By: Bahrul Anam *)
Amidst the challenges of the global economy, the Indonesian government under the leadership of President Prabowo Subianto has shown a strong commitment to improving workers’ welfare through various strategic policies that have received a positive response from various labor elements. The momentum of International Labor Day on May 1, 2025, is an important event to emphasize broad support for the government’s efforts to build more equitable workers’ welfare.
One of the real steps taken by the government is to increase the national minimum wage by 6.5 percent for 2025. This increase is seen as a real form of the state’s support for workers in maintaining purchasing power amidst inflationary pressures. President Prabowo has emphasized on various occasions the importance of protecting and improving the welfare of workers as an integral part of national development. Support for this step came from various labor unions, including the Confederation of Indonesian Trade Unions (KSPI) and the Federation of Indonesian Aspect Trade Unions (FSP ASPEK Indonesia), who considered the wage increase as a form of real government support for the working people.
Furthermore, the government also launched a subsidized housing program that was inaugurated to coincide with the commemoration of Labor Day. This program was initiated by the Ministry of Housing and Settlement Areas in collaboration with the Ministry of Manpower and the Central Statistics Agency. Heru Pudyo Nugroho from BP Tapera said that this program expands workers’ access to decent housing, an important step considering that many lower-middle income workers previously had difficulty in achieving home ownership. By providing three million subsidized housing units, the government is trying to make the right to decent housing no longer just a dream, but an affordable reality for workers.
The government also showed sensitivity to the threat of global uncertainty by forming a Task Force for the Prevention of Termination of Employment (Satgas PHK). This task force works collaboratively with labor unions, BPJS Ketenagakerjaan, and the private sector to maintain employment stability. This step is considered strategic, considering that global dynamics such as trade tariff policies from other countries have the potential to cause a wave of layoffs. Labor unions such as KSPI and FSP ASPEK welcomed the formation of the Task Force, considering it a form of state presence in providing a sense of security to workers amidst uncertainty.
Support for government policies does not stop there. The government also allocated food assistance in the form of 10 kilograms of rice per month for 16 million recipients during the first two months of this year, as well as providing a 50 percent discount on electricity bills for small household customers. In addition, the optimization of the Job Loss Guarantee program from BPJS Ketenagakerjaan provides additional guarantees in the form of cash benefits, job training, and access to job market information for workers affected by layoffs. All of these initiatives strengthen the foundation of social protection that is so needed by workers.
The President of the Labor Party, Said Iqbal, revealed that the majority of Indonesian workers, around 95 percent, support President Prabowo’s policies. In a press conference ahead of the Labor Day commemoration, he assessed that policies such as wage increases, the formation of the Layoff Task Force, and the subsidized housing program show the President’s support for the fate of workers. President Prabowo’s planned presence at the 2025 May Day celebration at Monas is also interpreted as real evidence that the government is listening to the aspirations of the working people directly.
A similar stance was also voiced by the Confederation of Indonesian Prosperous Trade Unions (KSBSI), which continues to highlight various employment challenges, but at the same time affirms its commitment to supporting positive government steps. KSBSI Secretary General Dedi Hardianto said that his party will continue to encourage the government to open up space for dialogue in drafting employment laws that better protect workers. He emphasized the importance of collaboration and active participation of workers in the legislative process, with the hope that future policies will further strengthen the position of workers.
Indeed, a number of issues are still of serious concern, such as the need for strict supervision of the implementation of minimum wages and normative workers’ rights, including informal sector workers. However, labor elements in principle support the government’s inclusive and social justice-based approach. They hope that the partisanship that has been shown will continue to be maintained through strengthening the monitoring mechanism and consistency of policy implementation in the field.
The government’s steps in strengthening vocational training programs and economic digitalization have also received appreciation, as they are seen as long-term investments to improve the competitiveness of the Indonesian workforce at the global level. Workers recognize the importance of improving competencies in the era of digital transformation and welcome programs designed to expand their skills in various strategic sectors.
The overall support from various labor elements is a strong indication that the direction of the government’s strategic policy is on the right track. President Prabowo’s courage to attend the May Day celebration in person, his support for wage policies, provision of subsidized housing, formation of the PHK Task Force, and the launch of various social protection and competency development programs show the seriousness in building sustainable worker welfare. With close cooperation between the government, workers, and employers, Indonesia is getting closer to the ideal of realizing worker welfare as the main pillar of fair and equitable national development.
*) NGO activist/Marginal Workers Communication Forum)
