The Jakarta Provincial Government has officially announced a 6.17 percent increase in the 2026 Provincial Minimum Wage (UMP). With this adjustment, the monthly minimum wage rises to IDR 5,729,876, up from approximately IDR 5.39 million in 2025.
The decision was made following discussions with the Wage Council, which includes representatives from the government, employers, and workers. The UMP determination also aligns with the latest wage policy regulations. The 2026 UMP will take effect on January 1, 2026, and will be mandatory for all companies operating in the Jakarta region.
Jakarta Governor Pramono Anung explained that the wage increase was calculated by taking into account inflation and economic growth, using an alpha value of 0.75. This approach is intended to strike a balance between protecting workers’ purchasing power and ensuring business sustainability.
Through this policy, the government hopes to improve workers’ welfare without placing excessive pressure on employers. Nevertheless, differing views remain between labor unions and business groups regarding the ideal level of wage increase.
