Jakarta Minimum Wage Proposal 2026 Nearly Hits Rp 6 Million

The Provincial Minimum Wage (UMP) of DKI Jakarta is proposed to increase by 10.5%. If this proposal is approved, the UMP of DKI Jakarta will almost reach Rp 5.9 million, marking a significant rise from the current minimum wage.

The figure was suggested by KSPI President Said Iqbal in response to rising inflation and higher economic needs, as well as an effort to adjust people’s purchasing power to the increasing cost of living. Local governments across Indonesia are currently conducting simulations and discussions to ensure the policy can be implemented effectively and fairly for both workers and employers.

However, despite the intention to improve worker welfare, some employers are concerned that such a high increase may place a heavier burden on them. They also hope that the determination of the UMP will take into account the resilience of business sectors, especially amid global economic uncertainty