November 27, 2025 | 09:59 pm
TEMPO.CO, Jakarta - President Prabowo Subianto has agreed to a proposal that the 2026 minimum wage will not be set as a specific, fixed figure but will instead be presented as a range.
Minister of Manpower, Yassierli, confirmed the decision after a limited meeting with the President and ministers at the Presidential Palace in Central Jakarta on Thursday, November 27, 2025.
"A single figure does not solve the problem of disparity. That's why we proposed a range, and Prabowo agreed to that," Yassierli said.
The new range scheme is designed to give regional governments the option to determine the final minimum wage amount. This approach is in line with the Constitutional Court (MK) Decision Number 168 of 2023, which grants each Regional Wage Council the authority to propose the minimum wage increase to the Governor.
Under this scheme, the central government will issue guidelines in the form of a minimum wage range. Regional governments will then determine a suitable amount from this range based on their specific economic growth conditions, inflation rate, and the local cost of living.
"We provide guidelines in the form of a range. Later, regional governments will determine it themselves," Yassierli explained. The Ministry of Manpower expects this new structure to help narrow the wage disparity between regions.
Yassierli confirmed that the ministry has formed a team to calculate the estimated decent standard of living to support this new formula.
Indah Anggoro Putri, Director General of Industrial Relations and Social Security for Workers at the Ministry of Manpower, clarified that the intended range in the calculation is related to the alpha index.
The alpha index is a variable representing labor's contribution to the economic growth of a province or district/city. It functions as a multiplier in a province's or city's economic growth before being added to the inflation rate.
While the core minimum wage formula remains the same as stipulated in Government Regulation Number 51 of 2023, the adjustment involves expanding the alpha index beyond its previous range of 0.1–0.3. This adjustment is necessary to comply with the Constitutional Court's directive to include the decent standard of living aspect in the minimum wage calculation.
Indah assured that the minimum wage for 2026 will still take effect on January 1 next year, even though the typical announcement date of November 21, 2025, has passed. She claimed the drafting of the necessary Government Regulation (PP) is nearing completion and has been discussed with relevant ministries/agencies, labor unions, and employers.
Anastasya Lavenia Yudi contributed to this report
Editor’s Choice: Delay in Indonesia's 2026 Minimum Wage Announcement Sparks Concerns in Manufacturing Sector
Click here to get the latest news updates from Tempo on Google News
Prabowo Calls for Ministries' Swift Handling of Natural Disasters
1 jam lalu
Indonesian President Prabowo Subianto has urged his ministers to swiftly coordinate the handling of disaster-struck regions.
Minister Purbaya Requests One Year to Improve Customs and Excise DG
3 jam lalu
Minister of Finance Purbaya Yudhi Sadewa has asked President Prabowo Subianto for one year to fix the Customs and Excise agency.
Prabowo Holds Limited Cabinet Meeting on Sumatra Flood Response and 3-Kg LPG Subsidies
3 jam lalu
A number of ministers visited the Presidential Palace in Central Jakarta on Thursday afternoon for a closed meeting with President Prabowo.
Prabowo Orders Strict Enforcement to Regulate Unsupervised IMIP Airport
7 jam lalu
President Prabowo Subianto gave directions to enforce regulations on activities at the Indonesia Morowali Industrial Park (IMIP) Airport.
Iranian Ambassador Confirms Prabowo's Official Visit Invitation to Tehran
11 jam lalu
Iran expresses hope for President Prabowo Subianto to make a state visit to Tehran, following an official invitation received by Indonesia.
VP Gibran Reports South Africa G20 Summit Results to Prabowo
1 hari lalu
VP Gibran emphasizes Indonesia's commitment to promoting access to technology, equality, and global partnerships based on justice.
Prabowo Allocates 300 Hectares for Indonesia's New National Sports Center
1 hari lalu
The National Sports Center will have sports academies, dormitory facilities, integrated training facilities, and health support services for athletes.
Prabowo Grants Rehabilitation for Three ASDP Corruption Convicts
2 hari lalu
The Corruption Court of the Central Jakarta District Court previously sentenced Ira Puspadewi to 4.5 years in prison.
How Civil Society Fought the KUHAP Revision
2 hari lalu
Civil society groups attempt to block the passage of the revised Criminal Procedure Code.
TNI Justifies Illegal Mining Involvement as Prabowo's Direct Order
2 hari lalu
The TNI Information Center head emphasized that the military's role in the illegal mining areas is unrelated to traditional law enforcement.
