West Java Governor Dedi Mulyadi to Finalize 2026 Minimum Wages Amid Union Demands

Following President Prabowo Subianto's signing of the national minimum wage regulation on December 16, 2025, West Java Governor Dedi Mulyadi will announce the provincial minimum wage (UMP) and regency/city minimum wages (UMK) for 2026 on December 24. Negotiations continue with unions pushing for higher increases to address disparities, while employers seek balance.

Governor Dedi Mulyadi is set to sign the 2026 UMP, UMK, and sectoral wages on Wednesday, December 24, 2025, in Bandung, after final negotiations by the West Java Provincial Manpower Office with unions, employers, and experts.

"On the 24th, I will sign it; today we're still finalizing," Dedi said on December 23.

This follows the national Government Regulation signed by President Prabowo, which sets the wage increase formula as inflation plus economic growth multiplied by an alpha factor of 0.5-0.9, fulfilling Constitutional Court Decision No. 168/PUU-XXI/2023.

The Provincial Wage Council met on December 19 at Gedung Sate, accommodating union and Apindo proposals. Unions demand an average UMK of Rp3,589,619 (noting 2025 disparities from Rp2.2M in Banjar to Rp5.7M in Bekasi), proposing UMP at Rp3,833,318 and UMSP at Rp3,870,004, citing the court ruling and ILO living needs studies. They criticize the formula's limited impact on disparities.

Apindo urges alpha 0.5 for a 4.745% increase, emphasizing employer contributions and business sustainability.

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West Java workers protest low 2026 minimum wage proposal of Rp 2.3 million, holding signs threatening massive demonstrations.
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West Java workers reject 2026 minimum wage of Rp 2.3 million, threaten large protest

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West Java labor unions have rejected Governor Dedi Mulyadi's setting of the 2026 Provincial Minimum Wage (UMP) at Rp 2,317,601, deeming it far below living needs. They threaten massive demonstrations over the use of a mere 0.7 percent alpha index. The central government defends the calculation formula that factors in inflation and regional economic growth.

The Jakarta provincial government has set the 2026 Provincial Minimum Wage (UMP) at Rp5,729,876, a 6.17% increase. Labor unions, however, reject the decision and plan to file a lawsuit at the State Administrative Court (PTUN) while organizing protests. Governor Pramono Anung promised additional incentives for workers and businesses.

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Thousands of workers protested at Jakarta's Presidential Palace on December 29-30, 2025, against the recently announced 2026 Provincial Minimum Wage (UMP) of Rp5,729,876—a 6.17% increase deemed insufficient by unions. Led by KSPI President Said Iqbal, the two-day action drew heavy police security amid guarantees of free expression.

Following stalled talks where unions demanded a 16% rise and businesses warned of economic risks, President Gustavo Petro decreed on December 30 a 23% increase in Colombia's 2026 minimum wage, to 1,750,905 pesos plus 24.5% higher transportation aid of 249,095 pesos, totaling 2 million pesos monthly. The hike benefits 2.4 million formal workers and aims for an ILO 'vital wage,' but prompts debate on inflation, SME impacts, and competitiveness.

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The Central Unitaria de Trabajadores (CUT) valued Interior Minister Armando Benedetti's proposal for a 12% increase in the 2026 minimum wage but urged the government to get closer to the 16% sought by unions. CUT president Fabio Arias made this direct appeal to President Gustavo Petro. Negotiations continue with key dates from December 22 to 30.

The Autonomous Fiscal Rule Committee (Carf) warns that the recent 23% minimum wage hike to $2 million—decreed on December 30—could cost $5.3 trillion in 2026 (0.3% of GDP), complicating fiscal sustainability. Labor Minister Antonio Sanguino announced plans to desindex key goods from the wage and provide SME relief to curb inflation.

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Indonesia's government has raised the KUR credit ceiling to Rp320 trillion for 2026, removing loan frequency limits and setting a flat 6% interest rate. UMKM Minister Maman Abdurrahman reaffirmed that applications for KUR under Rp100 million require no collateral, while acknowledging some banks still demand it.

 

 

 

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