Indonesia's 2026 Minimum Wage Announcement Delayed Indefinitely

Uncertainty Surrounds Upcoming Minimum Wage Decision

As of mid-December 2025, the Indonesian government has not released the 2026 Provincial Minimum Wage (UMP), leaving workers and businesses in uncertainty. The delay stems from the pending release of the government regulation that will serve as the basis for the minimum wage determination.

Government Response and Public Reaction

Minister of Manpower, Yassierli, has been evasive when questioned about the UMP increase for 2026. When pressed for details during a recent event at Jakarta International Expo, Yassierli simply stated, "Tunggu aja, kan sudah saya bilang UMP mah tunggu," which translates to "Just wait, I've said to wait for UMP." This response has done little to alleviate the uncertainty surrounding the upcoming minimum wage.

Implications of the Delay

The lack of clarity on the 2026 UMP creates challenges for both employees and employers. Workers are left uncertain about potential changes to their compensation, while businesses face difficulties in planning their labor costs for the upcoming year. The delay also reflects the complexity of wage determination in Indonesia, which involves various stakeholders and economic considerations.

Economic Context and Future Outlook

The decision on the UMP 2026 is crucial as it affects not only workers' welfare but also the overall business environment. A timely announcement is essential for economic planning and stability. Stakeholders are advised to monitor official channels for updates as the situation develops.