The Coalition of Trade Unions and the Labor Party (KSP-PB) stated that the union's demand is based on Constitutional Court Decision No. 168/2023, issued last year. The landmark ruling emphasizes that wage determination must account for the necessity of a decent living.

"We are basing this on the Constitutional Court's (MK) decision, which states that a minimum wage increase must consider the need for a decent living, using a formula that takes into account inflation, economic growth and certain indices," Labor Party president Said Iqbal said during an online press conference on Monday, as reported by Kompas.com.

He explained that the inflation rate over the past 12 months was between 3 and 3.26 percent, while the economy grew by 5.2 percent during the same period. Furthermore, he argued that the specific index should increase from 0.9 to 1 percent due to the government's claim of reduced poverty and unemployment.

"So, by adding 5.2 percent [economic growth] and 3.26 percent [inflation], we get 8.46 percent, rounded up to 8.5 percent. This is in line with the MK ruling," he said.

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Manpower Minister Yassierly confirmed that the government is currently developing the concept and conducting a study for the planned wage hike next year, noting that discussions with various stakeholders are ongoing.