Indonesia Manpower Minister links 2027 wage hike to new labor bill

Indonesian Minister of Manpower Yassierli stated that the formulation for the 2027 minimum wage increase is pending the finalization of the Labor Protection Bill (RUU Pelindungan Ketenagakerjaan). The minister noted that the new legislation will serve as the primary legal basis for calculating wage increases, including how factors such as inflation are determined.

This development follows proposals from labor groups, including KSPI and Partai Buruh, which have requested a minimum wage increase of between 7.5% and 9.5% for 2027. These groups cited regional differences in inflation and economic growth as justifications for the hike. The government is currently working with the DPR RI to process the bill, which is part of the National Legislation Program, and is accepting input from both labor and industrial stakeholders.