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

Moving to a new city such as Jakarta involves many adjustments, including navigating the healthcare system. For expatriates, dental care is often one of the first services they seek, whether for routine check-ups, preventive care or urgent treatment. Understanding what to expect and how to prepare can make the experience smoother, safer and more reassuring. […]

A passenger on a Batik Air flight from Kuala Lumpur, Malaysia, to Kochi, India, was handed over to local authorities after allegedly attempting to open an emergency exit and damaging a window panel during the flight. The incident occurred on 5 August 2026 on a flight travelling from Kuala Lumpur International Airport (KUL) to Cochin […]

A 50-year-old Swiss national suffered a broken leg after falling into a storm drain in the Sunset Road area of Seminyak Village, Kuta District, Badung Regency, Bali, on Friday night (August 7, 2026). The victim, identified as Robert, fell into the drain near the Grand Seminyak Hotel at approximately 9.50pm Central Indonesian Time (WITA). Due […]

Bali has abandoned its previous plan to develop a Mass Rapid Transit (MRT) or subway system and is instead preparing to develop an Autonomous Rail Rapid Transit (ART) system connecting I Gusti Ngurah Rai International Airport with Canggu. Bali Governor Wayan Koster said the ART project is targeted to begin construction in 2027, provided the […]

Expat Events

Indonesia Visas

Expat Event

Social Networking
IDR 200.000
PESTO, Senayan City
Social Networking
IDR 150.000
The Platform, Artotel HUB Simpang Temu
Business Networking
IDR 150.000
Casa Cuomo Ristorante & Lounge

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery