Indonesia 2025 Minimum Salary Rate Increased by 6.5%

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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.

# Policy Information