Victory: Indonesian forest workers secure sectoral minimum wage hike

After more than a decade without a sectoral minimum wage for the forestry industry in Indonesia, the BWI-affiliated East Kalimantan Region of the Indonesian Forestry and Allied Workers Union (KAHUTINDO) successfully advocated for its reinstatement. This achievement brings an additional 2 percent increase on top of the nationwide 6.5 percent minimum wage hike for 2025.

Last 9 December 2024, KAHUTINDO East Kalimantan Chairperson Sukarjo, who led the negotiations, praised the recent Ministerial Decree revising minimum wage policies. “After years of struggle, we have finally seen the government shift from a purely macroeconomic approach to minimum wage determination toward recognizing high-risk sectors as eligible for sectoral adjustments,” Sukarjo stated. “We emphasized that forestry work is among these high-risk sectors. It is long overdue for working conditions and job characteristics to play a role in wage setting, rather than relying solely on a sector’s contribution to GDP or economic development ratios.”

To consolidate strategies for the wage negotiations and prepare for upcoming amendments to labor laws, KAHUTINDO convened a two-day national retreat and strategy meeting at its Training Center in Ungaran, Central Java, last weekend. The event gathered branch and regional leaders, as well as wage negotiators, to align efforts and set legislative priorities.

This milestone marks a significant victory for forestry workers in Indonesia, ensuring their demanding and hazardous work is appropriately recognized and compensated.