UMP 2026 Announcement Expected Today as Provinces Finalize Living Costs

Government Guidelines for UMP 2026

The Indonesian government is set to announce the Provincial Minimum Wage (UMP) for 2026 today, December 24, 2025 ¹

. According to Government Regulation (PP) No. 49/2025, the UMP calculation will be based on inflation rate plus economic growth multiplied by alpha index ¹

Source 1

https://newssetup.kontan.co.id/news/ump-2026-wajib-diumumkan-hari-ini-cek-khl-38-provinsi-khl-yogya-jauh-di-atas-ump

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Key Factors in UMP Determination

1. Decent Living Needs (KHL): The Ministry of Manpower has calculated KHL for 38 provinces, showing significant variations across regions ¹
   Source 1

   https://newssetup.kontan.co.id/news/ump-2026-wajib-diumumkan-hari-ini-cek-khl-38-provinsi-khl-yogya-jauh-di-atas-ump
   .
2. Economic Conditions: Provincial economic growth and inflation rates will influence the final UMP figures.
3. Alpha Index: Ranging between 0.5-0.9, this factor represents labor's contribution to regional economic growth.

Regional Variations

The KHL calculations show significant differences between provinces. For instance, Yogyakarta's KHL is notably higher than its current UMP ¹

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Jakarta's UMP Announcement Delayed

Interestingly, Jakarta's UMP 2026 announcement is expected tomorrow, December 25, 2025, as stated by Governor Pramono Anung ²

. The delay follows extensive discussions by the Regional Wage Council.

Implications

The UMP 2026 announcements will have significant implications for both workers and businesses across Indonesia. Higher UMP could lead to increased operational costs for companies, potentially affecting employment and economic growth.