West Java Announces 2026 Minimum Wage: UMP Remains Low, Some Regency Wages Rise

Provincial Minimum Wage Details

The West Java provincial government has officially announced the 2026 minimum wage rates for both provincial (UMP) and regency/city (UMK) levels. The UMP for 2026 has been set at Rp 2,317,601, representing a 5.767% increase or an additional Rp 126,368.82 compared to the 2025 rate of Rp 2,191,232.18. This adjustment follows the national wage formulation with an alpha value of 0.7 as per prevailing regulations.

Regional Wage Variations

While the provincial minimum wage remains relatively low - being the lowest in Indonesia - several regency minimum wages (UMK) in West Java are significantly higher, with some approaching nearly Rp 6 million. This discrepancy highlights the varying economic conditions across different regions within the province. The decision to maintain a lower provincial minimum wage while allowing higher regency wages reflects the government's effort to balance between supporting worker welfare and maintaining business viability across different economic zones.

Policy Rationale and Implementation

The wage setting was formalized through Governor's Decree Number 561/Kep.859-Kesra/2025, issued on December 23, 2025. This policy decision aims to maintain worker purchasing power while ensuring business stability throughout West Java. The new rates became effective on January 1, 2026, providing businesses with sufficient notice to adjust their payroll structures accordingly.