Context in Indonesia in 2024

 

In 2024, Indonesia navigated a complex landscape marked by democratic erosion, economic recovery, and persistent social challenges. The general elections saw a large public participation but raised concerns over dynastic politics, judicial interference, and shrinking civic space. Despite an economic growth of 5.1%, inequality remained high, with informalization of labor and limited access to social protection for vulnerable groups. Labor unions achieved key legal victories, including the reinstatement of sectoral minimum wages, yet faced continuous resistance to workers protections and rising workplace safety concerns.

In 2024, Indonesia’s Constitutional Court ruled that the wage system must align with the 1945 Constitution, leading to the repeal of Regulation No. 51/2023, which had capped wage increases at 5%. Based on economic growth (5.2%) and inflation (2.8%), KSBSI proposed a wage increase of 7–10%, and the government ultimately set a 6.5% increase in December 2024. KSBSI also successfully lobbied for the reinstatement of minimum sectoral wages (UMS) through Regulation No. 16/2024. 

Civil society organizations and trade unions operated under increasing repression, with surveillance, legal harassment, and restrictions on public protests. Networks like INSP!R Indonesia remained vital to defend labor rights and social protection for informal and marginalized workers.

Meanwhile, health reforms aimed at improving access and equity were overshadowed by privatization concerns and underfunding of preventive care. Environmental policies progressed slowly, constrained by reliance on fossil fuels and deforestation. Amid these challenges, civil society continued to mobilize for a just transition, human rights, and stronger public services, reinforcing its role as a key actor in Indonesia’s democratic and social landscape.