Jakarta Officially Raises 2026 Minimum Wage to Rp 5.7 Million

The DKI Jakarta Provincial Government has officially set a 6.17% increase in the 2026 Provincial Minimum Wage (UMP). As a result, the minimum wage has risen to Rp 5,729,876 per month, up from approximately Rp 5.39 million in 2025.

This decision was made following discussions by the Wage Council, which involved representatives from the government, employers, and workers, and was based on the latest wage regulations. The new UMP will take effect on January 1, 2026, and must be implemented by all companies operating in DKI Jakarta.

DKI Jakarta Governor Pramono Anung explained that the UMP increase was calculated by considering inflation and economic growth, using an alpha value of 0.75, with the aim of maintaining a balance between protecting workers’ purchasing power and ensuring business sustainability.

The government hopes this policy will improve workers’ welfare without placing excessive pressure on employers, although differences in perspective remain between labor unions and business actors regarding what constitutes an ideal increase.