Indonesia 2025 Minimum Salary Rate Increased by 6.5%
Recently, Indonesia has announced that the minimum salary rate (UMP) in 38 provinces across the country will be increased by a uniform 6.5% from 2025.The core objective of this adjustment is to accommodate continued socio-economic development and to ease the upward pressure of inflation and cost of living.
The adjustment of the minimum salary rate is based on several key factors:
- Socio-economic development: Integrate the growth and development trends of the country's economy.
- market inflation: To combat inflation and ensure that workers' purchasing power does not decline.
- Rising cost of living: Ensure that salaries cover basic living expenses.
The Government's annual adjustment of the minimum wage rates aims to achieve the following objectives:
- Increasing productivity: Motivate workers and laborers by guaranteeing pay levels.
- Reducing poverty and unemployment: To improve the living standards of low-income people and promote employment.
- Enhancing the purchasing power of society: Enhance the population's ability to consume and boost the domestic demand economy.
- Reducing regional pay gaps: To prevent imbalances in pay levels between different provinces.
Below are the minimum salary rates for 2025 for selected regions (shown in Rupiah and Chinese Yuan):
| province | Indonesian rupiah | RMB (approx.) | province | Indonesian rupiah | RMB (approx.) |
|---|---|---|---|---|---|
| Jakarta Special Zone | 5,396,761 | 2453 | Chambey province of east Thailand | 3,234,533 | 1470 |
| Papuan province of Indonesia in northwest Sumatra | 4,285,847 | 1948 | Kuala Lumpur | 3,221,731 | 1464 |
| South Papua Province | 4,285,847 | 1948 | Maluku prefecture in West Africa (Tw) | 3,141,699 | 1428 |
| Highland Papua Province | 4,285,847 | 1948 | West Sulawesi Province | 3,104,430 | 1411 |
| West Papua Province | 4,285,847 | 1948 | Southeast Sulawesi Province | 3,073,551 | 1397 |
| Central Papua Province | 4,285,848 | 1948 | Bali (island in Indonesia) | 2,996,561 | 1362 |
| Bonga Belitung Province | 3,876,600 | 1762 | West Sumatra Province | 2,994,193 | 1361 |
| North Sulawesi Province | 3,775,425 | 1716 | North Sumatra Province | 2,992,559 | 1359 |
| Aceh province of Indonesia in northwest Sumatra | 3,685,615 | 1675 | Central Sulawesi Province | 2,914,583 | 1325 |
| South Sumatra Province | 3,681,570 | 1673 | Banten province of Cameroon | 2,905,120 | 1321 |
| South Sulawesi Province | 3,657,527 | 1663 | Lampung province of Malaysia | 2,893,069 | 1315 |
| Riau Islands Province | 3,623,653 | 1647 | West Kalimantan Province | 2,878,286 | 1308 |
| West Papua Province | 3,613,545 | 1643 | Bengkulu (Indonesian town on the south coast of Sumatra) | 2,670,039 | 1214 |
| North Kalimantan Province | 3,580,160 | 1627 | West Nusa Tenggara | 2,602,931 | 1183 |
| East Kalimantan Province | 3,579,313 | 1627 | East Nusa Tenggara | 2,328,969 | 1059 |
| Riau Province | 3,508,775 | 1595 | East Java (province) | 2,305,984 | 1048 |
| South Kalimantan Province | 3,496,194 | 1589 | Jogyakarta Special Region, central Java | 2,264,080 | 1029 |
| Central Kalimantan | 3,473,621 | 1579 | West Java Province | 2,191,232 | 996 |
| North Maluku Province | 3,408,000 | 1549 | Central Java | 2,169,348 | 986 |
Note: Renminbi conversion is based on the exchange rate of Rp 1 ≈ Rp 2200.
Through this adjustment of the minimum salary standard, the Indonesian government has demonstrated the importance it attaches to the rights and interests of workers and the pursuit of a balance between economic development and social equity. In the future, Indonesia's labor market will continue to develop in a healthier and more stable direction.
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