Jakarta, hitclubapk3 Indonesia
—
Circle
entrepreneur
responding to the determination of the Provincial Minimum Wage
(UMP) DKI Jakarta 2026
increased IDR 333,115 to IDR 5,729,876 per month.The UMP size uses an alpha index of 0.75.
Entrepreneurs assess that apart from considering subsistence needs, determining alpha also needs to reflect the real capabilities of the business world and its impact on the employment structure.
Chairman of the Employment Division of the Indonesian Employers’ Association (Apindo), Bob Azam, believes that the relatively high alpha selection gives the impression that economic conditions are considered good, while the reality on the ground still shows a wide wage gap.
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“The alpha of 0.5 to 0.9 used is close to 0.8 as if it shows that our condition is fine. Even though there are still many informal sectors with wages of IDR 2 million to IDR 3 million which are increasingly far from the formal sector. This actually has the potential to be detrimental to worker protection in the future because the informal sector could expand further,” said Bob to
hitclubapk3Indonesia.com
, Wednesday (24/12).
Responding to DKI Jakarta Governor Pramono Anung’s statement that entrepreneurs had proposed an alpha of 0.55, Bob said the proposal was based on the company’s ability to pay in Jakarta.
“By looking at the data, the ability to pay companies in Jakarta is still below the national average, only around 37 percent, while productivity is in the range of 1.5 to 2 percent,” he said.
He also warned of the potential for further impacts on the business world and labor market.
“There are definitely companies that cannot afford it and need help finding a way out rather than having to close. As a result, the waiting time for job seekers to get a job could be longer,” he said.
Meanwhile, Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Regional Autonomy, Sarman Simanjorang, assessed that the 2026 UMP was determined through the Wage Council mechanism and took into account Jakarta’s economic conditions and the capabilities of the business world.
“The Governor in determining the 2026 UMP is of course based on recommendations from the DKI Jakarta Wage Council. The amount of the increase in the 2026 DKI Jakarta UMP must look at the real economic conditions of Jakarta and the capabilities of the business world,” said Sarman.
According to him, from the perspective of the UMP function, this policy is aimed at workers who are entering work for the first time.
“This UMP is intended for those who are working for the first time, have zero experience, and are still single,” he said.
Sarman also believes that the role of local government needs to be seen as a whole because there is non-wage support for workers, such as free public transportation via the Jakarta Worker Card as well as subsidized education, health and food assistance.
Regarding labor-intensive sectors which are considered difficult to bear the increase, he said that entrepreneurs still have the option of postponing them according to the provisions.
“For entrepreneurs who cannot afford it, there is an opportunity to apply for a postponement according to the applicable regulations,” he said.
Separately, the Confederation of Indonesian Trade Unions (KSPI) rejected the size of the 2026 Jakarta UMP.
KSPI President and Chairman of the Labor Party, Said Iqbal, believes that the UMP should be determined by the feasibility index for decent living (KHL).
Meanwhile, the 2026 DKI Jakarta UMP is still below the Jakarta Decent Living Needs (KHL) standard which reaches IDR 5,898,511 per month.
“KSPI and the Labor Party along with the union alliance throughout DKI Jakarta reject the increase in the DKI UMP which uses a certain index of 0.75 so that the minimum wage becomes IDR 5.73 million,” he said in a virtual press conference, Thursday (24/12).
Another reason KSPI rejects the DKI UMP of IDR 5.72 million is because it is below the 2026 Bekasi and Karawang City Minimum Wage (UMK) of IDR 5.95 million per month.
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