Knowing What the Provincial Wage Council Is So That Labor Rights Are Still Protected

Illustration of what is a provincial wage council (antaranews)

YOGYAKARTA - Are you a worker? Did you know that there is a Provincial Wage Council (Depeprov) in determining the wage standard? This institution has a crucial role in balancing the economic interests between employers and labor unions.

The decisions produced by this tripartite institution will greatly affect the purchasing power of the wider community. Let's dissect more deeply about their structure, duties, and working mechanisms in setting wage policies.

Dilansir VOI dari laman Wikipedia dan Kementerian Sekretariat Negara RI, berikut ini beberapa hal mengenai Depeprov yang perlu dipahami para pekerja:

What is the Provincial Wage Council?

The Provincial Wage Council or Depeprov is a non-structural institution (LNS) at the provincial level that is tripartite.

Based on Presidential Decree Number 107 of 2004, this institution was formed by the Governor as a follow-up to the mandate of Article 98 of Law Number 13 of 2003 concerning Employment.

The main focus of the Depeprov is to provide advice and consideration to the government in formulating regional wage policies.

Who are the members of the Wage Council?

The membership structure of the Depeprov is designed to be fair and representative. The membership consists of five main elements:

GovernmentBusiness OrganizationsTrade Unions or Trade Unions Universities Experts

The comparison of the composition between the Government, Employers, and Workers is 2:1:1. Meanwhile, the number of members of the University and Expert elements is adjusted to the needs of each region, with a total of 100 members.

Members of the Depeprov are appointed and dismissed by the Governor upon the proposal of the Head of the Regional Apparatus Organization Unit which deals with employment.

Then the term of office of members of the Depeprov is 3 years for one period and can be reappointed for a maximum of one term of office.

Main Tasks and Functions of the Depeprov

Based on the regulation, the Depeprov has a big responsibility, including:

Provide advice and consideration to the Governor in the determination of the Provincial Minimum Wage (UMP), the District/City Minimum Wage (UMK), and the Sectoral Minimum Wage (UMS). Prepare materials for the formulation of the national wage system. Provide input regarding the implementation of the wage system at the provincial level.

Read also the article discussing the Amount of Wages to be Determined by the Regional Wage Council

Minimum Wage Determination Process

In its work system, each element (Government, Labor, Employers, and Experts) prepares materials to be discussed in the plenary meeting. The results of this discussion are then expressed in the form of the main thoughts of the Depeprov.

Then there is one very crucial thing, namely in the process of formulation, where members are required to pay attention to the Adequate Living Needs (KHL) figure as well as other economic data such as inflation and economic growth.

The presence of the Depeprov ensures that the wage policy is not taken unilaterally. With the involvement of experts and academics, it is hoped that the wage recommendations given to the Governor will be objective.

This balance is important to maintain the stability of the investment climate for entrepreneurs while ensuring the welfare and purchasing power of workers.

Wage Reality: Highest and Lowest UMP 2025

In fact, DKI Jakarta again recorded the position as the province with the highest UMP in Indonesia in 2025, reaching Rp5,396,761. This amount reflects the high cost of living and the dynamics of the economic wheel in the capital.

On the other hand, Central Java is still the province with the lowest UMP value nationally in 2025, namely IDR 2,169,349. This figure is adjusted to the conditions of regional economic growth and the average local household consumption. So is it fair?

Thus, the Provincial Wage Council is a communication bridge between workers, employers, and the government. Through a transparent and data-based mechanism, this institution ensures that the minimum wage set each year is able to support sustainable regional economic growth.