“The process is still ongoing, with us formulating a concept. In other words, we are currently studying the proposed UMP rise,” he told reporters on the sidelines of the Indonesia International Sustainability Forum 2025 in Jakarta on Saturday.
Yassierli assured the public that the government has been gathering input from various stakeholders, particularly labor unions and the business community.
“It should be noted that we are engaged in dialogue with the public to accommodate the aspirations of workers and employers. Moreover, the National Wage Council has begun holding related meetings,” the minister stated.
He expressed confidence that the government would conclude the discussions in time to issue a decision or regulation on the wage adjustment, emphasizing the need to balance differing interests.
“We have numerous aspects to consider, including regulatory matters,” Yassierli said, referring to the Constitutional Court (MK) Decision No. 168 of 2023 concerning the minimum wage regulation framework.
The verdict requires the government to take into account inflation rates, economic growth, and the need to ensure workers’ welfare when setting the UMP.
“Adhering to the MK’s decision is paramount. Only then can we determine what is best for Indonesia,” the minister remarked.
Previously on August 11, Confederation of Indonesian Trade Unions (KSPI) President Said Iqbal proposed raising the UMP by up to 10.5 percent next year.
In response, Minister Yassierli said further review is necessary to assess the feasibility of the proposal.
“A 10.5-percent hike may be a bit too fast, but we take note of the expectations and suggestions,” he said on Wednesday (October 8).
The following day, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government had begun reviewing the proposal, following a 6.5-percent increase in 2025.
“The UMP for next year is currently being processed,” he stated, noting that the 2025 increase was part of the government’s economic achievements over the past year.
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Translator: Arnidhya N, Tegar Nurfitra
Editor: M Razi Rahman
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