minimum wage

Minimum Wage in Indonesia Set to Rise 6.5% in 2025: Effects on Labour and Businesses

Share:

President Prabowo Subianto announced a 6.5% increase in the national minimum wage by 2025.

“More detailed provisions regarding the minimum wage will be regulated by a Minister of labour Regulation,” Prabowo said on Friday, November 29, 2024.

So, what is the impact of the 6.5% minimum wage increase for workers and industry?

Apart from being related to welfare, the policy can also increase consumption for the community. The minimum wage increase should also raise workers’ productivity, thus increasing their competitiveness in Southeast Asia.

On the other hand, companies will face challenges related to the 6.5% minimum wage increase. This is because entrepreneurs are also experiencing various challenges, both at the national and global levels. If employers cannot deal with it, there is a threat of layoffs of employees.

DKI Jakarta Government Announces Jakarta UMP in 2025 to be Rp 5.3 million

minimum wage UMP
Photo by Ahsanjaya/Pexels

The Provincial Government of DKI Jakarta has set the 2025 Provincial Minimum Wage (UMP). Jakarta Acting Governor Teguh Setyabudi said the determination of the 2024 Provincial Minimum Wage refers to Government Regulation (PP) Number 16/2024 concerning Wages.

“Thus, the Jakarta UMP for 2025 is Rp 5,396,761,” Teguh said, as quoted from Detiknews.

He added the DKI Jakarta UMP increase was 6.5% compared to the previous year. The 2024 DKI Jakarta UMP is IDR 5,067,381.

This UMP value also applies to workers/labourers with a working period of less than 1 year.

Minister of labour Yassierli said that workers or labourers can report business actors who do not pay wages under the 2025 minimum wage that has been determined.

“If there are companies that do not apply the 2025 UMP, of course, the statutory mechanism applies. We also have labour inspectors, so workers or labourers can report to labour inspectors,” he said as reported by Tempo.

The 2025 minimum wage in 38 Indonesian provinces

The following is a breakdown of UMP estimates from 38 provinces in Indonesia:

  1. Aceh: IDR 3,685,615
  2. North Sumatra: IDR 2,992,559
  3. West Sumatra: IDR 2,994,246
  4. Riau: IDR 3,508,775
  5. Jambi: IDR 3,234,533
  6. South Sumatra: IDR 3,681,570
  7. Bengkulu: IDR 2,670,039
  8. Lampung: IDR 2,893,068
  9. Bangka Belitung: IDR 3,876,600
  10. Riau Islands: IDR 3,623,653
  11. Banten: IDR 2,905,119
  12. Jakarta: IDR 5,396,760
  13. West Java: IDR 2,191,232
  14. Central Java: IDR 2,169,348
  15. Special Region of Yogyakarta: IDR 2,264,080
  16. East Java: IDR 2,305,984
  17. Bali: IDR 2,890,060.68
  18. West Nusa Tenggara: IDR 2,602,931
  19. East Nusa Tenggara: IDR 2,328,969
  20. West Kalimantan: IDR 2,878,286
  21. Central Kalimantan: IDR 3,473,621
  22. South Kalimantan: IDR 3,496,194
  23. East Kalimantan: IDR 3,579,313
  24. North Kalimantan: IDR 3,580,160
  25. North Sulawesi: IDR 3,775,425
  26. Central Sulawesi: IDR 2,914,583
  27. South Sulawesi: IDR 3,657,525
  28. Southeast Sulawesi: IDR 3,073,487
  29. Gorontalo: IDR 3,221,731
  30. West Sulawesi: IDR 3,104,430
  31. Maluku: IDR 3,141,699
  32. North Maluku: IDR 3,408,000
  33. West Papua: IDR 3,613,545
  34. Papua: IDR 4,285,847
  35. Central Papua: IDR 4,285,847
  36. Mountainous Papua: IDR 4,285,847
  37. Southwest Papua: IDR 4,285,847
  38. South Papua: IDR 4,285,847

cover: Photo by Sewupari Studio/Pexels

Find this article helpful? Check out our other articles from Social Expat:

SEO Writer

Imelda is a content writer specializing in viral news and Indonesian culture. Her work revolves around researching and analyzing current events, social media trends, and popular culture.

Related News

Because of the tree collapse in Bali’s Monkey Forest tourist attraction, Ubud District, Gianyar Regency, Bali, Tuesday (10/12/2024), the place is closed until December 12, 2024. “Monkey Forest Ubud will be closed on December 11 and 12, 2024,” quoted from the upload of the official Monkey Forest Instagram account, @monkey_forest_ubud. Two foreign tourists were crushed […]

Heavy rains accompanied by strong winds during this week have caused disastrous events in various regions in Bali, one of which is falling trees. Most recently, a fallen tree occurred in the Monkey Forest Tourism Object area, Padangtegal Village, Ubud, Gianyar, Bali, on Tuesday, December 10, 2024. From the Instagram account @canggubalinews it appears that […]

Welcoming the Christmas and New Year holidays, Indonesian flight activities are indeed dense because many people use air transportation to travel. Moreover, the government’s promise to reduce tickets by 10% ahead of this holiday has also increased public interest. Minister of State-Owned Enterprises (BUMN) Erick Thohir confirmed that, per President Prabowo Subianto’s instructions, they implemented […]

Several foreign tourists and expats were involved in prostitution cases in Bali throughout 2024. Starting from opening spa services and becoming commercial sex workers. They become commercial sex workers and offer services with an open booking system online. Many of the cases were initiated by foreigners who initially vacationed in Bali but overstayed their visas […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery