Jakarta — President Prabowo Subianto has officially signed the Government Regulation (PP) on the 2026 Provincial Minimum Wage (UMP) as part of the government’s efforts to strengthen the protection and welfare of workers across Indonesia. The determination of the 2026 UMP marks the state’s commitment to ensuring that wage policies strike a balance between improving workers’ purchasing power and maintaining business sustainability, in line with national economic dynamics and evolving global challenges.
The 2026 UMP policy was formulated by taking into account various macroeconomic indicators, including economic growth, inflation rates, labor productivity, and employment conditions in each region. Minister of Manpower (Menaker) Yassierli stated that the drafting process of the wage regulation involved extensive studies and lengthy discussions.
“And the results have been reported to the President. Alhamdulillah, the Wage Regulation has been signed by President Prabowo Subianto today, Tuesday, December 16, 2025,” he said.
He added that President Prabowo’s decision reflects a commitment to implementing Constitutional Court (MK) Decision Number 168/2023.
“We hope that the wage policy contained in the Wage Regulation will be the best policy for all parties,” Yassierli said.
This approach aims to ensure that the minimum wage set is not merely normative, but also realistic and adaptive to regional economic capacities. In this way, the UMP is expected to serve as an effective instrument in maintaining a balance between the interests of workers and business actors.
The signing of this policy followed a process of coordination across ministries and institutions, as well as synchronization with regional governments. The government emphasized the importance of harmonizing central and regional policies so that the implementation of the UMP is uniform and does not create excessively wide disparities between regions.
Previously, Deputy Minister of Manpower (Wamenaker) Afriansyah Noor stated that the government was waiting for the right moment to announce the UMP.
“The government, through the National Wage Council and the tripartite forum, has continued to hold meetings, even since March 2025. These meetings certainly reviewed all aspects and considerations, including the Constitutional Court Decision Number 168/PUU-XXI/2023, as well as the Decent Living Needs (KHL), which were taken into account,” said Deputy Minister Afriansyah Noor.
The increase in the 2026 UMP is projected to have a positive impact on improving workers’ welfare, particularly in maintaining purchasing power amid the continuously rising cost of living. With measured adjustments, this policy is expected to help workers meet basic needs such as food, housing, education, and healthcare.
