The Wage Council As An Action Arena In The Formulation of Minimum Wage Policy In Indonesia: A Literature Review
Keywords:
Wage Council; Minimum wage; Tripartite bargaining; Decent living needs; Institutional authority.
Abstract
The Wage Council brings together representatives of the government, employers, workers, and academics in deliberations on minimum wage policy; however, formal representation does not necessarily ensure equality of influence over policy recommendations. This study aims to analyze the Wage Council as an action arena in the formulation of minimum wage policy in Indonesia by examining the relationships among institutional rules, participants’ positions and resources, access to information, and interactions among stakeholders. The study employed a systematic literature review of 21 articles published between 2017 and 2025. The literature was identified through journal websites, GARUDA, Neliti, and reference-list screening. The analysis combined thematic synthesis based on the Institutional Analysis and Development framework with term co-occurrence mapping using VOSviewer. The mapping identified six clusters comprising 26 terms related to participants, institutional functions, living needs, worker mobilization, and wage determination. The synthesis indicates that changes in wage-setting formulas and the role of decent living needs surveys are associated with the scope of negotiation within the council. Organizational support, political networks, analytical capacity, and the timing of access to information create differences in participants’ opportunities to defend their proposals. Academics contribute through data processing and the clarification of policy considerations, while lobbying and mobilization connect formal deliberations with activities outside the forum. Deliberation outcomes vary between consensus and deadlock, and the council’s recommendations do not always correspond with the governor’s final decisions. The study concludes that the council’s role is shaped by the interaction among institutional rules, resource distribution, the use of information, and decision-making authority. Strengthening the process requires equitable access to information, transparent explanations of the basis for wage calculations, and systematic documentation of the reasons for accepting or rejecting proposals while taking regional differences into account.
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Koebele, E. A., Méndez-Barrientos, L. E., Nadeau, N., & Gerlak, A. K. (2024). Beyond engagement: Enhancing equity in collaborative water governance. WIREs Water, 11(2), e1687. https://doi.org/10.1002/wat2.1687
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Published
2026-09-30
How to Cite
W, W., Nurrobbi Tri Putra, & Maretta Anggi A. (2026). The Wage Council As An Action Arena In The Formulation of Minimum Wage Policy In Indonesia: A Literature Review. International Journal of Education, Vocational and Social Science , 5(04), 2153-2172. https://doi.org/10.63922/ijevss.v5i04.6603
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