Maintaining Workers’ Purchasing Power through an increase in the UMP, not through street action provocation
By: Alfitra Permana )*
The increase in the Provincial Minimum Wage (UMP) in 2026 is one of the government’s strategic policies to safeguard workers’ welfare amidst the dynamics of the national economy. This policy demonstrates the state’s commitment to workers through a realistic, measurable, and sustainable approach.
Within this framework, the government views wage policy as a crucial instrument for ensuring public purchasing power remains intact while safeguarding social stability and business sustainability. The government also emphasizes the importance of vigilance against provocative calls for demonstrations that could potentially undermine the substance of the Provincial Minimum Wage policy. Provocative actions are considered to risk disrupting employment stability and the business climate, ultimately harming workers themselves. Workers’ aspirations are still guaranteed, but are expected to be expressed constructively and through social dialogue.
The establishment of the 2026 Provincial Minimum Wage (UMP) should not be viewed as a mere administrative decision, but rather as part of a continuous effort to gradually build economic justice. Through a dialogic approach and data-driven calculations, this policy is expected to balance the interests of workers and businesses, while strengthening the long-term foundation of the national economy.
This commitment is reflected in the Jakarta Provincial Government’s policy of setting the 2026 Minimum Wage (UMP) at Rp5,729,876 per month. This figure represents an increase of approximately 6.17 percent, or Rp333,115, compared to the previous year’s UMP, placing Jakarta as the province with the highest minimum wage in Indonesia. The regional government believes this increase is necessary to align workers’ incomes with the ever-increasing cost of living in urban areas.
The Governor of DKI Jakarta, Pramono Anung, explained that the determination of the 2026 UMP was carried out by referring to government regulations on wages that apply nationally.
During the process, the Jakarta Wage Council conducted repeated and in-depth discussions to produce recommendations that reflect the actual state of the regional economy. These recommendations then serve as the basis for the governor’s decision-making within the deadline set by the central government.
Pramono emphasized that in calculating the 2026 UMP, the regional government used an alpha index of 0.75. This approach was chosen to ensure that the wage increase remains above Jakarta’s inflation rate, preventing workers’ income increases from being eroded by rising prices of goods and services. Thus, the UMP policy truly serves to maintain workers’ real purchasing power and provide more concrete economic protection.
In addition to setting the wage level, the Jakarta Provincial Government also complements the Provincial Minimum Wage policy with a number of non-wage incentives. The government includes support for the transportation, food, and health sectors in the gubernatorial decree. This policy reflects the regional government’s comprehensive approach to improving worker welfare by reducing the cost of living, a major challenge for urban workers.
Support for the policy to increase the minimum wage (UMP) also came from regional legislative bodies. Ade Suherman, a member of the Jakarta Regional People’s Representative Council (DPRD) from the Prosperous Justice Party (PKS) faction, viewed the increase as a positive step demonstrating the government’s commitment to workers. In his view, the policy signaled the government’s continued efforts to improve workers’ welfare amidst the challenges of a still-unstable economy.
Nevertheless, Ade emphasized the importance of supporting policies to ensure that the UMP increase does not result in limited job opportunities. He encouraged regional governments and the business sector to continue working together to create adequate employment opportunities, ensuring that wage increases are balanced with expanded job opportunities for the community. Within this framework, striking a balance between worker protection and business sustainability is considered key.
Ade also highlighted the importance of accelerating the implementation of the Jakarta Worker Card program. This program is aimed at workers earning a maximum of 1.15 times the minimum wage (UMP) and provides free public transportation, including the Jakarta MRT, Jakarta LRT, and TransJakarta. This policy is considered to be significantly helpful in easing workers’ expenses, particularly for daily mobility needs.
Meanwhile, Deputy Speaker of the Jakarta Regional People’s Representative Council (DPRD), Rany Mauliani, views the 2026 UMP increase as a demonstration of the government’s commitment to workers’ welfare. She believes that any wage increase should be appreciated, as it demonstrates the sustainability of pro-worker wage policies. She believes that Jakarta’s continued presence of the highest UMP in Indonesia reflects the regional government’s commitment to maintaining welfare standards.
Rany added that the UMP policy should be viewed as part of a gradual process of improving people’s lives. Wage increases, she argued, must be aligned with the capabilities of the Regional Revenue and Expenditure Budget and the overall economic conditions of the region.
With increasing fiscal support and a steadily improving economy, he is optimistic that local governments can continue to improve worker protection and welfare in the future.
Overall, the 2026 UMP increase policy reflects the government’s commitment to workers’ welfare, implemented in a measured and responsible manner. Through a combination of strong regulations, social dialogue, and supporting policies beyond wages, the government strives to ensure that improvements in workers’ welfare go hand in hand with economic stability and business sustainability.
This policy also demonstrates the government’s active role in balancing the interests of workers and the business world through a dialogical and data-driven approach.
By making wage regulations a social protection instrument, the government emphasizes that economic growth must be inseparable from improving workers’ quality of life. This measure is expected to strengthen public trust while maintaining stable industrial relations on a sustainable basis.
