Recently, Indonesia announced that starting from 2025, the minimum wage standards (UMP) in all 38 provinces will be uniformly increased by 6.5%. The core goal of this adjustment is to adapt to the continuous development of the socio-economy and alleviate the pressure of inflation and rising living costs.

The adjustment of the minimum wage standard is mainly based on the following key factors:

  1. Social and economic development: comprehensive consideration of national economic growth and development trends.
  2. Market inflation: to cope with inflation and ensure that workers' purchasing power does not decline.
  3. Rising living costs: ensure wages can cover basic living expenses.

The government adjusts the minimum wage standard annually to achieve the following goals:

  • Increase productivity: motivate workers and laborers by ensuring salary levels.
  • Reduce poverty and unemployment: improve the living standards of low-income groups and promote employment.
  • Enhance social purchasing power: strengthen people's consumption capacity and stimulate domestic demand.
  • Narrow regional wage gaps: prevent imbalance in salary levels between different provinces.
The following are the 2025 minimum wage standards for some regions (shown in Indonesian Rupiah and RMB):
Province Indonesian Rupiah RMB (approx) Province Indonesian Rupiah RMB (approx)
Jakarta Special Capital Region 5,396,761 2453 Jambi Province 3,234,533 1470
Papua Province 4,285,847 1948 Gorontalo Province 3,221,731 1464
South Papua Province 4,285,847 1948 Maluku Province 3,141,699 1428
Highland Papua Province 4,285,847 1948 West Sulawesi Province 3,104,430 1411
West Papua Province 4,285,847 1948 Southeast Sulawesi Province 3,073,551 1397
Central Papua Province 4,285,848 1948 Bali 2,996,561 1362
Bangka Belitung Islands Province 3,876,600 1762 West Sumatra Province 2,994,193 1361
North Sulawesi Province 3,775,425 1716 North Sumatra Province 2,992,559 1359
Aceh Province 3,685,615 1675 Central Sulawesi Province 2,914,583 1325
South Sumatra Province 3,681,570 1673 Banten Province 2,905,120 1321
South Sulawesi Province 3,657,527 1663 Lampung Province 2,893,069 1315
Riau Islands Province 3,623,653 1647 West Kalimantan Province 2,878,286 1308
West Papua Province 3,613,545 1643 Bengkulu Province 2,670,039 1214
North Kalimantan Province 3,580,160 1627 West Nusa Tenggara Province 2,602,931 1183
East Kalimantan Province 3,579,313 1627 East Nusa Tenggara Province 2,328,969 1059
Riau Province 3,508,775 1595 East Java Province 2,305,984 1048
South Kalimantan Province 3,496,194 1589 Yogyakarta Special Region 2,264,080 1029
Central Kalimantan Province 3,473,621 1579 West Java Province 2,191,232 996
North Maluku Province 3,408,000 1549 Central Java Province 2,169,348 986
Note: RMB conversion based on exchange rate 1 RMB ≈ 2200 IDR. Through this adjustment of the minimum wage standard, the Indonesian government demonstrates its attention to workers' rights and its pursuit of balance between economic development and social equity. In the future, Indonesia's labor market will continue to develop in a healthier and more stable direction.