Transforming Minimum Wage Policy Toward a Living Wage in Indonesia’s Hospitality Industry: A Multipol Analysis

Authors

  • Hariyadi B. Sukamdani Sahid University
  • Nafiah Ariyani Sahid University

DOI:

https://doi.org/10.61194/ijjm.v7i2.2270

Keywords:

living wage, hospitality industry, MULTIPOL, strategic roadmap, productivity, Indonesia

Abstract

This study develops a strategic framework for transitioning from a minimum wage to a living wage system in the Indonesian hospitality sector. Utilizing the MULTIPOL multicriteria analysis, the research evaluates the strategic hierarchy of policy scenarios, examines the consistency between interventions and actions, and constructs a conceptual transformation roadmap. Findings reveal that Productivity Enhancement (P3) is the most influential and resilient policy framework, followed by Variable Income Transparency (P1) as a critical stabilizing anchor. These policies demonstrate high resilience across various future scenarios, particularly under Gradual Fair Transformation (S4). Correspondence mapping further identifies a strong strategic fit between productivity-driven policies and Productivity Training (A6), while aggressive base-wage hikes are found to be highly context-sensitive. The study concludes with a strategic transformation flowchart, proposing a multi-track approach: a Primary Track (productivity-led), a Baseline Track (transparency-focused), and a Contingent Track (adaptive social dialogue). This research shifts the wage discourse toward an "Earned Adequacy" model, providing a scalable guide for local governments and industry stakeholders to balance worker welfare with business competitiveness.

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Published

2026-04-27

How to Cite

Sukamdani, H. B., & Ariyani, N. (2026). Transforming Minimum Wage Policy Toward a Living Wage in Indonesia’s Hospitality Industry: A Multipol Analysis. Ilomata International Journal of Management, 7(2), 751–762. https://doi.org/10.61194/ijjm.v7i2.2270

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