The Jakarta provincial government has set the 2026 Provincial Minimum Wage (UMP) at Rp5,729,876, a 6.17% increase. Labor unions, however, reject the decision and plan to file a lawsuit at the State Administrative Court (PTUN) while organizing protests. Governor Pramono Anung promised additional incentives for workers and businesses.
On Wednesday, December 24, 2025, Jakarta Governor Pramono Anung announced the 2026 Provincial Minimum Wage (UMP) at the Jakarta City Hall. The minimum wage amount rises by Rp333,115 from the previous year's Rp5,396,761, reaching Rp5,729,876. This determination follows Government Regulation Number 49 of 2025 on Wages and takes effect from January 1, 2026.
"It has been agreed that the increase in the Provincial Minimum Wage for DKI Jakarta or UMP for 2026 is Rp 5,729,876; the previous UMP was Rp 5,396,761, so the increase is 6.17% or Rp 333,115," Pramono told reporters.
Additionally, the DKI Provincial Government provides incentives for workers, including public transportation, food assistance, free health checks, access to clean drinking water, and other social protection programs. For entrepreneurs, there are eased licensing, tax relaxations, and access to training and capital for small and medium enterprises (UMKM).
However, the Indonesian Confederation of Labor Unions (KSPI) and the Labor Party reject the increase. KSPI President Said Iqbal stated that the UMP should be based on the Cost of Living (KHL), not the 0.75 index that results in Rp5.73 million, which he claims falls short by Rp160,000 from the labor alliance's demand. He also highlighted that DKI's UMP is lower than the Rp5.95 million in Bekasi and Karawang Regencies.
"KSPI and the Labor Party, together with the DKI Jakarta workers' union alliance, reject the UMP increase using the 0.75 index," Said said during an online press conference on Thursday, December 25, 2025. They plan to sue at the State Administrative Court (PTUN) as it is a state administrative decision, and hold actions at the Presidential Palace and City Hall in Jakarta.
This policy reflects the dynamics between workers' and entrepreneurs' interests amid national economic conditions.
