Rejecting the Determination of the 2026 Provincial Minimum Wage (UMP): New Formula, Old Poverty
AFWA Indonesia formally rejects the 2026 Provincial Minimum Wage (UMP) in this position statement. The government’s new formula—which relies on macroeconomic indicators such as inflation and economic growth—is a continuation of the Omnibus Law regime designed to suppress wages to boost investment competitiveness. It fails to account for the actual cost of social reproduction, such as nutritious food, housing, and healthcare, effectively trapping workers in structural poverty and forcing them into debt to survive. In contrast, AFWA advocates for a Living Wage of IDR 9,003,687, calculated using a family-based methodology that prioritises human dignity and 3,000 calories per day over market tolerance. The statement calls for an end to the “race to the bottom” by demanding that global brands and the state recognise a living wage as a fundamental human right rather than a flexible economic variable.
Read our statement: English | Bahasa Indonesia
