Labour Unions Demand 9.5 Per Cent Wage Increase for 2027, Prepare for October Protests

The Confederation of Indonesian Trade Unions (KSPI) and the Labour Party have proposed a minimum wage increase of 7.5% to 9.5% for the year 2027. This proposal applies to both Provincial Minimum Wages (UMP) and Regency/City Minimum Wages (UMK), taking into account the differences in inflation and economic growth across various regions.

President of KSPI and the Labour Party, Said Iqbal, stated that the proposal needs to be presented to the government early. This is because the 2027 UMP is scheduled to be determined on 1 November 2026, while the UMK and sectoral minimum wages are scheduled for determination on 10 November 2026.

“KSPI and the Labour Party propose that the 2027 minimum wage increase, for both UMP and UMK, falls within the range of 7.5 per cent to 9.5 per cent. We will fight for this figure within the Wage Council and through various constitutional channels,” Iqbal said in a press statement in Jakarta on Wednesday (16/09/2022).

He explained that there are three main components used to calculate the 2027 minimum wage increase: the annual average national inflation, the average national economic growth, and a specific index.

According to Iqbal, KSPI is using an index of 0.9, in accordance with the range of specific indices provided in Government Regulation Number 49 of 2026. This regulation allows for a specific index range between 0.5 and 0.9.

Meanwhile, based on official BPS (Statistics Indonesia) data collected for the period of October 2025 to August 2026, the average national inflation stands at 3.20 per cent, while the average national economic growth is at 5.43 per cent.

“Even when the September data is released, we expect the figures will not differ significantly. Therefore, for now, we are using an average national inflation rate of 3.20 per cent and a national economic growth rate of 5.43 per cent,” Iqbal added.