Workers Demand a 10 Percent Wage Increase, APINDO Central Java: It Should Be Reasonable, Around 4–5 Percent
Monday, 03 November 2025
SEMARANG — The Indonesian Employers Association (APINDO) Central Java responded to workers’ demands for a 10.5 percent increase in the provincial and municipal minimum wages (UMP and UMK) for 2026.
APINDO Central Java Chairman Frans Kongi emphasized that a realistic wage increase would be capped at around 5 percent, considering the current business climate.
“Labor union leaders may demand such a figure, and that’s their right. However, we’ll have to wait for the government’s official regulation first,” Frans said on Monday (November 3, 2025).
He explained that the minimum wage is intended for new employees, meaning existing workers already earn higher pay.
“The increase should be reasonable — after all, it’s a minimum wage meant for entry-level workers. Given the current situation, a 4–5 percent increase is fair. The overall economic condition is still not fully stable,” he added.
Labor Unions Demand an 8–10% Wage Increase for 2026
In response to labor groups’ push for new formulas to calculate the Provincial Sectoral Minimum Wage (UMSP) and Regency/City Sectoral Minimum Wage (UMSK), Frans rejected the proposal, stating that such a policy requires thorough studies and mutual agreement between labor unions and employers.
“It’s better not to have UMSP and UMSK at this stage. These require in-depth research and can’t be generalized across sectors. Let’s hold off on that for now,” he remarked.
Labor Protest and Provincial Government’s Response
Earlier, hundreds of workers under the Central Java Workers Alliance (Abjat) staged a protest in front of the Central Java Governor’s Office on Wednesday (October 22, 2025), demanding at least a 10.5 percent wage increase for the 2026 UMP and UMK.
The Central Java Provincial Government stated that the new regulation from the central government, which will serve as the legal basis for determining the minimum wage, has not yet been issued. Although workers were received for a formal dialogue, the government could not guarantee a wage increase.
Head of the Central Java Manpower and Transmigration Office (Disnakertrans), Ahmad Aziz, explained that the formula for setting the minimum wage is still under discussion at the Ministry of Manpower, in coordination with the National Wage Council and the National Tripartite Forum.
“The regulation hasn’t been finalized yet, and the central government will make the decision. We can’t confirm the mechanism because it’s still being discussed and reviewed by the Ministry,” Aziz said after the meeting with labor representatives.
He added that the ongoing discussion follows the Constitutional Court Ruling No. 168/2023, which mandates that wage determination must take into account inflation, economic growth, certain indices, the cost of living, and company capability.
“Our colleagues at the national level have assured that the new regulation will comply with the Constitutional Court’s ruling and balance the interests of workers, employers, and the government,” Aziz concluded.
Source: kompas.com
