In 2015, all unions opposed a new regulation on wages that restricted the use of the
dignified standard of living condition.
In the 2017 Jakarta gubernatorial elections, a coalition of unions signed a Political
Contract with one set of candidates who promised wage increases above those
mandated by recent government regulations.
The new Governor of Jakarta has not adhered to the Political Contract he signed,
causing tensions with some unions.
Indonesia’s two largest union confederations have now become aligned to
competing political blocs.
It is likely that there will be no serious union challenge to the new regulations.
However, de-escalated campaigning and strong alignments with existing political
blocs may open up space for some of the many other unions to grow.
The Politics of Wages and Indonesia’s Trade Unions (Article by Max Lane.)