President Prabowo Subianto has announced an average 6.5% increase in Indonesia’s minimum wage for 2025. This decision reflects careful consideration of business conditions and the needs of the population.

The directive is formalized in Minister of Manpower Regulation No. 16 of 2024 on the Determination of the 2025 Minimum Wage, which came into effect on December 4, 2024. The regulation outlines the adjustments for provincial minimum wages (UMP), city/district minimum wages (UMK), and sectoral minimum wages (UMS), both at the provincial (UMSP) and city/district (UMSK) levels, raising them by 6.5% compared to the 2024 minimum wage. According to the regulation, the new UMP, UMSP, UMK, and UMSK will officially take effect starting January 1, 2025.

This policy aims to boost the purchasing power of the public, safeguard workers, and provide a social safety net, particularly for employees with less than 12 months of service. Most provinces in Indonesia have determined and announced their respective minimum wage increases for 2025. Below are the updated figures:

1. DKI Jakarta: Rp5,067,381 → Rp5,396,760
2. West Java: Rp2,057,495 → Rp2,191,232
3. Central Java: Rp2,036,947 → Rp2,169,348
4. East Java: Rp2,165,244 → Rp2,305,984
5. Banten: Rp2,727,812 → Rp2,905,119
6. Special Region of Yogyakarta: Rp2,125,897 → Rp2,264,080
7. North Kalimantan: Rp3,361,653 → Rp3,580,160
8. East Kalimantan: Rp3,360,858 → Rp3,579,313
9. South Kalimantan: Rp3,282,812 → Rp3,496,194
10. Central Kalimantan: Rp3,261,616 → Rp3,473,621
11. West Kalimantan: Rp2,702,616 → Rp2,878,286
12. West Sulawesi: Rp2,914,958 → Rp3,104,430
13. Southeast Sulawesi: Rp2,885,964 → Rp3,073,551
14. Central Sulawesi: Rp2,736,698 → Rp2,914,583
15. South Sulawesi: Rp3,434,298 → Rp3,657,527
16. North Sulawesi: Rp3,545,000 → Rp3,775,425
17. West Sumatra: Rp2,811,449 → Rp2,994,193
18. North Sumatra: Rp2,809,915 → Rp2,992,559
19. South Sumatra: Rp3,456,874 → Rp3,681,570
20. Aceh: Rp3,460,672 → Rp3,685,615
21. Bali: Rp2,813,672 → Rp2,996,560
22. Papua: Rp4,024,270 → Rp4,285,847
23. Central Papua: Rp4,024,270 → Rp4,285,847

The announcement of these wage increases is expected to enhance worker welfare while simultaneously supporting economic stability and maintaining a conducive business environment in Indonesia

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Dewi Susanti