TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Labor unions push for 15 percent minimum wage raise ahead of election
Change Size
Confederation of Indonesian Workers Unions (KSPI) chairman Said Iqbal (Center) urges the Constitutional Court on Aug. 31 to annul the Tax Amnesty Law. (JP/Winda Ayu Charmila)
L
abor unions are demanding that the government raise the minimum wage by 15 percent for next year in response to improved economic performance in the country this year, but employers contend that such a wage hike would be impossible given the business situation’s continuing precariousness.
The increase demanded was nearly twice last year’s nationwide average minimum wage hike of 7.5 percent.
Confederation of Indonesian Trade Unions (KSPI) chairman Said Iqbal told The Jakarta Post on Oct. 3 that the demand was reasonable, pointing to the government’s confidence in maintaining a much more favorable economic landscape this year.
Moreover, Indonesia has qualified for upper-middle-income status after reaching a per capita gross national income (GNI) of US$4,580 last year. The World Bank defines an upper-middle-income country as one that achieves more than US$4,466 in per capita GNI, which measures the sum of money a nation earns divided by its population.
He noted that the country had seen 5.17 percent economic growth along with a relatively stable inflation rate.
“It is only fair for workers to receive a 15 percent [minimum wage] increase,” Said argued, pointing to the growing challenges to meet higher cost of living.
Workers also pointed to President Joko “Jokowi” Widodo’s decision in August to increase the salaries of civil servants as well as military and police personnel by 8 percent starting in 2024. It was the first civil servant minimum wage raise since 2019. Meanwhile, retirees were granted a 12 percent increase in benefits.
