Politics · Indonesia · 3 hrs ago

Jakarta’s 2027 Minimum Wage Talks Set to Begin on November 9

Jakarta’s 2027 Minimum Wage Talks Set to Begin on November 9

Jakarta’s 2027 minimum wage talks begin on November 9, when the provincial wage council holds its first meeting.

Employers want the formula’s alpha value, which affects the size of wage increases, to be no higher than 0.5.

They estimate that an alpha of 0.5 could raise production costs by 20% to 30%, and say wage decisions should also consider business costs and productivity.

Labor representatives reject the employers’ proposal and want the alpha value to be above 0.9, with 1 as their minimum, citing weak economic conditions and pressure on workers’ purchasing power.

The first meeting will consider which sectors qualify for separate provincial sectoral minimum wages, not decide the overall increase.

The discussion is expected to use the 2025 wage regulation, but workers’ representatives are waiting to see the official text of a newly passed employment protection law that could affect the wage formula.

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What people are saying

NurjamanJakarta employer representative on the Wage Council
From the employers, we hope the alpha is below 0.5. The hope is below 0.5. At most, 0.5.
via CNBC Indonesia
Tri WidyantoLabor representative on the Wage Council
We strongly reject the employers’ proposal to give an index of only 0.5, because the current economic conditions are very concerning and workers’ purchasing power has been directly affected by the weak economy.
via CNBC Indonesia
Our hope is that the index should be more than 0.9 as set out in Government Regulation 49/2025. The minimum should be 1, as we previously told the DPR in the draft of the new Employment Law.
via CNBC Indonesia