Union Guarantees Labor Peace as Jakarta’s Retailers Dismantle Fences

JAKARTA, Investortrust.id — Indonesia's major labor unions and premier mall operators moved in unison to quell mounting public anxiety, assuring global investors and domestic consumers that the country's business climate will remain calm through the autumn.

Said Iqbal, president of both the Confederation of Indonesian Trade Unions (KSPI) and the Labor Party (Partai Buruh), guaranteed during a virtual news conference on Thursday, Aug. 6, 2026, that no widespread labor strikes or street demonstrations will take place through at least October 2026.

The coordinated statements aim to neutralize viral social media hoaxes that warned of impending civil unrest in major metropolitan hubs. Last August, tens of thousands of workers shut down key thoroughfares across Jakarta during intense nationwide demonstrations over wage formulas and outsourcing rules. By explicitly taking street protests off the table, labor leaders and corporate titans are signaling to foreign capital and local consumers that Southeast Asia's largest economy remains fundamentally stable as second-quarter GDP growth reached 5.29%.

Unions Choose Negotiation Over Street Action

Addressing persistent online rumors of impending strikes, labor chief Said Iqbal emphasized that unions are prioritizing direct policy engagement with top cabinet officials over mass mobilizations.

"The Labor Party, representing Indonesian workers, states that there will be no mass action from August through September 2026," Said Iqbal said during his Thursday virtual briefing. "Therefore, I guarantee there will be no riots and no large-scale protests during this period."

The union federation is concentrating its efforts on four key legislative agenda items: revising Ministerial Regulation No. 7/2026 to tighten limits on outsourced labor, securing a 0% tax rate on Old Age Security (JHT) pension payouts, rejecting proposed 0.5x severance pay formulas, and expediting the drafting of a comprehensive Labor Bill pursuant to Constitutional Court Ruling No. 168/PUU-XXI/2024.

Said Iqbal, who also serves as a Special Adviser to the President, noted that active consultations are underway with the Ministry of State Secretariat, parliamentary leaders, and the Ministry of Finance.

Retail Giants Tear Down Mall Fences

The labor union's peaceful stance coincided with swift action from Indonesia’s prominent commercial real estate developers to dispel security concerns.

James Riady, chairman of Lippo Group—which manages 106 shopping centers controlling roughly 25% of the country’s modern retail space—and Alexander Tedja, founder of Pakuwon Group, clarified that temporary perimeter fences erected at select properties were local management decisions rather than corporate security mandates.

"In the past, all malls installed fences when riots occurred," James Riady told Investortrust during an executive gathering at the Presidential Palace on Friday, July 31, 2026. "Today, that is no longer necessary because the situation is calm."

Alexander Tedja confirmed that high barrier fences installed at Pakuwon's flagship Kota Kasablanka (Kokas) mall in South Jakarta would be dismantled starting Monday, Aug. 3, 2026, following direct discussions with Minister of Housing and Residential Areas Maruarar Sirait.

"That was a local management decision and will be taken down immediately," Tedja confirmed.

Budihardjo Iduansjah, chairman of the Indonesian Shopping Center Tenants Association (Hippindo), echoed those sentiments at the Coordinating Ministry for Economic Affairs on Thursday, Aug. 6, 2026, clarifying that perimeter adjustments were purely designed to streamline foot traffic and vehicle access rather than counter security threats.

Security Chiefs Declare Complete Stability

To reinforce market confidence, Coordinating Minister for Political and Security Affairs Gen. (Ret.) Djamari Chaniago convened a joint press conference on Wednesday, Aug. 5, 2026. He was flanked by Armed Forces (TNI) Commander Gen. Agus Subiyanto, National Police Chief Gen. Listyo Sigit Prabowo, Attorney General ST Burhanuddin, and State Intelligence Agency (BIN) Chief M. Herindra.

"The domestic situation is exceptionally firm, and all developments occurring nationwide remain under our complete control," Chaniago stated at the ministry's headquarters in Jakarta. "Public activities in Jakarta and other major cities are proceeding as normal. We urge the public not to be disturbed by disinformation or rumors designed to incite worry."

KSPI and Labor Party President Said Iqbal addresses reporters during a virtual press conference in Jakarta on Thursday, Aug. 6, 2026. Photo: Investortrust/Taufiq Al Hakim