Indonesian Provinces Announce 2026 Minimum Wage Increases

Comprehensive Provincial Adjustments

Twenty-four Indonesian provinces have officially announced their 2026 minimum wage adjustments, with significant variations across regions ³

. Jakarta, being the economic hub, has set the highest minimum wage at Rp 5.729.876, representing a 6.17% increase or Rp 333.115 from the previous year ⁴

Source 4

https://finance.detik.com/berita-ekonomi-bisnis/d-8275822/ump-jakarta-2026-diputuskan-naik-jadi-rp-5-7-juta

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Regional Variations in Wage Adjustments

Other major provinces have also implemented notable increases:

• West Java: Rp 2.317.601 (5.7% increase) ¹
  Source 1

  https://finance.detik.com/berita-ekonomi-bisnis/d-8276150/ump-jawa-barat-2026-naik-jadi-rp-2-317-601
• Yogyakarta: Rp 2.417.495 (6.78% increase) ²
  Source 2

  https://finance.detik.com/berita-ekonomi-bisnis/d-8275880/ump-yogyakarta-2026-naik-rp-153-ribu-jadi-rp-2-41-juta

These adjustments were made according to the new wage regulation formula introduced by the government: Inflation + (Economic Growth x Alpha), where Alpha ranges between 0.5 and 0.9 ³

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Jakarta's Detailed Implementation

In Jakarta, Governor Pramono Anung revealed that the province used an Alpha value of 0.75 for the calculation, which is higher than the employer's initial proposal of 0.55 but lower than the labor union's demand of above 0.9 ⁵

. The new minimum wage will be effective from January 1, 2026 ⁶

Source 6

https://finance.detik.com/berita-ekonomi-bisnis/d-8275938/pengusaha-yang-tak-ikuti-kenaikan-ump-bakal-ditindak

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Enforcement and Compliance

Governor Pramono warned that companies failing to comply with the new minimum wage will face strict penalties ⁶

. This enforcement measure aims to ensure that all businesses operating in Jakarta adhere to the new regulation.

National Context and Implications

The minimum wage adjustments across various provinces reflect the government's effort to balance economic growth with worker welfare. The formula used allows for regional flexibility while maintaining a standardized approach.