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View all search resultsWage-rule delays jolt businesses, rattle investment plans: Apindo
Businesses have urged the government to stick to the formula set out under Government Regulation No. 51/2023, which ties wage adjustments to regional economic growth, inflation and an index capturing local productivity and business capacity.
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Hundreds of workers hold a rally demanding better working conditions and wages in front of the offices of Central Java Regional Representative Council (DPRD) and governor in Semarang, Central Java, on Aug. 28, 2025. (JP/Suherdjoko)
T
he prolonged delay in issuing a new minimum wage formula is unsettling employers and disrupting their budgeting plans for next year.
According to the Indonesian Employers Association (Apindo), the holdup is creating uncertainty at a time when firms are closing their books and planning capital spending, warning that last-minute changes could further erode manufacturing competitiveness.
“We hope there are no more formula changes at the end of the year, because it throws companies into disarray,” Apindo labor affairs chief Bob Azam told a media briefing on Tuesday.
Like the government’s state budget drafting process, which takes time, companies typically draw up their annual work and budget plans around September. Thus, Bob said this year’s delay was “extremely late”.
Read also: Govt, some unions want to narrow regional wage disparities
The government missed its own Nov. 21 legal deadline to publish the minimum wage formula for next year, which must be followed by district-level wage announcements by Nov. 30. Manpower Minister Yassierli said on Thursday that the government was still finalizing a new regulation outlining how provincial minimum wages should be calculated.
In October, Yassierli stated that the formula used as a guideline for minimum wage levels, to be outlined in the upcoming ministerial regulation, could differ from the one used this year, as the government seeks to reduce disparities in minimum pay among districts and cities.
