[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 16 sources · 7 days · First seen · Last updated

Indonesian labor minimum wage proposals

Overview

Indonesian labor organizations have begun proposing minimum wage increases for 2027. The Confederation of Indonesian Trade Unions (KSPI) and the Labor Party proposed a hike of 7.5% to 9.5%, citing inflation and economic growth data from late 2025 and 2026. This coalition also intends to advocate for the Labor Protection Bill and changes to outsourcing and severance regulations through demonstrations and constitutional channels.

Following this, Mirah Sumirat, President of the All Indonesia Workers Union Association (ASPIRASI), proposed a 10% increase. ASPIRASI suggested a new calculation model based on inflation, economic growth, and Decent Living Standard (KHL) market surveys rather than the alpha coefficient. The union emphasized that controlled inflation is necessary to protect worker purchasing power as the government and parliament continue drafting new labor laws.

Entities

Labor Party · Confederation of Indonesian Trade Unions · Indonesia · Aspirasi · IPPFA Sdn. Bhd.

Timeline

  1. 3 days ago

    [BUSINESS] 2 sources
    ASPIRASI proposes 10% increase for Indonesia's 2027 minimum wage

    ASPIRASI President Mirah Sumirat has proposed a 10% increase for Indonesia's 2027 minimum wage, suggesting a formula based on inflation and economic growth rather than the alpha coefficient.

  2. 10 days ago

    [BUSINESS] 14 sources
    Indonesian labor unions propose 7.5-9.5% minimum wage hike for 2027

    Indonesian labor unions have proposed a 7.5% to 9.5% minimum wage increase for 2027, planning nationwide demonstrations in October to advocate for the hike and broader labor law reforms.

Sources

antaranews.com · bantenraya.com · cnbcindonesia.com · denpasar24.com · dutatv.com · halosemarang.id · insight.kontan.co.id · kabartarakan.com · katadata.co.id · medcom.id · okezone.com · riliskalimantan.com · suarainvestor.com · time.news · utusan.com.my · world-today-journal.com