Why Indonesia's 2026 Provincial Minimum Wage Decision Is Being Delayed

Tempo11-26

TEMPO.CO, Jakarta - The Indonesian government has yet to announce the 2026 provincial minimum wage (UMP), with officials saying the policy remains under regulatory review.Manpower Minister Yassierli ...

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The wage decision can only be announced once the PP is signed by President Prabowo Subianto.The minister noted that the 2026 wage-setting process requires more time due to the inclusion of a new component: the Decent Living Needs (KHL) indicator, which must be recalculated. The government, he said, wants the KHL assessment to be “thorough and comprehensive” before the final wage formula is determined.Under Government Regulation No. 36/2021, minimum wages should be announced by November 21 each year. However, Yassierli explained that the deadline no longer applies because the legal basis for the wage formula is shifting from a ministerial regulation (Permenaker) to a higher-level government regulation.Business groups say the delay has already affected corporate planning. The Indonesian Employers' Association (Apindo) warned that the uncertainty disrupts companies preparing their annual work plans and budgets (RKAP).“We regret the postponement. RKAP should ideally be completed around September,” said Bob Azam, Chair of Apindo’s Manpower Division, in Jakarta on Tuesday, November 25, 2025.He urged the government not to introduce any last-minute formula changes, arguing that such revisions “disrupt companies.”Apindo also called for the minimum wage calculation to be proportional and aligned with regional economic conditions, productivity levels, and sectoral business capacities.Alfitria Nefi Pratiwi contributed to the writing of this article.Editor’s Choice: Over 62,000 Graduates Pass Indonesia's National Internship Program Batch IIClick here to get the latest news updates from Tempo on Google News","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2586526324","isCrawlerRequest":true}