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
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:
- Aceh: IDR 3,685,615
- North Sumatra: IDR 2,992,559
- West Sumatra: IDR 2,994,246
- Riau: IDR 3,508,775
- Jambi: IDR 3,234,533
- South Sumatra: IDR 3,681,570
- Bengkulu: IDR 2,670,039
- Lampung: IDR 2,893,068
- Bangka Belitung: IDR 3,876,600
- Riau Islands: IDR 3,623,653
- Banten: IDR 2,905,119
- Jakarta: IDR 5,396,760
- West Java: IDR 2,191,232
- Central Java: IDR 2,169,348
- Special Region of Yogyakarta: IDR 2,264,080
- East Java: IDR 2,305,984
- Bali: IDR 2,890,060.68
- West Nusa Tenggara: IDR 2,602,931
- East Nusa Tenggara: IDR 2,328,969
- West Kalimantan: IDR 2,878,286
- Central Kalimantan: IDR 3,473,621
- South Kalimantan: IDR 3,496,194
- East Kalimantan: IDR 3,579,313
- North Kalimantan: IDR 3,580,160
- North Sulawesi: IDR 3,775,425
- Central Sulawesi: IDR 2,914,583
- South Sulawesi: IDR 3,657,525
- Southeast Sulawesi: IDR 3,073,487
- Gorontalo: IDR 3,221,731
- West Sulawesi: IDR 3,104,430
- Maluku: IDR 3,141,699
- North Maluku: IDR 3,408,000
- West Papua: IDR 3,613,545
- Papua: IDR 4,285,847
- Central Papua: IDR 4,285,847
- Mountainous Papua: IDR 4,285,847
- Southwest Papua: IDR 4,285,847
- South Papua: IDR 4,285,847
cover: Photo by Sewupari Studio/Pexels
