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YOGYAKARTA - The Indonesian economy grew 5.7 percent in the third quarter of 2022.

This is because the calculation formula for the 2023 Provincial Minimum Wage (UMP) refers to economic growth data as stated by the Minister of Manpower Ida Fauziyah. Then how do you calculate the increase in the 2023 UMP?

This economic growth is even a positive illustration of the level of increase in pay in 2023.

"Basically it can be observed that the minimum pay in 2023 will be relatively higher than the minimum pay in 2022 with data on economic growth and inflation," said Ida at the Commission IX Joint Working Meeting of the DPR RI, Tuesday, November 8.

Ida explained that the calculation of the rate of increase in pay for 2023 applied the formula contained in PP 36 of 2021, as the innate of the Job Creation Law.

"The minimum wage is calculated based on the formula contained in PP 36/2021, which contains variables for economic growth and inflation, so we see this indicator in 2022 which will increase quite significantly compared to 2021," said Ida Fauziah.

Citing data released by BPS, spatially, the Indonesian economy in the third quarter of 2022 has increased in all provinces, where the provincial category on the island of Java is the main contributor with a contribution of 56.30 percent and economic growth of 5.76 percent (yoy).

"Then the submission of data (from BPS) for the calculation of minimum pay and minimum payment for districts from the Ministry of Manpower, we convey to all governors in Indonesia," he concluded.

Examples for Referral to the 2022 UMP

As a reference material, here is a complete list of provincial minimum wages or UMP 2022 that should be known:

So after knowing the calculations of the 2023 ump increase, watch other interesting news on VOI, it's time to revolutionize news!


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