Jakarta government asks companies to comply with minimum wage standards

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The Jakarta SAR government announced the provincial minimum wage (UMP) for 2026 at Rp 5,729,876/month, an increase of 6.17% (Rp 333,115 increase) from Rp 5,396,900 in 2025.The governor said in a press release that the UMP adjustment is based on a government regulation that provides for the calculation of the UMP'salpha coefficientAssuming a range of 0.5 to 0.9The

The alpha value of 0.75 was finally adopted for the calculation after discussion at the Jakarta Wage Council meeting. He emphasized that all businesses in Jakarta must comply with this minimum wage from 2026, and that the government will take serious action if any business fails to do so. Data from the Central Bureau of Statistics (BPS) shows that as of August 2025, theThe national average labor salary has risen at an annual rate of only about 1.94%, even lower than October 2025Inflation rate of 2.86% in the previous yearThe

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