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On top of the nationwide wage increase, minimum wages in various sectors will be set by the respective provincial and district wage councils.
Indonesia’s national average minimum wage will be seeing a 6.5% increase effective 2025, as announced by President Prabowo Subianto last Friday (28 November), mentioning the 2025 Provincial Minimum Wage (UMP also known as 'Upah Minimum Provinsi') at a press conference.
As cited by the Daily Express, President Prabowo said that the wage increase initially proposed by Manpower Minister Yassierli was 6%. However, discussions and meetings with labour leaders led to the final decision to set the increment to 6.5% instead.
The minimum wage increment is said to help improve workers’ purchasing power while taking the competitiveness of businesses into consideration. The UMP, it was cited, is essential as a social safety net for workers and their basic needs, especially those employed for less than 12 months.
President Prabowo also shared on Facebook that “Welfare of workers is of utmost importance. We will continue to fight for their welfare improvement.”
On top of the nationwide wage increase, it should be noted that minimum wages in various sectors will be set by the respective provincial and district wage councils.
According to The Business Times, this change comes as the Constitutional Court had initially ordered changes to the 2020 Job Creation Law which led to the wage increase conversation.
President of the Indonesian Trade Union, Iqbal shared that the average provincial minimum wage for 2024 is 3.1mn Rupiah and workers are accepting of the new increment set for the new year.
Further details on the implantation of the new wage increment value will be regulated by the Manpower Ministry’s regulations. As cited by Antara, the regulation is currently in the drafting stage and will further specify details of the increment. The regulation will be issued no later than 4 December 2024.
The national leader also provided an update on the provision of free nutritious meals for children and pregnant women, whereby the previous estimate of 15,000 Indonesia rupiah has since been brought down to a budget of 10,000 rupiah per serving, as noted by The Edge Malaysia.
Lead image/ Prabowo Subianto Facebook
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