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View all search resultsJakarta sets 2026’s minimum wage at Rp 5.7 million
Negotiations between workers, business owners and the city administration led to an agreement to set the alpha coefficient that determines the increase of minimum wage at 0.75, still within the threshold of between 0.5 and 0.9 set by the central government.
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Workers congregate on Dec. 24, 2025, at the pedestrian underpass on Jl. Kendal, Central Jakarta. (Antara/Ika Maryani)
T
he Jakarta administration has announced a decision to set the 2026 provincial minimum wage at Rp 5.73 million (US$341), around 6.17 percent higher compared to the figure for 2025, following negotiations with workers and businesspeople.
At a press briefing at the City Hall on Wednesday, Jakarta Governor Pramono Anung said the number had been agreed upon during multiple meetings of the Jakarta Wage Council, which comprises representatives from laborers, employers and the city administration.
The new minimum wage is effective starting Jan. 1. The 2025 minimum wage for Jakarta was Rp 5.39 million.
“The city administration wants to ensure that the minimum wage increase reflects support for workers, while also considering challenges faced by business owners and the sustainability of the economy that would create new jobs,” Pramono said on Wednesday, as quoted in a statement issued by the city administration.
He added the calculation for the new number was based on Government Regulation (PP) No. 49/2025 on wages. The regulation, signed on Dec. 16 by President Prabowo Subianto, sets a revised formula for minimum wage increases and instructs provincial leaders to determine them by Dec. 24.
The new formula takes into account inflation and economic growth multiplied by a factor known as alpha, which represents an index reflecting labor’s contribution to the growth. The PP stipulates next year’s coefficient to be between 0.5 and 0.9.
