The 2026 Provincial Minimum Wage (UMP) is Confirmed to Increase, but the Government Warns of Provocative Actions That Will Harm Workers
Jakarta – The government continues to promote a balanced wage policy amidst global economic challenges. The 2026 Provincial Minimum Wage (UMP) is positioned as a crucial instrument for maintaining workers’ purchasing power while ensuring the sustainability of businesses in various regions.
Therefore, the government urges all parties not to be easily provoked by calls for demonstrations that could potentially disrupt social stability and the investment climate. Workers’ aspirations are still guaranteed, but they are expected to be conveyed constructively and through dialogue to achieve the goal of improving workers’ welfare without sacrificing business continuity and employment.
Heru Tjahjono, a member of Commission IX of the Indonesian House of Representatives (DPR RI), emphasized that the determination of the 2026 UMP must be guided by Government Regulation No. 49 of 2025 concerning Wages and based on a spirit of togetherness between the government, workers, and businesses. He argued that the minimum wage policy should not be understood narrowly as a mere administrative obligation.
“The UMP should not be understood merely as an administrative figure, but rather should realistically reflect the regional economic conditions to have a positive impact on the community and businesses,” Heru said.
He explained that the process of determining the UMP has now entered a crucial stage, as most provincial governments in Indonesia have announced the latest minimum wage levels.
This policy is considered strategic for protecting workers’ welfare while maintaining business continuity amidst the dynamics of the national and global economy.
Based on the latest data, 36 of 38 provinces have set the 2026 UMP. The highest UMP is still recorded in DKI Jakarta at Rp5,729,876, while other provinces adjust to the economic conditions, productivity, and business capabilities in each region.
Heru added that a proportional increase in the UMP has the potential to boost people’s purchasing power, especially for workers with minimum incomes.
“This increase in purchasing power will impact household consumption and have a multiplier effect on the MSME, trade, and services sectors,” he explained.
Transparency in the use of wage indexes and formulas in each province is considered an important factor in maintaining public trust and the effectiveness of the UMP policy.
Previously, the government announced changes to the formula for determining the 2026 UMP by expanding the alpha index range from 0.1–0.3 to 0.5–0.9.
The Minister of Manpower, Yassierli, announced the policy to determine the 2026 UMP as a follow-up to President Prabowo Subianto’s directive, with the aim of strengthening worker protection without neglecting the sustainability of the business world.
The Executive Director of the Great Institute, Dr. Sudarto, welcomed the expansion of the index range.
“We appreciate President Prabowo’s decision to expand the alpha to 0.9. This signals his support. However, the 2026 UMP increase should be at least equal to or higher than last year’s,” he said.
