Indonesia Delays 2026 Minimum Wage Announcement to December

New Government Regulation Under Development

The Indonesian government has postponed the announcement of the 2026 Provincial Minimum Wage (UMP) to December 2025. Minister of Manpower Yassierli stated that the delay is necessary to finalize a new Government Regulation (PP) that will serve as the legal basis for the wage adjustment. The new UMP is expected to be implemented starting January 2026.

Rationale Behind the Delay

Yassierli explained that the original schedule for announcing the UMP on November 21 has been pushed back due to the need to prepare the new PP. This regulation will replace or amend existing rules related to wages. The minister emphasized that the government is working diligently to ensure the new UMP is announced before the end of December 2025, as mandated.

Implications for Workers and Businesses

The announcement of the 2026 UMP is a significant event for both workers and businesses across Indonesia. A timely announcement will help employers plan their budgets for the upcoming year, while workers are eagerly awaiting the adjustment to their minimum wage. The government's decision will have implications for labor costs, potentially affecting various sectors of the economy.