December 26, 2025 | 03:30 pm
TEMPO.CO, Jakarta - Indonesia’s labor unions have criticized the 2026 provincial minimum wage (UMP) announced by several regional governments, arguing that the increase falls short of meeting workers’ real living costs amid persistently rising prices.
Mirah Sumirat, president of the Association of All Indonesian Labor Unions (ASPIRASI), said the wage adjustment does not reflect the rapid increases in essential expenses.
“Food prices, basic necessities, healthcare, transportation, and education costs continue to rise, while government control over these prices remains very weak,” she said in a written statement on Friday, December 26, 2025.
Regional leaders across Indonesia have announced the 2026 UMP based on the latest wage calculation formula stipulated in Government Regulation No. 49 of 2025.
However, Mirah said the increases lag behind the actual growth in living costs, shifting the core issue from wage levels to the government’s ability to manage inflation and the cost of daily necessities.
According to Mirah, wage policy cannot stand alone without strong supporting measures. She stressed that both central and regional governments must implement concrete policies, including stabilizing food and commodity prices, ensuring affordable healthcare and education, and improving access to decent public transportation for workers.
“If the government does not seriously control the prices of basic needs, then the minimum wage increase will remain merely a number on paper and will not genuinely improve workers’ welfare or purchasing power,” she said.
Mirah also called for a comprehensive review of Indonesia’s national wage policy, with labor unions meaningfully involved in the decision-making process. She expressed hope that future minimum wage policies would better reflect the cost of achieving a decent standard of living for workers.
Previously, Manpower Minister Yassierli defended the 2026 UMP formula, describing it as the most balanced approach currently available.
The government applies a specific index with an alpha range of 0.5 to 0.9 to determine annual wage increases.
“We believe our colleagues in labor unions and the business community can accept this formula, as there are many other responsibilities we must address together,” Yassierli said during a meeting at the Jakarta Creative Hub on Thursday, December 18, 2025.
Yassierli said the government had demonstrated its support for workers by raising the minimum wage by 6.5 percent in the previous year, providing housing subsidies to more than 200,000 beneficiaries, and distributing wage subsidies to 15,000 workers.
In addition, he said the government is finalizing regulations for the Job Loss Guarantee (JKP) program, which would ensure that laid-off workers receive 60 percent of their wages for up to six months.
The 2026 UMP decision, he added, had been discussed with multiple stakeholders, including labor unions and employer groups, to accommodate a range of interests.
Read: 2026 Minimum Wage: The Standard for Decent Living Needs
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