Minister Of Manpower: Center Prepares Range For UMP Increase, Regions Determine Final Figures

Minister of Manpower (Menaker) Yassierli after a limited meeting with President Prabowo Subianto at the Presidential Palace Complex, Jakarta, Thursday (11/27/2025). (ANTARA/Fathur Rochman)

JAKARTA - Minister of Manpower (Menaker) Yassierli stated that the central government has prepared a range (range) for the 2026 Provincial Minimum Wage (UMP) increase which will serve as a national guideline, but the final decision remains in the hands of the local government.

According to him, the 2026 UMP determination scheme is no longer one point like last year. This concept is in accordance with the decision of the Constitutional Court Number 168 of 2023 as a whole, which takes into account the needs of decent living, to economic growth in wage determination.

"We provide guidance in the form ofrange, later the regional governments will determine themselves according to the conditions of economic growth in each region, inflation, then the necessities of life like him are far from the wages now," Yassierli said after a limited meeting with President Prabowo Subianto at the Presidential Palace complex, Jakarta, Thursday, November 27 reported by ANTARA.

Yassierli explained that the one national figure approach that had been used so far was unable to overcome the disparity of economic conditions between regions, therefore the new format in the form of an increase range was more in accordance with the mandate of the Constitutional Court.

However, the details of the amount of the UMP increase range are still being formulated internally by the government. The new formula will also be regulated through a revision of government regulations (PP) which will soon be announced.

"Just wait. We will revise the PP, later after that it will be okay, we will announce it later," said Yassierli.

He also emphasized that the Regional Wage Council will play a more active role in proposing the amount of wage increases in accordance with the characteristics of each region.

"According to the mandate of the Constitutional Court, every Regional Wage Council is authorized to propose the amount of the increase in wages to the Governor," he said.

The government is targeting the announcement of the 2026 UMP amount to be carried out before December 31, 2025 so that it can be set starting January 2026.