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 setting of West Java's 2026 Provincial Minimum Wage (UMP) has drawn sharp criticism from labor unions. KSPSI West Java Chairman Roy Jinto stated that the Rp 2,317,601 figure relies on a 0.7 percent alpha index, the lowest in Indonesia. "Serikat pekerja di Jawa Barat menolak penetapan upah minimum UMP Jawa Barat... because the governor only set UMP West Java at Rp 2.3," Roy said on December 27, 2025.
He highlighted that the living needs standard (KHL) for West Java, per ILO and Ministry of Manpower agreements, stands at Rp 4.1 million. Additionally, proposals for sectoral minimum wages (UMS) in seven districts/cities were rejected, while 12 others deviated from regents' and mayors' suggestions. Unions threatened large-scale demonstrations in response to this perceived injustice.
Nationally, UMP 2026 follows Government Regulation No. 49 of 2025 on Wages, using the formula of inflation plus (economic growth times alpha index of 0.5-0.9). Coordinating Minister for the Economy Airlangga Hartarto defended the approach while addressing worker protests, including in Jakarta where UMP is Rp 5,729,876 yet below KHL. "UMP is the minimum wage that has been decided, with its formula," Airlangga said on December 26, 2025, in South Jakarta.
Airlangga noted that UMP applies to new workers, with wages in special economic zones often higher, and urged businesses to raise pay based on productivity. Reactions vary; in Central Java, the Indonesian Employers Association (Apindo) expressed disappointment over a 7.28 percent UMP increase using alpha 0.9, seen as hindering labor-intensive investments. "We are deeply disappointed," said Apindo Central Java Chairman Frans Kongi.
The determinations take effect January 1, 2026, with provincial variations: Central Java lowest at Rp 2,317,386, DKI Jakarta highest at Rp 5,729,876. These protests underscore tensions between worker protection and economic competitiveness.
