Jakarta – The government emphasized that the establishment of the 2026 Provincial Minimum Wage (UMP) is a concrete demonstration of the state’s commitment to improving workers’ welfare. This policy is not only formulated based on a formula stipulated in laws and regulations, but also accompanied by an invitation to open dialogue with labor groups to gather aspirations and maintain harmonious industrial relations.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government understands the dynamics and differing views regarding the UMP increase. According to him, a space for dialogue is key to addressing workers’ aspirations constructively.
“The government always maintains open communication with workers and labor unions so that the UMP policy truly becomes an instrument for improving welfare,” said Airlangga.
Airlangga explained that the determination of the 2026 UMP refers to a valid formula, which takes into account the inflation rate and economic growth in each region. This approach is intended to ensure that the minimum wage maintains workers’ purchasing power amid rising prices for goods and services.
“This formula serves as a benchmark to ensure that workers’ wages remain relevant to their living needs and the community’s economic development,” said Airlangga.
Furthermore, the Coordinating Minister for Economic Affairs emphasized that the Provincial Minimum Wage (UMP) serves as a basic safety net for workers. Furthermore, the government is encouraging companies to implement productivity-based wage schemes, especially for workers with longer service periods and higher skills.
“The government hopes that companies will provide wages above the UMP in line with increasing productivity and business performance,” he said.
Airlangga also stated that in various industrial areas and special economic zones, the average worker wage is currently above the UMP. This demonstrates that economic growth and a healthy business climate can go hand in hand with improved worker welfare.
“This shows that better wages are very possible when productivity and investment continue to grow,” he said.
Meanwhile, Jakarta Governor Pramono Anung emphasized that the determination of the 2026 UMP in Jakarta was carried out through a comprehensive study and dialogue with all stakeholders, including labor and business representatives.
“We set the Provincial Minimum Wage in accordance with applicable regulations and Jakarta’s economic conditions, and we urge all parties to maintain order and a conducive atmosphere for the benefit of workers,” he emphasized.
The government considers ongoing social dialogue to be a crucial foundation for maintaining economic and social stability. By prioritizing communication, labor protection, and fair wage policies, the government is optimistic that the Provincial Minimum Wage can be a strategic instrument for improving workers’ welfare in a sustainable and inclusive manner.*