The Jakarta Special Region Government announced the 2026 Provincial Minimum Wage (UMP) at IDR 5,729,876 per month, an increase of 6.17% (IDR 333,115 increase) from IDR 5,396,900 in 2025. The Governor stated at a press conference that the UMP adjustment is based on government regulations, which stipulate that the alpha coefficient assumption range is 0.5 to 0.9.
After discussion at the Jakarta Wage Council meeting, the α value of 0.75 was finally adopted. He emphasized that all companies in Jakarta must comply with this minimum wage standard starting from 2026, and the government will take serious action against any company that fails to comply. According to data from the Central Bureau of Statistics (BPS), as of August 2025, the average annual wage increase for national workers was only about 1.94%, even lower than the previous year's inflation rate of 2.86% in October 2025.
The Jakarta Special Region Government announced the 2026 Provincial Minimum Wage (UMP) at IDR 5,729,876 per month, an increase of 6.17% (IDR 333,115 increase) from IDR 5,396,900 in 2025. The Governor stated at a press conference that the UMP adjustment is based on government regulations, which stipulate that the alpha coefficient assumption range is 0.5 to 0.9.
After discussion at the Jakarta Wage Council meeting, the α value of 0.75 was finally adopted. He emphasized that all companies in Jakarta must comply with this minimum wage standard starting from 2026, and the government will take serious action against any company that fails to comply. According to data from the Central Bureau of Statistics (BPS), as of August 2025, the average annual wage increase for national workers was only about 1.94%, even lower than the previous year's inflation rate of 2.86% in October 2025.