Current State of Minimum Wage
As of 2024, Indonesia’s minimum wage is set on a regional basis, meaning it varies across different provinces and districts. Each region calculates its minimum wage based on the cost of living, economic conditions, and the needs of the workforce. This decentralised approach allows for flexibility, catering to the diverse economic conditions across Indonesia’s vast archipelago.
Based on the PP. No 36 Year 2021
Wages shall be workers’/labourers’ rights received and expressed in cash as compensation from the employer to workers/labourers, set and paid according to an employment agreement, agreement, or laws and regulations, including allowances for Workers/Labourers and their families for a job and/or service that has been or will be performed.
Minimum Wage Updates for 2026
In 2026, several regions in Indonesia have announced adjustments to their minimum wage rates. This includes:
Indonesia’s Minimum Wages for 2026 by region:
| Province | Monthly Minimum Wage Rate (Rupiah) |
| North Sumatra | 3,228,949 |
| West Sumatra | 3,182,955 |
| Riau | 3,780,495 |
| Riau Islands | 3,879,520 |
| Jambi | 3,471,497 |
| South Sumatra | 3,942,963 |
| Bangka Belitung | 4,035,000 |
| Bengkulu | 2,827,250 |
| Lampung | 3,047,734 |
| Banten | 3,100,811 |
| DKI Jakarta | 5,729,876 |
| West Java | 2,317,601 |
| Central Java | 2,327,386.07 |
| Special Region of Yogyakarta | 2,417,495 |
| East Java | 2,446,880 |
| Bali | 3,207,459 |
| West Nusa Tenggara | 2,673,861 |
| East Nusa Tenggara | 2,455,898 |
| West Kalimantan | 3,054,552 |
| South Kalimantan | 3,725,000 |
| Central Kalimantan | 3,686,138 |
| East Kalimantan | 3,762,431 |
| North Kalimantan | 3,775,243 |
| Maluku | 3,334,490 |
| North Maluku | 3,510,240 |
| Gorontalo | 3,405,144 |
| North Sulawesi | 4,002,639 |
| Southeast Sulawesi | 3,306,496.18 |
| Central Sulawesi | 3,179,565 |
| South Sulawesi | 3,921,088 |
| West Sulawesi | 3,315,934 |
| Papua | 4,436,283 |
| West Papua | 3,841,000 |
These adjustments are part of the government’s broader effort to ensure that wages keep pace with inflation and provide a decent standard of living for workers.
Salary Negotiations and Collective Bargaining
In Indonesia, wage negotiations often occur at the company level, especially in sectors not covered by sectoral minimum wages. Employers and employees, or their unions, negotiate salaries that may exceed the regional minimum wage, depending on the profitability and economic conditions of the business.
Collective bargaining plays a significant role in determining wages in sectors like factory workers, where unions are actively involved in protecting workers’ rights and ensuring fair pay.
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Indonesia’s minimum wage system for 2024 reflects the country’s commitment to balancing economic competitiveness with fair compensation for workers. By understanding the nuances of regional and sector-specific minimum wages, employers can ensure compliance, while workers are assured of receiving wages that support a decent standard of living.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Indonesia employment laws and regulations, please visit the official governmental websites.
Updated on: March 2026
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