Workers Seek Minimum Wage Increase of up to 9% in 2027, Here's Why

Trade unions have begun putting forward proposals for a minimum wage increase in 2027. The unions are proposing a rise of between 7 and 9%, a percentage based on calculation.

“Workers will propose the 2027 minimum wage increase based on inflation, economic growth, and a certain index. The specific index we are proposing from labour, at the very least from KSPI and KSP-PB, is 0.5 to 0.9,” said President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, at the DPR RI complex in Senayan, Jakarta, on Monday (7/9/2026), as quoted by detikFinance.

Said estimated inflation would sit at around 3%, while average economic growth would be roughly 5.2–5.3%. Based on those calculations, he proposed a 2027 minimum wage increase in the range of 7.5–8.5%.

“If we take the average (economic growth) of 5.2% or 5.3%, plus inflation of just over 3%, we arrive at roughly 8.4% or 8.5%. Multiply that by 0.9 (alpha). So the 2027 minimum wage increase can be estimated at between 7.5% and 8.5%,” he explained.

Said stressed that the proposal remains an estimate. The proposed figure still awaits official data from Statistics Indonesia (BPS) on inflation and economic growth, which form the basis for calculating the minimum wage.

“Of course we are waiting for BPS’s official report on inflation and economic growth — calculated not on the calendar year, but on the calendar year according to custom (tahun takwim). September 2025 to October 2026. That means waiting for BPS. We don’t yet know what inflation and economic growth will be in September and October,” Said explained.