Executive Summary

Key insights and market outlook

Multiple Indonesian provinces have announced their 2026 minimum wage increases, with varied percentage changes across regions. Jakarta's minimum wage rises by 6.17% to Rp 5.73 million, while West Java sees a 5.7% increase to Rp 2.32 million ¹

. Labor unions have criticized the adjustments, arguing they remain insufficient to meet living costs ²⁶.

Full Analysis

02

Deep Dive Analysis

Indonesian Provinces Announce 2026 Minimum Wage Adjustments

Varied Increases Across Regions

Indonesian provinces have announced their 2026 minimum wage adjustments, showing significant regional variations. DKI Jakarta's minimum wage has been set at Rp 5,729,876, representing a 6.17% increase from the previous year ¹

. West Java's provincial minimum wage has been adjusted to Rp 2,317,601, marking a 5.7% rise ¹.

Regional Disparities in Minimum Wage

The regency/city minimum wages (UMK) in West Java show significant variation. Bekasi City has the highest UMK at Rp 5,999,443, while Banjar City has the lowest at Rp 2,361,241 ¹

. In Banten, the provincial minimum wage has been set at Rp 3,100,881, representing a 6.74% increase ¹.

Labor Union Reactions

Labor unions have expressed dissatisfaction with the new minimum wage adjustments. The Indonesian Workers Confederation (KSPI) has rejected Jakarta's new minimum wage, arguing that the adjustment mechanism using an alpha index of 0.75 does not adequately protect workers' interests ⁶

. Similar concerns were raised by the Indonesian Workers Union (KSPN), which noted that the varied adjustments across regions are widening wage disparities ⁷.

Special Considerations for Certain Provinces

The Ministry of Manpower has indicated that Aceh Province will likely maintain its 2025 minimum wage level of Rp 3,685,615 due to post-disaster conditions ⁴