President Wants to Hike Min. Wage by 6.5%

Indonesian President Prabowo Subianto has declared a 6.5% increase in the national average wage for 2025.

As BaliPost.com and the State News Agency Antara report, Prabowo defended the wage increase, saying workers’ welfare is very important.

Indonesian President Prabowo Subianto

“The welfare of workers is a matter of great importance. We will continue to struggle to improve their welfare,” said the President during an announcement from his office in Jakarta on Friday, 29 November 2024.

During a meeting with leaders of labor associations and unions, President Prabowo said his plan to provide free nutritious meals for children and pregnant women would also enhance the welfare of Indonesian workers. The meeting at the Presidential Palace with the President of the Confederation of Indonesian Workers Union (KPSI) and President of the Workers Party, Said Iqbal, lasted more than 2 hours.

Said commented that the proposed minimum wage increase of 6.5% is acceptable mainly because of its proximity to the unions’ requested increase of 8%. He said he still hopes the minimum national wage increase could equal or exceed 8%.

The President has declared that the budget for nutritious meals for children and pregnant women is Rp. 10,000 per peson per day. As a result, a family with three children would be allocated Rp. 30,000 per day or around Rp. 2.7 million per month. 

During Friday’s meeting, President Prabowo dedicated 15 minutes to discussing the national minimum wage level for 2025; the remainder of the President’s time was used to address issues of national unity and the need to build a strong economy. 

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