Table of Contents
1. DKI Jakarta
2. South Papua
3. Papua
4. Central Papua
5. Bangka Belitung Islands
Jakarta, hitclubapk3 Indonesia
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The government officially sets wage policies for 2026 after the President
Prabowo Subianto
sign the Government Regulation (PP) on Wages.
This regulation is the basis for determining the Provincial Minimum Wage (UMP) in all regions, including determining the amount of wage increases next year.
Minister of Manpower Yassierli said that the 2026 PP on Wages regulates a new formula for wage increases, namely inflation plus economic growth multiplied by an alpha factor in the range of 0.5 to 0.9.
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The Regional Wages Council determines the amount of the UMP increase and then recommends it to the governor.
“After paying attention to input and aspirations from various parties, especially from Workers’ Unions, the President finally decided on a formula for increasing wages equal to inflation + (economic growth x alpha) with an alpha range of 0.5-0.9,” said Yassierli some time ago.
He added that specifically for 2026, the governor is obliged to determine the UMP no later than December 24 2025.
The following is a list of 5 regions with the highest UMP 2026:
1. DKI Jakarta
As the center of government and the center of national economic activity, DKI Jakarta has once again occupied the top position as the region with the highest UMP in 2026. Jakarta’s UMP is set at IDR 5,729,876 per month, an increase of 6.17 percent or the equivalent of IDR 333,115 compared to the previous year.
This increase is determined using a certain index (alpha) of 0.75 based on the results of discussions by the DKI Jakarta Wage Council.
2. South Papua
The 2026 South Papua UMP is set at IDR 4,508,850, an increase of 5.19 percent or IDR 222,221 from 2025 which was IDR 4,285,850.This determination is the result of a meeting of the South Papua Province Wage Council together with elements of the government and the business world.
3. Papua
The Papua Provincial Government has set the 2026 UMP at IDR 4,436,283.This figure increased by 3.51 percent or IDR 150,433 compared to the 2025 UMP which was recorded at IDR 4,285,850.This determination was made based on the results of the Papua Wage Council session.
4. Central Papua
The 2026 Central Papua UMP is set at IDR 4,285,848.This amount has not increased compared to the previous year.The regional government said the decision was taken based on an analysis of the current economic and employment conditions in the region.
5. Bangka Belitung Islands
The Bangka Belitung Islands Province has set the 2026 UMP at IDR 4,035,000.This figure is an increase of 4.05 percent or the equivalent of IDR 158,400 compared to 2025. This increase is the result of an agreement by the Wages Council taking into account inflation, economic growth and an alpha factor of 0.7.
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