Massive labor protest demands higher wages, tax Reforms, new labor law
Thousands of workers from Greater Jakarta area rallied to the House of Representatives (DPR) and the Presidential Palace in Jakarta on Thursday, August 28, 2025.
The protest, organized by the Coalition of Labor Unions and the Labor Party (KSP-PB), called for fair wages, tax reforms, and immediate passage of a new labor law outside the framework of the Omnibus Law.
Led by Said Iqbal, President of the Labor Party and the Confederation of Indonesian Trade Unions (KSPI), the rally drew an estimated 10,000 workers from Karawang, Bekasi, Bogor, Depok, Tangerang, and Jakarta, with simultaneous protests taking place in major industrial cities such as Serang, Bandung, Semarang, Surabaya, Medan, Banda Aceh, Batam, Bandar Lampung, Banjarmasin, Pontianak, Samarinda, Makassar, Gorontalo, and several other regions.
Key demands
The movement, known as HOSTUM (Abolish Outsourcing, Reject Low Wages), carried six primary demands:
1. Reject Low Wages – Raise Minimum Wage for 2026 by 8.5–10.5 percent
Citing Constitutional Court Decision No. 168, Said Iqbal stated that the increase was calculated using inflation (projected at 3.26 percent) and economic growth (around 5.1–5.2 percent), leading to a fair adjustment of 8.5–10.5 percent.
“If unemployment and poverty are indeed decreasing, as the government claims, then there should be the courage to increase wages to strengthen purchasing power and drive economic growth,” Iqbal said.
2. Abolish Outsourcing Practices
Iqbal emphasized that outsourcing should be strictly limited to non-core functions.
“Core jobs cannot be outsourced. Outsourcing must only apply to supporting roles, such as security. We call on the government to revoke Government Regulation No. 35/2021, which legalizes widespread outsourcing,” he asserted.
3. Labor Tax Reform
Workers demanded raising the non-taxable income (PTKP) from Rp 4.5 million to Rp 7.5 million per month, abolishing taxes on holiday allowances (THR), severance pay, and retirement benefits, and eliminating discriminatory tax rules against married women.
“Removing taxes on THR and severance would not harm state revenue. The money would return to the economy through consumption, creating VAT income. The collection method would simply be fairer,” Iqbal cited.
4. Enact a New Labor Law
Protesters urged Parliament and the government to finalize a new Labor Law, as mandated by the Constitutional Court ruling, within the two-year deadline.
“One year has passed since the Court’s decision, yet serious deliberation has not begun. The law must cover fair wages, restrict outsourcing, limit contract work, ensure adequate severance, protect maternity leave, regulate digital platform workers, and safeguard all employees, including medical, transport, education, and media workers,” Iqbal said.
5. Establish a Layoff Prevention Task Force (Satgas PHK)
The group demanded immediate action to monitor and prevent arbitrary mass layoffs amid slowing household consumption and economic pressures.
6. Pass the Asset Seizure Bill and Amend the Election Bill for 2029
Workers also pushed for the enactment of an Asset Seizure Bill to combat corruption and for electoral reforms to redesign Indonesia’s voting system for 2029.
Iqbal underscored that the demonstration was carried out peacefully across the country.
“This is a critical moment for workers to voice their aspirations. We urge the government to stand on the side of workers, farmers, teachers, and all who contribute to building this nation,” he concluded.
Already have an account? Sign In
-
Start reading
Freemium
-
Monthly Subscription
20% OFF$29.75
$37.19/MonthCancel anytime
This offer is open to all new subscribers!
Subscribe now -
Yearly Subscription
33% OFF$228.13
$340.5/YearCancel anytime
This offer is open to all new subscribers!
Subscribe now



