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View all search resultsDomestic workers work long hours and do all kind of chores for low wages and have little or no legal recourse in case of harassment or abuse, as they are completely at the mercy of their employers, or “masters” in this system of modern slavery that persists in Indonesia.
The government recently announced what appeared to be encouraging news for the country’s rice sector: the introduction of a single-price policy for medium-grade rice to be implemented nationwide this year, after he hailed the achievement of self-sufficiency in rice production. While politically attractive, the promise of a uniform rice price across the archipelago warrants closer scrutiny, particularly over whether the price stabilization policy can be sustained without continued reliance on imports or a risk of added fiscal costs.
The 2026 provincial minimum wage (UMP) announcements have triggered a backlash from both labor unions and businesses. On average, minimum wages rose by more than 5 percent year-on-year (yoy) compared with 2025. However, in most provinces, the final nominal wages remain below the basic cost of living (KHL), indicating a decline in real wages. This tension unfolds amid an economic slowdown, marked by persistent layoffs in labor-intensive sectors and weak household consumption.
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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