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View all search resultsBusinesses have urged the government to stick to the formula set out under Government Regulation No. 51/2023, which ties wage adjustments to regional economic growth, inflation and an index capturing local productivity and business capacity.
Most cases flagged through the ministry’s new labor complaints platform, Lapor Menaker, are tied to industrial relations and wages, followed by cases involving social security and working hours.
National and regional wage councils are set to play a central role in shaping the formula used to determine minimum wages for next year, unlike last year, when the President himself decided how much wages should rise.
The government has launched a drive to increase productivity as Indonesia’s labor productivity remains among the lowest in Southeast Asia, threatening long-term growth. Experts warn that red tape, weak incentives and regional disparities undermine the competitiveness of local companies.
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