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

On Friday evening, January 30, 2026, the dining areas of Manhattan Hotel Jakarta transformed into a festive scene. Lanterns glowed in warm reds and golds, buffet stations stretched across the space, and the air was filled with a layered aroma of spices, smoke, and slow-cooked dishes. Live music set a relaxed mood as guests wandered […]

The British government has expressed its readiness to assist the Province of Bali in addressing traffic congestion and waste management challenges. The offer was conveyed by the Deputy British Ambassador to Indonesia, H.E. Matthew Downing, during a meeting with Bali Governor I Wayan Koster in Denpasar on Friday, 30 January 2026. Downing said the UK […]

An American tourist has died while trekking in the forest area of West Bali National Park (TNBB), Bali Police confirmed on Saturday. The victim, identified as Brad Alan (61), a United States citizen, collapsed during a guided trekking activity in Hamjar Dinas Teluk Terima, Sumberklampok Village, Gerokgak District, Buleleng Regency. Authorities said the incident occurred […]

Banyuwangi Red Durian has officially become the first durian in Indonesia to receive Geographical Indication (GI) protection, following the issuance of a GI certificate by the Ministry of Law. The certification marks a significant step in protecting local horticultural products and confirms the fruit’s origin and distinctive characteristics. The certificate recognises Banyuwangi Red Durian (Durio […]

Expat Events

Indonesia Visas

Expat Event

Social Networking
150,000
Habitate Jakarta
Social Networking
150,000
Mövenpick Hotel Jakarta City Centre
Funlethic
200.000
Social Padel House Setiabudi

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery