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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.
Former deputy manpower minister Immanuel Ebenezer has admitted to the Corruption Eradication Commission (KPK) his wrongdoing in an alleged extortion case pertaining to occupational safety and health certification in the Manpower Ministry.
The arrest of former deputy manpower minister Immanuel Ebenezer Gerungan in a corruption case could mark a turning point for President Prabowo Subianto’s new administration, testing his anticorruption drive while giving him an opening to refresh his cabinet.
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