Indonesian Political, Business & Finance News

Workers' Wages Are Tight: Rising Food Prices Strangle - Dreams of Owning a Home Shattered

| Source: CNBC Translated from Indonesian | Social Policy
Workers' Wages Are Tight: Rising Food Prices Strangle - Dreams of Owning a Home Shattered
Image: CNBC

Workers staged a May Day 2026 demonstration at the National Monument to commemorate International Labour Day and advocate for their rights to a prosperous life. They highlighted several issues, including wages that do not adequately compensate for the rise in basic necessities, payments not in line with work standards, and outsourcing practices. One worker named Jacob (not his real name), who travelled from Bekasi to Monas, voiced demands for wages that enable a decent livelihood. He stated that wage increases are not commensurate with the rise in staple goods prices, which burdens workers. “The current situation, looking at the data, shows a 20-30% increase in basic commodity prices. Meanwhile, our wage increases are still at 5%-7%, which is insufficient,” Jacob told CNBC Indonesia at Monas, Jakarta, on Friday (1/5/2026). Jacob appreciated the government’s efforts to improve living standards but hoped for greater attention to workers’ conditions and wage adequacy in the future. “So that we can live decently in Indonesia,” he said. Similarly, Sinta (not her real name), who continues working at the age of 57 without tiring, joined the protest at Monas to fight for workers’ rights. She admitted that current wages are barely sufficient for living, especially with rising food prices. Even the minimum wage is not enough; how much more so for those not receiving standard pay? It must be even more painful. Sinta shared that many of her friends working as package couriers in Depok, West Java, labour for up to 12 hours but are paid only around Rp100,000-120,000 per day. That means, for 20 working days, they earn only Rp2 million to Rp2.4 million per month. “That’s why this is one of the complaints; this is outside or more than overtime. There needs to be proper calculation. What are the SOPs? Please pay attention to all the drivers and couriers in Depok, because they have minimal wages,” she said. For information, the 2026 minimum wage in Depok is Rp5,522,622 per month. The tight wages for workers also close off the dreams of young workers to own a home soon. A house as personal shelter and a place of refuge is no longer easily attainable for young people. Santo (not his real name), who works in a multinational company’s factory in East Jakarta, admitted that his received wage is just enough for daily needs. But owning a home soon is merely a dream. “I want to (own a house), but with the current minimum wage, it’s definitely not enough; it’s already not sufficient,” he told CNBC Indonesia when met at Monas on Friday (1/5/2024).

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