Executive Summary

Key insights and market outlook

The Indonesian government is taking two significant labor-related moves: proposing Work From Anywhere (WFA) for December 29-31, 2025 to boost mobility during the holiday season ²

⁴, and introducing new minimum wage regulations for 2026 that will give more authority to regional wage councils ¹³. The new wage rules, expected to be signed by President Prabowo Subianto soon, aim to create a more equitable system by considering regional living costs.

Full Analysis

02

Deep Dive Analysis

Indonesian Government Proposes WFA and New Minimum Wage Rules

Dual Labor Initiatives

The Indonesian government is advancing two major labor-related initiatives simultaneously. Minister of Manpower Yassierli announced that the new minimum wage regulation for 2026 is ready to be signed by President Prabowo Subianto, potentially as early as today or tomorrow ¹

³.

Work From Anywhere Proposal

In a separate move, Coordinating Minister for Economic Affairs Airlangga Hartarto proposed implementing Work From Anywhere (WFA) from December 29-31, 2025. This proposal, presented during a Cabinet Session, aims to enhance family mobility during the Christmas and New Year holiday period ²

⁴. The suggestion received positive reception from President Prabowo, who showed his approval by clapping ⁴.

New Minimum Wage Framework

The upcoming minimum wage regulation for 2026 introduces significant changes to the current system:

Enhanced regional autonomy: Regional Wage Councils will have greater authority in determining minimum wage rates
Cost of living adjustment: The new framework will consider the 'Kebutuhan Hidup Layak' (KHL) or decent living needs specific to each region
Wider alpha range: The new regulation will provide a broader range for wage calculations, allowing for more nuanced regional considerations ¹
Source 1
https://finance.detik.com/berita-ekonomi-bisnis/d-8261421/aturan-upah-minimum-2026-di-meja-prabowo-tinggal-diteken
³
Source 3
https://nasional.kontan.co.id/news/menaker-umumkan-ump-2026-besok-selasa-1612-skema-baru-diklaim-lebih-berkeadilan

Minister Yassierli emphasized that these changes are designed to create a more equitable system that better reflects regional economic conditions while fulfilling the Constitutional Court's mandate ³

.

Economic and Social Implications

The proposed WFA period from December 29-31 aims to:

Boost family mobility during the holiday season
Stimulate consumption and economic activity
Provide flexibility for workers while maintaining productivity

The combination of these labor initiatives demonstrates the government's proactive approach to balancing economic growth, worker welfare, and business needs.

References