JAKARTA - Minister of Home Affairs Tito Karnavian asked the governors of Indonesia to set the minimum wage for 2026 by no later than December 24, 2025.
Tito asked the local government to immediately follow up on the process seriously and in a coordinated manner because there was only about seven days left.
"The determination of the entire minimum wage in 2026, which was just, especially this governor as the central point, no later than December 24," said Tito as quoted by ANTARA, Wednesday, December 17.
This was conveyed by the Minister of Home Affairs during the socialization of the Minimum Wage Determination Policy for 2026 which was held online from the Main Meeting Room of the Central Office of the Ministry of Home Affairs (Kemendagri), Jakarta.
Tito emphasized that the governor plays a central role in determining the minimum wage in 2026, both the Provincial Minimum Wage (UMP), the Provincial Sectoral Minimum Wage (UMSP), the District/City Minimum Wage (UMK), and the District/City Sectoral Minimum Wage (UMSK).
In addition to being obliged to determine the UMP and UMSP 2026, the governor can also determine the UMK and UMSK.
"The governor can set a minimum wage for districts/cities and a sectoral minimum wage for districts (or cities), but 'can'," he said.
The Minister of Home Affairs explained that the minimum wage calculation was carried out by the Wage Council. In its mechanism, the Wage Council determines the index value or alpha which is in the range of 0.5 to 0.9 as one of the variables for determining wages.
"The alpha value (that) is determined by the Wage Council. So, the alpha value will be 0.5 to 0.9," he said.
He emphasized that the determination of the minimum wage must prioritize the principle of balance, namely protecting the welfare of workers while considering the sustainability of the business world.
For this reason, tripartite communication between the government, labor unions, and employers is the key so that the decisions made can be accepted by all parties.
The Minister of Home Affairs also asked regional devices, especially the Manpower Service, to immediately coordinate with regional heads and the Wage Council in each region.
This step is important to ensure that the process of determining the minimum wage runs orderly and does not cause uproar in the community.
Finally, the Minister of Home Affairs emphasized that the Ministry of Home Affairs would monitor the progress of minimum wage determination in all provinces.
"We will monitor the progress of these 38 provinces. Which is completed well, which is approximately not yet," he said.
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