Said Iqbal Prepared to Propose Minimum Wage Formula to Prabowo

Jakarta, CNBC Indonesia - Presidential Special Adviser for Labour, Said Iqbal, has revealed plans to submit proposals regarding wage calculation and labour absorption. These proposals, presented to President Prabowo Subianto, will take the form of current policy analyses.

According to Iqbal, the annual calculation of wages remains a primary issue demanded by trade unions during demonstrations. The Provincial Minimum Wage (UMP) is adjusted and determined on an annual basis.

“Hopefully, with my appointment as a presidential special adviser, we will conduct a policy analysis regarding the magnitude of wage increases and how it affects labour absorption, before such decisions are finalised,” he stated following his inauguration at the State Palace on Monday (8/6/2026).

“Coincidentally, I hold a Master’s degree in this field; my thesis was on this subject, so I understand it deeply. That is why I have been most vocal regarding wages,” he added.

He explained that certain components used in the ‘Decent Living Standard’ (KLH) calculation are no longer appropriate for current conditions. Said cited examples such as the requirement for 0.75 kilograms of meat and five pieces of fresh fish per month.

“Up until now, the standard for minimum wage included 3/4 kilogram of meat per month. That is no longer realistic. Five pieces of fresh fish? It makes no sense,” said Said.

Furthermore, he noted changes in societal consumption patterns, including school fees, mobile data costs, and mortgage payments.

“These issues are always part of the labour movement’s struggle, including wages. The upcoming labour law draft will also be a significant challenge,” he said.

Nevertheless, Said Iqbal emphasised that his stance does not imply he is anti-employer. He noted that economic growth is impossible if company operations are disrupted.

“The business world must also be given equal space to grow and achieve profitability,” he concluded.