December 24, 2025 | 04:28 pm
TEMPO.CO, Jakarta - Indonesia’s capital city, Jakarta, will raise its provincial minimum wage (UMP) for 2026 to Rp5.72 million, Governor Pramono Anung Wibowo announced on Wednesday.
Pramono made the announcement after a series of meetings with the Jakarta Wage Council.
“It has been agreed to raise the provincial minimum wage of Jakarta for 2026 to Rp5,729,876,” he said in a press statement at Jakarta City Hall on Wednesday, December 24, 2025.
The new UMP represents a 6.17 percent increase from the 2025 level of Rp5,396,761, translating into an additional Rp333,115 for workers.
Pramono said the calculation of Jakarta’s 2026 UMP follows a national formula stipulated in Government Regulation No. 49 of 2025 on wages. Under the regulation, the minimum wage is calculated using the formula: inflation plus economic growth multiplied by an “alpha” coefficient.
The central government has set the alpha range for the 2026 UMP between 0.5 and 0.9, with provincial governments authorized to determine the final figure within that range.
Pramono said the Jakarta administration selected an alpha of 0.75, a figure he said had been agreed upon by representatives of workers and employers in the Jakarta Wage Council.
However, the regulation has drawn criticism from labor groups. Sunarno, chairman of the All-Indonesia Labor Union Confederation (KASBI), said Government Regulation No. 49 of 2025 was drafted with limited participation from labor unions.
“The regulation was issued close to the deadline, just before Christmas and the New Year, when discussions on wage increases should have already been concluded,” Sunarno said during an online discussion titled Fighting Cheap Wage Politics, Fighting Inequality on Saturday, December 20, 2025.
Anastasya Lavenia Yudi contributed to the writing of this article.
Read: List of 2026 Provincial Minimum Wage Hikes Across Indonesia
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