Provincial Minimum Wage Compromise

The government finally set the average minimum wage increase at 6.5 percent, following a tug-of-war over the calculation formula after the Constitutional Court annulled the labor cluster in the Job Creation Law.

Khairul Anam

December 2, 2024

ON Friday afternoon, November 29, 2024, Said Iqbal rushed to the Presidential Palace after receiving a call from an aide to President Prabowo Subianto. For two hours, Iqbal, the General Chair of the Labor Party and President of the Confederation of Indonesian Workers’ Union (KSPI), discussed the determination of the 2025 provincial minimum wage (UMP) with Prabowo.

Other attendees included representatives from the National Workers Unio

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