By: Andika Pratama )*
The protests against the 2026 Provincial Minimum Wage (UMP) increase that occurred in 36 provinces reflect growing public awareness of the importance of maintaining a balance between worker welfare and national economic stability. Amidst a global economic situation still shrouded in uncertainty, wage policy cannot be separated from efforts to maintain workers’ purchasing power while ensuring business continuity. The government views the 2026 UMP as a strategic instrument designed in a measurable manner, based on data, and through social dialogue mechanisms. Therefore, provocative calls for demonstrations are considered potentially counterproductive to workers’ interests.
The 2026 UMP policy is positioned within the broader framework of the state’s commitment to protecting workers from inflationary pressures and maintaining household consumption as a driving force of the economy. The central government emphasizes that wages are not solely about nominal increases, but rather about the sustainability of healthy industrial relations. Therefore, dialogue between workers, employers, and the government must be continuously strengthened to ensure that every wage decision reflects the real economic conditions of the region, without compromising social stability and the investment climate.
The establishment of the 2026 Provincial Minimum Wage (UMP) in various regions demonstrates a realistic and adaptive approach. In Jakarta, for example, the UMP was set at IDR 5,729,876 per month, an increase of approximately 6.17 percent from the previous year. The Jakarta Provincial Government, through Governor Pramono Anung, explained that the decision was made based on careful calculations by the Regional Wage Council, taking into account inflation, economic growth, and labor productivity. The use of an alpha index of 0.75 was chosen to ensure that wage increases are above the inflation rate, thus maintaining workers’ real purchasing power without creating undue pressure on the business sector.
In addition to wage adjustments, regional governments also complement these policies with various non-wage support programs. In Jakarta, the introduction of the Jakarta Worker Card, which provides free public transportation access for workers earning up to 1.15 times the UMP, demonstrates that the government is not solely focused on wages but also on reducing the burden of living costs. This policy demonstrates a comprehensive approach to improving workers’ quality of life while maintaining urban economic efficiency.
Support for the 2026 Provincial Minimum Wage (UMP) policy is also growing among regional legislative bodies. Ade Suherman, a member of the Jakarta Regional People’s Representative Council (DPRD) from the Prosperous Justice Party (PKS) faction, views the UMP increase as a manifestation of the government’s commitment to workers amidst economic challenges. He emphasized the importance of synergy between the regional government and businesses to ensure that wage policies do not reduce job opportunities. He believes that balancing worker protection and business sustainability is key to ensuring the policy’s long-term benefits are felt.
Deputy Speaker of the Jakarta DPRD, Rany Mauliani, views the UMP increase as part of a gradual process of improving public welfare. She believes the consistency of wage policies reflects the regional government’s commitment to maintaining workers’ living standards while still considering fiscal capacity and regional economic dynamics. This optimism aligns with improving economic trends and the increasingly strong fiscal space to expand social protection for workers.
Heru Tjahjono, a member of Commission IX of the Indonesian House of Representatives (DPR RI) from the Golkar Party faction, emphasized that the determination of the 2026 Provincial Minimum Wage (UMP) was based on Government Regulation Number 49 of 2025 concerning Wages. This regulation emphasizes a spirit of togetherness between the government, workers, and the business world. He believes the UMP must be understood as a realistic and equitable reflection of regional economic conditions, not simply a normative figure. A proportional increase is believed to boost people’s purchasing power and have a multiplier effect on the MSME sector and local trade, as long as it is accompanied by increased productivity.
From a business perspective, Diana Dewi, Chairperson of the Jakarta Chamber of Commerce and Industry (Kadin), reminded that business certainty is a shared interest, including for workers. She believes that demonstrations demanding excessive wage increases have the potential to disrupt the investment climate and restrict business expansion. In a stressful global situation, stability is crucial for companies to survive and absorb labor. Disruptions to business activities risk placing workers at the highest risk.
Nationally, the determination of the 2026 Provincial Minimum Wage (UMP) in most provinces demonstrates the state’s role in maintaining a balance of interests. The government, through the Ministry of Manpower, also ensuresThe wage policy is accompanied by various supporting programs, such as holiday assistance, social security contribution relief, and increased unemployment insurance benefits. These measures emphasize that workers’ welfare is inseparable from national economic stability.
Therefore, rejecting provocative demonstrations is a rational and responsible stance. The 2026 Provincial Minimum Wage (UMP) policy was designed through dialogue, data analysis, and comprehensive consideration to maintain workers’ purchasing power while ensuring business continuity. Maintaining stable industrial relations will be a crucial foundation for inclusive and sustainable economic growth, where workers, employers, and the government work in unison for the common good and long-term prosperity.
)* The author is a social observer