Alfitria Nefi Pratiwi, Jakarta – Indonesia's Minister of Manpower, Yassierli, announced that President Prabowo Subianto has approved the formula for calculating the provincial minimum wage (UMP) for 2026, formalized in the latest government regulation.

"Alhamdulillah (Thank God), the Wage Regulation PP has been signed by President Prabowo Subianto today, Tuesday, December 16, 2025," Yassierli said in a written statement.

Yassierli explained that the determination of the UMP 2026 formula took into account the aspirations of various parties, particularly labor unions.

After reviewing these inputs, President Prabowo approved a wage increase formula based on inflation plus economic growth multiplied by an alpha factor, with the alpha index set between 0.5 and 0.9.

The minister emphasized that the formula reflects the government's commitment to implementing Constitutional Court Decision Number 168 of 2023.

Under the regulation, the Regional Wage Council will calculate the recommended minimum wage increase and submit it to the governor for approval.

The Wage Regulation PP also stipulates the governor's responsibility to determine the provincial minimum wage, the regency/city minimum wage, the provincial sectoral minimum wage, and the regency/city sectoral minimum wage.

Yassierli urged governors to finalize the wage increases by December 24, 2025, and expressed hope that the wage regulation formula would serve as an effective and fair policy for all parties.

However, the All-Indonesian Workers Union Association (Aspirasi) criticized the formula, arguing that it does not adequately guarantee a decent standard of living (KHL).

"The Constitutional Court clearly states that the minimum wage must reflect the principles of KHL, justice, and humanity. We are disappointed with this decision," said Aspirasi President Mirah Sumirat.

Source: https://en.tempo.co/read/2074100/prabowo-approves-indonesias-2026-provincial-minimum-wage-formul