Jakarta. The government decided not to rush with the provincial minimum wage announcement as they intend to have some more internal discussions first, according to a minister.

Indonesia was supposed to announce the provincial minimum wage on Friday as businesses and workers are split on how high the hike should be. Home Affairs Minister Tito Karnavian recently told reporters that the government decided to take its time, citing that the wage threshold was something that would affect many parties, including the employers, workers, and local governments.

“So the discussions will involve a number of ministries, including Manpower Minister [Yassierli], Chief Human Development Minister [Pratikno], Trade Minister [Budi Santoso], and Chief Economic Affairs Minister [Airlangga Hartarto],” Tito said on the sidelines of the 2025 ESG Appreciation Night event hosted by B-Universe in Jakarta.

Tito said that the provincial minimum wage was closely related to regional conditions. The Home Affairs Ministry provides insights on regional fiscal capacity, social conditions, and economic disparities in each region. The minister added that a data-driven approach from the regions was crucial to ensure that the decisions would not burden   employers while still protecting workers. The government also involves the Indonesian Employers Association (Apindo), the Chamber of Commerce and Industry (Kadin), and labor unions. 

“Manpower Minister will announce the minimum wage. We will provide the input,” Tito stated.

Earlier that day, Yassierli said that the Manpower Ministry had set up a special team to define standards and estimate the cost of decent living across regions. The future adjustments will no longer be based on a single national reference figure. It will instead reflect the economic conditions and growth levels of each province, city, and regency.

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