Indonesia's Minimum Wage Announcement for 2026 Delayed, Creating Uncertainty

Business Community Expresses Concern Over Delay

As of the third week of December 2025, the Indonesian government has not announced the 2026 Provincial Minimum Wage (UMP), creating significant uncertainty for both businesses and workers. The delay has drawn concern from major business associations, including the Indonesian Employers' Association (Apindo) ¹

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Government Promises Imminent Decision

The Ministry of Manpower has assured that the announcement will be made soon this week ²

. Vice Minister of Manpower, Afriansyah Noor, stated that the decision is being finalized and will be the best possible outcome. However, the ministry did not provide specific details about the factors causing the delay ²

Source 2

https://nasional.kontan.co.id/news/kapan-ump-2026-diumumkan-ini-kata-wamenaker

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Business Uncertainty Grows

The delay in announcing the UMP has heightened uncertainty in the business community. Bob Azam, Chairman of Apindo's Labor Affairs, expressed concern that the late announcement creates significant challenges for business planning and operations. The uncertainty affects not only employers but also workers who are awaiting clarity on their minimum wage adjustments ¹

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Impact on Business Planning

Subchan Gatot, Chairman of Apindo's Labor Committee, emphasized that last-minute announcements of minimum wage adjustments create operational challenges for businesses. The delay complicates financial planning and budgeting processes for companies across various sectors ¹

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