Jakarta, hitclubapk3 Indonesia
—
President
Prabowo Subianto
establishes a new formula for calculating the provincial minimum wage (
UMP
) laborer.
This is stated in the Government Regulation (PP) on Wages which Prabowo just signed on Tuesday (16/12).
”
Thank God
“The PP on Wages has been signed by President Prabowo Subianto today, Tuesday, December 16 2025,” said Yassierli in a written statement.
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In the latest regulation, Prabowo decided on a wage increase formula of Inflation + (Economic Growth x Alpha) with an Alpha coefficient range of 0.5-0.9.
“The process of drafting this PP on Wages has gone through quite a long study and discussion, and the results have been reported to the President. After paying attention to input and aspirations from various parties, especially from the Workers’ Unions,” said Yassierli.
The calculation of the 2026 minimum wage increase will be carried out by the Regional Wage Council to be submitted as a recommendation to the Governor.
Apart from the issue of the UMP formula, the PP on Wages also regulates the determination of the UMP and Regency/City Minimum Wage (UMK) by the governor.
The regulation also stipulates that the Governor is obliged to determine the Provincial Sectoral Minimum Wage (UMSP) and can also determine the Regency/City Sectoral Minimum Wage (UMSK).
“Specifically for 2026, the Governor will determine the amount of wage increases no later than December 24 2025,” he said.
Yassierli explained that the issuance of the new PP on Wages was a form of commitment to implementing the Constitutional Court’s decision Number 168/2023.
Previously, the government had stipulated PP Number 51 of 2023 concerning Amendments to Government Regulation Number 36 of 2021 concerning Wages.
However, PP51/2023 is no longer valid because it was canceled by the Constitutional Court (MK) Decision Number 168/PUU-XXII/2024 regarding the judicial review of the Job Creation Law (UU).
In 2025, the UMP calculation formula is stipulated in the Minister of Manpower Regulation Number 16 of 2024 concerning Determination of the 2025 Minimum Wage.
In Article 2 paragraph (2) Permenaker 16/2024, it is stipulated that UMP 2025 = UMP 2024 + UMP Increase Value.
The 2025 UMP increase value set is 6.5 percent.
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(ldy/sfr)