Prabowo Announces 6.5% Increase for 2025 Minimum Wage

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November 29, 2024 | 07:33 pm

TEMPO.CO, JakartaPresident Prabowo Subianto officially announced that the 2025 provincial minimum wage will increase by 6.5 percent today, after a meeting with several ministers at the Presidential Palace complex.  

Prabowo held a limited meeting with Minister of Finance Sri Mulyani, Coordinating Minister for Economic Affairs Airlangga Hartarto, Coordinating Minister for People’s Empowerment Muhaimin Iskandar, and Minister of Manpower Yassierli at the Presidential Office on Friday, November 29, 2024.

Prabowo said the minimum wage is a vital social safety net for workers, especially those who have been employed for less than 12 months, taking into account the need for a decent standard of living.

"Therefore, the minimum wage was determined with the purpose of enhancing workers’ purchasing power while considering business competitiveness," said Prabowo at the Presidential Office today.

The head of state said the provincial, city, and regency wage councils will set the sectoral minimum wage. Meanwhile, more detailed provisions regarding the minimum wage will be regulated under a Minister of Manpower Regulation. 

The Minister of Manpower initially proposed a 6 percent rise in the minimum wage, but the government raised it to 6.5 percent after Prabowo received labor representatives at the Presidential Palace today. 

President of the Labor Party Said Iqbal confirmed to Tempo about the meeting with President Prabowo. Said Iqbal said he approved the minimum wage increase as it’s claimed to be the closest to workers’ aspirations.

"The 2025 minimum wage policy will pay attention to the welfare of workers and the sustainability of the business world," said Said Iqbal in a brief message. 

He stressed that workers will continue to fight for a sectoral minimum wage increase that exceeds the minimum wage. He also mentioned that the laborers still reject the plan to raise the value-added tax by 12 percent and the social security organizer levies.

Editor’s Choice: 2025 Minimum Wage: Prabowo's Govt Cornered Between Workers' Demands and Employers' Suggestions

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