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View all search resultsJakarta's minimum wage bump faces disappointed laborers
Laborers have voiced their dissatisfaction with the higher minimum wage for Jakarta next year, which stands at Rp 5.73 million (US$341), saying that the increase still falls short of meeting living standards amid rising cost of living in the capital.
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Workers wait for buses home on Feb. 6, 2024, on Jakarta's Jl. Sudirman after office hours. (Antara/Bayu Pratama S)
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aborers have voiced their dissatisfaction with the minimum wage increase for Jakarta next year, saying it still falls short of meeting living standards amid rising cost of living in the capital.
Jakarta Governor Pramono Anung announced on Dec. 24 that the 2026 provincial minimum wage was set at Rp 5.73 million (US$341), around 6.17 percent higher compared to this year’s figure, following negotiations with representatives from laborers and employers. The new wage is effective starting Jan. 1, revising the 2025 minimum wage of Rp 5.39 million.
But one of the biggest labor groups, the Confederation of Indonesian Trade Unions (KSPI), has rejected the new minimum wage for failing to meet the basic cost of living set by the Manpower Ministry, which stands at Rp 5.89 million.
While Jakarta has the highest basic living expenses in the country, the capital’s minimum wage is below its neighboring cities of Bekasi and Karawang in West Java.
KSPI chairman Said Iqbal, who also chairs the Labor Party, said in a statement on Saturday that the new minimum wage would make laborers working in Jakarta more vulnerable to poverty, considering that the living cost in the capital has been surging.
“If we use the standard cost of living [in Jakarta] of Rp 5.89 million as a benchmark, then the new minimum wage in the city, which amounts to Rp 5.73 million, is still Rp 160,000 short [...] the governor has failed to accommodate us,” he said.
The KSPI plans to stage a two-day protest in front of the State Palace on Monday and Tuesday, demanding a revision to the minimum wage to at least meet the threshold of basic living expenses.
