Ministry of Manpower.
According to Said Iqbal, the current UMP leaves a gap of around Rp160,000 compared to laborers' demands. He also criticized the fact that Jakarta's minimum wage is now lower than industrial buffer areas such as Bekasi and Karawang, where the minimum wage has been set at around Rp5.95 million.
"The minimum wage in Jakarta cannot be lower than that of Bekasi and Karawang," he stressed.
Said Iqbal also challenged the use of government-provided incentives, such as transportation allowances, clean water, and health insurance, as part of the wage calculation.
"These incentives are not wages and are not received by all laborers in Jakarta," he said, emphasizing that such benefits cannot substitute for fair pay.
In response to the wage determination, KSPI and the Jakarta labor alliance are planning legal action by filing a lawsuit at the State Administrative Court.
The unions are also preparing a mass demonstration, expected to bring thousands of workers to the State Palace and Jakarta City Hall at the end of December or early January 2026.