Jakarta – The government has affirmed its commitment to increasing workers’ purchasing power through the policy of establishing the 2026 Provincial Minimum Wage (UMP), which is formulated objectively, measurably, and fairly. The government also calls on all elements of society to reject provocative narratives that encourage massive labor demonstrations and have the potential to disrupt national stability and the economic climate.
The 2026 UMP is determined across all provinces based on a wage formula that takes into account inflation, economic growth, and labor productivity. The government views this policy as a form of state involvement in protecting workers while maintaining business continuity amidst ongoing global economic challenges.
The Minister of Manpower, Yassierli, emphasized that the 2026 UMP policy is designed to strike a balance between improving worker welfare and strengthening the business sector.
“The increase in the 2026 Provincial Minimum Wage (UMP) is able to maintain and increase workers’ purchasing power. However, at the same time, we must also ensure the business sector remains healthy so that layoffs do not occur and jobs remain available,” said Yassierli.
The government regrets that parties are exploiting the UMP issue to provoke workers into unconstructive demonstrations. According to the government, all workers’ aspirations have been facilitated through social dialogue mechanisms, including the Wage Council, which involves government officials, employers, and labor unions.
Meanwhile, Jakarta Governor Pramono Anung stated that the determination of the 2026 Provincial Minimum Wage (UMP) in Jakarta was the result of a thorough review process and dialogue with all stakeholders.
“We set the 2026 UMP based on applicable regulations and Jakarta’s economic conditions, but we reject any form of provocation that could disrupt public order and harm workers themselves,” he emphasized.
The government believes that social and economic stability are the primary prerequisites for the sustainable improvement of workers’ welfare. Unfair demonstrations are feared to undermine investor confidence and hamper economic growth, ultimately impacting workers.
Going forward, the government is committed to continuing to strengthen social dialogue, improve labor protection, and ensure that wage policies serve as a strategic instrument in driving inclusive and sustainable national economic growth.