By: Bara Winatha*)
The 2026 Provincial Minimum Wage (UMP) increase policy has once again attracted public attention in various regions. On the one hand, the government views the policy as a concrete step to safeguard workers’ welfare amidst inflationary pressures and national economic dynamics. On the other hand, some labor groups are still expressing objections and pursuing further demands through demonstrations. The government has also reaffirmed its commitment to providing the widest possible space for aspirations, with the hope that the expression of opinions will be conducted peacefully, orderly, and without violating any rules.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the determination of the 2026 UMP has gone through a thorough and comprehensive formulation process. The government has considered various important indicators such as the inflation rate, national and regional economic growth, and workers’ living needs in each region. He explained that the UMP serves as a basic safety net to ensure workers maintain adequate purchasing power amid rising prices for goods and services.
The 2026 Provincial Minimum Wage (UMP) is a crucial instrument for improving worker welfare while maintaining business balance. The government has raised the alpha index for minimum wage increases to a more favorable range than in previous years. This measure is intended to ensure wage adjustments can offset rising prices of basic necessities without causing shocks to the business sector, particularly labor-intensive industries. The UMP is indeed set as a minimum standard, so businesses are still encouraged to implement a productivity-based wage system so that worker welfare can improve in line with company performance.
Furthermore, Airlangga explained that in certain economic regions, sectoral minimum wages can even exceed the UMP. This depends on industry characteristics, productivity levels, and the capabilities of companies in those regions. The government understands that conditions vary across regions, so wage policies cannot be rigidly standardized. Therefore, dialogue between local governments, employers, and labor unions remains a crucial element in determining policies that best suit local conditions.
However, the establishment of the 2026 UMP in several regions has drawn opposition from workers, who have expressed their aspirations through demonstrations. Police officers play a crucial role in ensuring that the expression of workers’ aspirations proceeds safely and orderly. Central Jakarta Metro Police Chief, Senior Commissioner Reynold E.P. Hutagalung, stated that the presence of security forces at the labor demonstration aims to guarantee the public’s constitutional right to express their opinions in public. Security is not intended to restrict freedom of expression, but rather to ensure the event proceeds peacefully and does not disrupt public order.
Reynold explained that thousands of joint personnel were deployed to secure the labor demonstration in the Central Jakarta area. All personnel have been instructed to prioritize a humane, persuasive, and professional approach. He emphasized that officers on the ground are not equipped with firearms as a commitment to maintaining a conducive atmosphere. This approach is taken to ensure that protesters feel safe expressing their aspirations, while also ensuring that the surrounding community can continue their activities comfortably.
In his statement, Reynold also appealed to protesters to comply with applicable laws. He emphasized the importance of expressing opinions in an orderly manner, without provocation, and to avoid actions that could harm the public interest, such as road closures, destruction of public facilities, or other anarchic acts. Freedom of expression must be exercised responsibly to avoid violating the rights of others. He also called on all elements of labor, officials, and the community to work together to maintain a safe and conducive situation.
From a regional perspective, Lampung Provincial DPRD Member Yusnadi offered a more moderate view of the policy of increasing the Provincial Minimum Wage (UMP). He stated that the UMP increase represents the state’s effort to maintain workers’ dignity so that their incomes can increasingly meet a decent standard of living. He believes that amidst inflationary pressures and rising prices of basic necessities, this policy signals the state’s commitment to protecting workers’ purchasing power.
The UMP increase has a positive impact on the regional economy. He explained that wage increases can directly boost household consumption, which has been the mainstay of regional economic growth. With improved purchasing power, the trade, services, and micro, small, and medium enterprises (MSMEs) sectors have the potential to grow. In his view, if managed well, the UMP policy can become aan effective economic stimulus at the regional level.
As a legislator, Yusnadi also emphasized his commitment to carrying out his oversight function to ensure the implementation of the Provincial Minimum Wage (UMP) is fair and proportional. He encouraged the opening of ongoing dialogue between workers, employers, and local governments. Dialogue is key to mitigating potential conflict and finding joint solutions to wage issues. The main principles that must be upheld are worker protection, business growth, and regional economic sustainability.
Overall, the government considers the 2026 UMP increase policy to be a pro-worker measure that still prioritizes national economic stability. The government understands the aspirations and continued demands of workers but hopes that these aspirations will be expressed peacefully and without violence. Security forces are committed to safeguarding freedom of expression with a humane approach, while regional stakeholders are encouraging dialogue and supporting policies to ensure the optimal impact of the UMP increase.
*) The author is a social and community observer.