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

An Algerian national was evacuated from Lake Sunter in North Jakarta after spending several hours in the water and reportedly claiming he was performing a spiritual ritual. The man, identified by the initials BZ, 30, was found in the middle of Lake Sunter in Sunter Jaya, Tanjung Priok, on Sunday evening (30 August 2026). His […]

Indonesia’s Ministry of Forestry has temporarily closed hiking activities in nine national parks and conservation areas because of increased risks of forest and land fires during the 2026 dry season. The policy took effect on Tuesday, September 1, 2026, following the issuance of Circular Letter Number SE.4/KSDAE/SKSDAE/KSA.02.02/B/8/2026, dated August 31. The circular concerns the temporary […]

Indonesian horror is set to return to the international spotlight with Satan’s Slaves: Origin, the international title for Pengabdi Setan 3: Origin. The third film in Joko Anwar’s acclaimed horror franchise has officially entered production and is scheduled for a theatrical release in 2027. The film follows Pengabdi Setan (2017) and Pengabdi Setan 2: Communion […]

Jakarta Dessert Week (JDW) returns to the capital from 1–20 September 2026, bringing together pastry chefs, restaurants, emerging dessert makers and creative brands across the city. This year, however, the festival is looking beyond the dessert plate. Its chosen theme: Dangdut, turns one of Indonesia’s most recognisable musical traditions into a broader conversation about culture, […]

Expat Events

Indonesia Visas

Expat Event

Social Networking
IDR 200.000
Poolside, Grand Hyatt Jakarta
Social Networking
IDR 150.000
Erre & Urrechu, Gran Melia
Business Networking
IDR 150.000
Parc & 9th, Le Parc Residence

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery