Jakarta. Indonesia’s provinces are processing the provincial minimum wage (UMP) hike of 6.5 percent for 2025, following a directive from President Prabowo Subianto. While the government ensures the increase will apply across the nation, provinces are working to finalize their specific wage adjustments amid some regional tensions and worker protests.

In Banten, a province known for its industrial sector and foreign investments, workers have threatened to hold mass protests if their demands for a higher increase are not met. The Alliance of United Workers of Banten (ABUB) has vowed to mobilize up to one million people, citing dissatisfaction with the initial proposals, which were much lower than the 6.5 percent hike recommended by the government.

Tukimin, head of the Banten Federation of Metal Workers (FSPMI), said he was disappointed over the proposal by employers’ association Apindo, which suggested a mere 2.51 percent increase. "This is far from what was expected and goes against the President's instructions,” Tukimin said during a meeting in the provincial labor office. The debate around the increase has reached a standstill, with unions demanding up to an 11.58 percent raise based on the cost of living survey.

In Jakarta, the provincial government is following national guidelines but plans to engage in further discussions with various stakeholders to ensure that the final decision benefits all parties. The capital’s Manpower Agency head, Hari Nugroho, said that a meeting with the Wage Council will take place soon, with final announcements expected by December 11.

In East Kalimantan, Indonesia’s coal mining heartland, the local government confirmed it will implement the 6.5 percent hike, raising the monthly UMP from Rp 3.36 million ($212) to Rp 3.58 million. Rozani Erawadi, Head of the East Kalimantan Labor Office, said that the wage increase is aimed at improving workers' purchasing power while maintaining business stability.

Meanwhile, Bali has seen discussions progress smoothly, with the province’s Wage Council agreeing on the 6.5 percent increase, bringing the UMP to Rp 2.99 million for 2025. The proposal has been submitted to the governor’s office and is expected to be finalized by Dec. 11.

These changes are in line with the Manpower Ministry’s Regulation No. 16 of 2024, which mandates that provinces announce their minimum wage adjustments by Dec. 11, with district/city wages finalized by Dec. 18. The new wage structures will come into effect on January 1, 2025.