November 26, 2025 | 01:59 pm
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 confirmed that the government cannot provide a definitive timeline for the announcement as a new government regulation (PP) on minimum wages is still being drafted.
Yassierli said the UMP would be issued before December 31, 2025, ahead of its implementation in January 2026.
“We want this regulation to be fully prepared, and at this stage we cannot set a specific deadline for its completion,” he told reporters at the Manpower Ministry office in Jakarta on Wednesday, November 26, 2025.
He added that the ministry cannot disclose details of the 2026 UMP while discussions are ongoing. 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.
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