JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that the formulation of the provincial minimum wage (UMP) for 2026 has considered various economic indicators, ranging from the inflation rate to economic growth in each province and district/city.
"UMP is the minimum wage whose amount has been determined through the inflation formula plus the index, multiplied by the economic growth in each province or district," said Airlangga, quoted by Antara.
Airlangga's statement was made in response to the ongoing protests from workers regarding the increase in UMP in a number of regions.
The government has also increased the amount of the alpha index in the UMP calculation formula to 0.5 to 0.9. This step, according to him, has provided a good wage increase for workers.
Coordinating Minister for Economic Affairs Airlangga also explained that the minimum wage set at this time is already worth being used as a benchmark so that workers can earn an income that is in accordance with their daily living needs while anticipating price increases in the community.
"This is a benchmark so that workers can get wages according to their needs and the increase in prices in the community as a minimum standard," he said.
Furthermore, he said that in certain cities and economic areas, sectoral minimum wages could even be above the UMP set by the local government.
"The government hopes that the business world will encourage productivity-based remuneration. In some special economic zones and industrial areas, the average wage is even above the UMP, especially in the capital-intensive industrial sector," he said.
Meanwhile, on Wednesday (24/12), the Governor of DKI Jakarta Pramono Anung Wibowo officially announced the increase in the DKI Jakarta UMP in 2026 to Rp5,729,876.
Previously, the UMP DKI Jakarta was at Rp5,396,761. Thus, this year's UMP increase reached 6.17 percent or Rp333,115.
Pramono explained that the determination of the UMP was based on Government Regulation (PP) Number 49 of 2025. In this regulation, the alpha index is set in the range of 0.5 to 0.9.
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