Jakarta. Indonesia’s 2026 minimum wage increases have yet to translate into better living standards for workers as rising prices continue to erode their purchasing power, while layoffs and short-term employment add to their economic uncertainty.

Mirah Sumirat, chairwoman of the All Indonesia Workers Union Association (Aspirasi), welcomed the wage increases but warned that higher nominal incomes mean little if workers cannot afford their daily needs.

“There's no point in raising wages if workers cannot afford to buy things because prices have risen so dramatically,” Mirah said during a special dialogue reviewing the first two years of the Prabowo Subianto-Gibran Rakabuming Raka administration, on Tuesday.

She said wage policy should be assessed not only by the size of the increase but also by whether workers can keep up with the rising cost of goods and services. If household expenses grow faster than wages, workers may see little improvement in their purchasing power.

Beyond rising prices, Mirah highlighted job insecurity and mounting layoffs as key challenges facing workers under the current administration.

She cited Manpower Ministry data showing that around 67,000 workers were laid off in January 2026. Aspirasi, however, claims its internal data put the number at three times the official figure.

Mirah attributed the discrepancy partly to companies failing to report layoffs to local manpower offices and workers not being registered with the Social Security Agency for Employment (BPJS Ketenagakerjaan). The higher figure is Aspirasi's estimate and has not been established as official government data.

“Workers are finding it increasingly difficult to secure stable employment. Some can only find jobs that last around one to three months,” she said.

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