Politics · Indonesia · 1 hr ago
Indonesia’s 2027 Minimum Wage Decisions Delayed
Indonesia has not set provincial minimum wages for 2027, which are due to take effect on January 1.
Labor leader Said Iqbal says the delay is because the new National Wage Council has not been formed and the government has not surveyed living costs.
The previous council’s term ended about a month ago, leaving no national forum to discuss or recommend wage levels.
District and city wage decisions are due by November 20, while provincial decisions should have been set by November 1, according to Iqbal.
The government also faces a choice between two rules for calculating increases, with one requiring a survey of 64 household needs that has not been carried out.
The KSPI labor federation proposes increases of 7.5% to 9.5%, while Iqbal’s national average estimate using its formula is 8.05%.
The federation is urging the government to form the council and start talks, and some member groups are planning protests over the negotiation schedule.
Indonesia had not set provincial minimum wages for 2027 by November 3, 2026, despite a stated November 1 deadline.
Said Iqbal of the Indonesian Trade Union Confederation said the delay stemmed from the absence of a newly formed National Wage Council and a government survey of decent living needs.
The council’s 2022–2026 members had completed their terms about a month earlier, and no new membership had been appointed.
The labor group also questioned which rule the government would use to calculate wage increases.
It proposed increases of 7.5% to 9.5% for provincial, district and city, and sectoral minimum wages.
- Who
- Indonesia’s government has not set the 2027 minimum wages; Said Iqbal, president of the Indonesian Trade Union Confederation and the Labour Party, described the delay.
- What
- Decisions on 2027 minimum wages were delayed. The union group proposed increases of 7.5% to 9.5%.
- When
- As of November 3, 2026. The provincial minimum wage deadline was November 1, according to Iqbal.
- Where
- Indonesia.
- Why
- Iqbal said the new National Wage Council had not been formed and the government had not conducted a survey of decent living needs.
This story does not have two clearly opposing sides.
The Indonesian parliament and government passed the new Employment Protection Law.
The terms of the National Wage Council’s 2022–2026 members had ended.
The provincial minimum wage was due to be set, according to Iqbal.
Iqbal said the 2027 provincial minimum wage had not been set and the new National Wage Council had not been appointed.
The stated deadline for setting district/city and district/city sectoral minimum wages.
- Provincial wage deadline
- November 1, 2026
- District/city wage deadline
- November 20, 2026
- National Wage Council
- 2022–2026 members’ terms had ended; new membership not appointed
- Proposed wage increase
- 7.5% to 9.5%
- Proposed calculation figures
- Inflation of 3.20%; average national economic growth of 5.43%; index of 0.9
What people are saying
Who is the Minister of Manpower supposed to invite to a meeting?
The survey has never been conducted.
We propose that the increase in the 2027 provincial minimum wage, the 2027 district/city minimum wage, and the sectoral minimum wage be 7.5 percent to 9.5 percent.