Jakarta. Acting Jakarta Governor Teguh Setyabudi has announced that Jakarta's provincial minimum wage (UMP) for 2025 will rise to Rp 5.4 million ($339.6) per month, reflecting a 6.5 percent increase from the previous year’s Rp 5.07 million. 

Last month, President Prabowo approved the 6.5 percent nationwide wage increase as a middle ground between employer proposals for a 3 percent raise and worker demands for a 10 percent hike. 

According to the Manpower Ministry Regulation No. 16 of 2024, provinces are required to finalize minimum wage announcements by Dec. 11, with district and city wages to follow by Dec. 18. The new wages will take effect on January 1, 2025.

"The Jakarta UMP for 2025 has been determined with a 6.5 percent increase, bringing it to Rp 5.4 million," Teguh said during a press conference in Kemayoran, Central Jakarta, on Wednesday.

The Jakarta Provincial Government reached the decision after discussions with various stakeholders, including the Jakarta Wage Council, on Dec. 9-10, 2024.

"I have signed the governor's decree regarding this. The Jakarta UMP also applies to workers with less than one year of service," Teguh added.

Jakarta’s Head of Manpower, Transmigration, and Energy Agency, Hari Nugroho, said that the wage hike seeks to balance worker welfare while protecting business sustainability.

“The discussions on the sectoral wages and Jakarta UMP focused on balancing workers’ needs and business continuity,” Hari said.

Similar adjustments are being implemented in other provinces. In East Kalimantan, Indonesia’s coal mining heartland, the local government confirmed a 6.5 percent increase, raising the monthly UMP from Rp 3.36 million  to Rp 3.58 million. 

Meanwhile, Bali has seen smooth progress in its wage discussions. The province’s Wage Council has agreed on the 6.5 percent increase, bringing the UMP to Rp 2.99 million for 2025.