Beware of Provocative Labor Demonstrations: The Minimum Wage Increase Will Maintain Public Purchasing Power
Jakarta – The government has reminded all stakeholders to be aware of potential provocations in the series of labor demonstrations accompanying the determination of the 2026 Provincial Minimum Wage (UMP). Social and employment stability are considered important prerequisites for the sustainability of national economic recovery.
On the other hand, the 2026 UMP increase policy is emphasized as a manifestation of the state’s commitment to maintaining workers’ purchasing power. Wage adjustments are made through calculations that take into account inflation, economic growth, and productivity, to ensure they remain aligned with the capabilities of the business sector.
To date, most provinces have established the 2026 UMP. The government hopes this policy will improve workers’ welfare while maintaining a conducive business climate, with aspirations channeled in a dialogue and constructive manner.
Member of Commission IX of the Indonesian House of Representatives from the Golkar Party faction, Heru Tjahjono, assessed that the 2026 UMP policy has a strategic role in maintaining this balance.
“This policy is considered strategic in protecting workers’ welfare while maintaining business continuity amidst global economic challenges,” said Heru Tjahjono.
He emphasized that the determination of the 2026 UMP must be based on Government Regulation (PP) Number 49 of 2025 concerning Wages which was drafted in a spirit of togetherness between the government, workers, and the business world.
According to him, UMP should not be interpreted narrowly as an administrative figure.
“UMP should not be understood merely as an administrative figure,” he said.
The Regent of Tulungagung for the 2003–2013 period added that a proportional increase in the UMP has the potential to boost people’s purchasing power, especially for minimum wage workers.
This increase in purchasing power is believed to be able to stimulate household consumption and provide a multiplier effect for the MSME, trade, and local service sectors.
At the regional level, the Governor of DKI Jakarta, Pramono Anung, announced an increase in the 2026 Jakarta UMP to Rp5,729,876.
“It has been agreed to increase the Jakarta UMP in 2026 by Rp 5,729,876, compared to the previous UMP of Rp 5,396,761, representing a 6.17 percent increase,” Pramono said.
He explained that the determination refers to PP Number 49 of 2025 with an alpha index of 0.75.
“In the Wage Council meeting, it was decided to set the 2026 UMP based on an alpha of 0.75. This means the UMP will certainly increase and be above the inflation rate in Jakarta,” he said.
Meanwhile, Central Java Governor Ahmad Luthfi emphasized that the determination of the minimum wage in his region takes into account the balance between worker protection and business sustainability.
“We want to ensure that workers are protected, purchasing power is maintained, and the investment climate remains healthy,” said Ahmad Luthfi.
