Jamal Abdun Nashr, Jakarta – Indonesia's Central Java province has set its provincial minimum wage (UMP) for 2026 at Rp2,327,386, or about Rp2.33 million, marking a 7.28 percent increase from the 2025 level.

The decision is stipulated in Governor's Decree No. 100.3.3.1/504, issued on December 24, 2025. The wage adjustment follows Indonesia's Government Regulation No. 49 of 2025, which amends Government Regulation No. 36 of 2021 on wages.

The 2026 UMP calculation takes into account a provincial inflation rate of 2.65 percent, economic growth of 5.15 percent, and an alpha coefficient of 0.90.

Central Java Governor Ahmad Luthfi said the alpha figure was determined through a structured calculation process.

"The alpha value of 0.90 was set based on clear calculations and established parameters," he said.

The same governor's decree also establishes the Provincial Sectoral Minimum Wage (UMSP) for 2026, which applies to 11 industrial sectors. These include wheat flour processing, sugar production, footwear manufacturing, cosmetics, and pharmaceutical products for human use.

The new wage provisions will take effect on January 1, 2026. Luthfi urged companies to comply with the regulation, saying adherence would support sustainable business growth in the province.

In addition, the decree sets the District and City Minimum Wages (UMK) across Central Java. Semarang recorded the highest UMK at Rp3,701,709, or about Rp3.7 million, while Banjarnegara Regency posted the lowest at Rp2,327,813, or approximately Rp2.33 million.

Source: https://en.tempo.co/read/2075927/indonesias-central-java-sets-2026-minimum-wage-at-rp2-33-millio