Indonesia’s internal government discussion on the 2027 provincial minimum wage, known as UMP, is targeted for completion by the end of November 2026, Manpower Minister Yassierli said in Jakarta on Tuesday. He said a proposed 9.5 percent increase remains under consideration.
The final call on wage increases rests with governors, who will weigh input from provincial wage councils. Yassierli said the decision had not yet been made.
Unions push for earlier decision
The Konfederasi Serikat Pekerja Indonesia (KSPI) and Partai Buruh have proposed a 2027 minimum wage rise of between 7.5 and 9.5 percent. They want UMP and sectoral minimum wages set on 1 November 2026.
KSPI and Partai Buruh have planned protest actions for 15 to 30 October 2026. Said Iqbal, president of both organisations, said workers’ demands fall within the 7.5 to 9.5 percent range.
Reasons cited for the demand
The unions cite inflation, economic growth and an index at the upper limit of the wage formula. They also link their demand to weaker export demand, rising energy and production costs, and falling domestic purchasing power. Some parent companies are relocating production, they add.
The Ministry’s review through the National Wage Council and the LKS Tripnas will determine whether new rules are needed. Yassierli said existing provisions are substantively sufficient.
