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View all search resultsLabor unions have argued in a series of protests against the Jakarta administration that this year’s city minimum wage of Rp 5.73 million (US$341) is still lower than the Rp 5.89 million of income recommended by Statistics Indonesia (BPS) for decent living in the city.
Laborers have voiced their dissatisfaction with the higher minimum wage for Jakarta next year, which stands at Rp 5.73 million (US$341), saying that the increase still falls short of meeting living standards amid rising cost of living in the capital.
The provincial capital's minimum wage has been increased 7.38 percent to around Rp 5.36 million for 2026, while the greatest hike was around 9 percent for Bintan regency, where workers can expect a minimum wage of nearly Rp 4.6 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.
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.
National and regional wage councils are set to play a central role in shaping the formula used to determine minimum wages for next year, unlike last year, when the President himself decided how much wages should rise.
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