Provincial Minimum Wage Increases for 2026 Announced

New Regulations and Implementation

By December 24, 2025, 13 provinces had officially announced their 2026 minimum wage increases in accordance with Government Regulation No. 49/2025 ²

. This regulation mandates that provincial governors announce the minimum wage adjustments by this date, marking a change from previous years' deadlines ³

Source 3

https://finance.detik.com/berita-ekonomi-bisnis/d-8274974/kenaikan-ump-2026-wajib-diumumkan-hari-ini

.

Provincial Breakdown of Minimum Wage Increases

Several key provinces have already revealed their 2026 minimum wage figures. North Sumatra led with a 7.8% increase, raising its minimum wage to Rp 3.228 million from Rp 2.992 million ¹

. Jakarta, another major economic hub, is also expected to announce its figures today ⁴

Source 4

https://finance.detik.com/berita-ekonomi-bisnis/d-8275259/kenaikan-ump-jakarta-dari-waktu-ke-waktu-pernah-naik-49

.

Regulatory Framework and Calculation Methodology

The new minimum wage regulation follows the formula: Inflation + (Economic Growth × Alpha),

where 'Alpha' ranges between 0.5 and 0.9, allowing provincial discretion based on local economic conditions ²

. The Ministry of Manpower has emphasized that this formula provides flexibility for regions to adjust wage increases according to their specific circumstances.

Labor Union Perspectives and Concerns

Labor unions have been actively engaged in the minimum wage discussions. The Indonesian Confederation of Workers' Unions (KSPSI) has requested that governors respect the recommendations from district-level wage councils, warning that unilateral changes could lead to worker unrest ⁵

.

Economic Implications and Future Outlook

The varying minimum wage increases across provinces reflect different regional economic conditions and living costs. While some workers welcome the increases as necessary adjustments, others continue to express concerns about the adequacy of these wages to cover living expenses ⁶

.