Erfan Maruf, Jakarta – The Indonesian Trade Union Confederation, or KSPI, has expressed disappointment over Jakarta's 2026 minimum wage hike, as workers feel that Rp 5.73 million (around $340) is not enough to make a decent living.

The Jakarta government recently announced a 6.17% increase in the minimum wage for next year. KSPI and Labor Party chair Said Iqbal said that it would be impossible for Jakartans to live on Rp 5.73 million. The Manpower Ministry has set the decent living index at Rp 5.89 million a month. This index is the monthly standard of living for workers and their families to live decently. In other words, there is a Rp 160,000 gap to the 2026 wage.

"The Rp 160,000 difference is significant for workers. They can use that money for food, transportation, and other basic needs." Said told a press conference on Thursday.

The minimum wage is also a small fraction of the cost of living in Jakarta. According to the Central Statistics Agency (BPS), the monthly cost of living for a small family in Jakarta can reach Rp 15 million.

The Jakarta government revealed plans to provide incentives for workers. This includes letting them ride on Jakarta's public transportation system for free. The facilities also encompass health insurance coverage through BPJS Kesehatan for workers not covered by their employers, as well as subsidies for clean water services provided by PAM Jaya.

According to KSPI, all these subsidies are not part of the wage. Said went on to say that the incentives have a limited quota as they largely depend on the regional government budget.

"There are over one million workers in Jakarta. It's impossible for all of them to receive these incentives. So it's not a solution," Said remarked.

Source: https://jakartaglobe.id/business/2026-minimum-wage-not-enough-to-live-decently-in-jakarta-unio