Indonesia’s national minimum wage will increase by 6.5% in 2025, President Prabowo Subianto announced during a press conference on November 28. The adjustment, initially proposed at 6% by Manpower Minister Yassierli, was revised after consultations with labour leaders.
The increase aims to balance improved purchasing power for workers with maintaining business competitiveness, Prabowo said. “Welfare of workers is of utmost importance. We will continue to fight for their welfare improvement,” the president shared on Facebook.
Minimum wages in various sectors will also be determined by provincial and district wage councils, adding a layer of regional oversight to the policy.
According to The Business Times, the announcement follows a Constitutional Court decision requiring changes to the 2020 Job Creation Law, which spurred discussions on wage adjustments.
Iqbal, president of the Indonesian Trade Union, noted that the average provincial minimum wage for 2024 is 3.1 million rupiah. He said workers are generally accepting of the new increase for 2025.
The Ministry of Manpower is drafting regulations to formalize the implementation of the wage increase. The rules, expected by December 4, will clarify specifics of the adjustment.
In related updates, the government has revised the budget for its free meal program for children and pregnant women, reducing the estimated cost per serving from 15,000 rupiah to 10,000 rupiah, according to The Edge Malaysia.
The changes to wage policy and social programs come as Indonesia seeks to address economic challenges while improving living standards for its workforce.