Jakarta, MINA – The Confederation of Indonesian Trade Unions (KSPI) has urged the government to raise the 2026 Provincial Minimum Wage (UMP). According to KSPI President Said Iqbal, the proposed increase ranges from a minimum of 8.5 percent to a maximum of 10.5 percent.
Said explained that the proposed wage hike is in line with the Constitutional Court (MK) Ruling No. 168 of 2024, which mandates that the 2026 UMP must be higher than the previous year’s 6.5 percent increase.
“We declare that the proposed UMP increase remains at 8.5–10 percent. The argument refers to Constitutional Court Ruling No. 168/2023, which states that the adjustment of the minimum wage must take into account people’s living needs using a formula that includes inflation, economic growth, and certain indices,” Said said during a press conference in Jakarta on Monday.
He added that these variables have increased compared to the previous period. Therefore, according to KSPI, an increase in the 2026 UMP is reasonable.
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Said elaborated that one of the determining factors is the inflation rate over the past year as reported by the Central Statistics Agency (BPS). Based on the data, inflation from October 2024 to September 2025 reached 3.26 percent.
In addition, the proposed 8.5–10.5 percent wage increase also refers to economic growth data. The Labor Party President noted that economic growth during the same period reached between 5.1 and 5.2 percent.
“With 5.2 percent economic growth plus 3.26 percent inflation, the result is 8.46 percent, rounded to 8.5 percent. The maximum 10.5 percent is proposed because some provinces recorded higher economic growth than the national average,” he said.[]
Mi’raj News Agency (MINA)
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