Indonesia has officially updated its minimum wage regulations for 2025, with all provinces and regions adjusting their rates to reflect rising living costs and economic growth. The government, under President Prabowo Subianto, has announced a national average increase of 6.5%, reinforcing its commitment to fair labor practices and improved living standards across the archipelago.

This comprehensive update includes both Provincial Minimum Wages (UMP) and Regency/City Minimum Wages (UMK), along with Sectoral Minimum Wages (UMSK) for select industries in specific regions like Bali.

What Are UMP, UMK, and UMSK?

1. UMP (Upah Minimum Provinsi): The provincial minimum wage, set annually by each of Indonesia’s 34 provinces.
2. UMK (Upah Minimum Kabupaten/Kota): The regency or city-level minimum wage, which must not fall below the provincial UMP.
3. UMSK (Upah Minimum Sektoral Kabupaten/Kota): A sector-specific wage applied to certain industries in select regions, like hospitality in Badung, Bali.

These wages are calculated based on inflation, regional economic performance, and productivity. According to Indonesia’s Labor Law (Law No. 13/2003, Article 77), minimum wages apply to:

1. 7 hours/day for 6 working days per week, or
2. 8 hours/day for 5 working days per week

UMP 2025: Provincial Minimum Wages Across Indonesia

The following are the official 2025 UMPs for select provinces:

Jakarta offers the highest provincial minimum wage, while Central Java and Yogyakarta remain on the lower end of the spectrum. These differences reflect regional economic conditions and cost-of-living factors.

UMK Bali 2025: Minimum Wages by City and Regency

Bali’s 2025 UMP is Rp 2,996,560, representing a 6.5% increase from the previous year. Each regency and city in Bali has also set its UMK, none of which fall below the provincial minimum:

These rates take into account regional economic conditions and Bali’s heavy reliance on tourism and services.

UMSK Bali 2025: Sectoral Minimum Wage in Badung

In Badung, a Sectoral Minimum Wage (UMSK) has been introduced for the accommodation and food service industries, particularly targeting five-star hotels:

This targeted wage policy ensures fair pay for workers in Bali’s key hospitality sector, aligning labor compensation with the island’s economic priorities.

What This Means for Employers and Workers

1. Employers must update payroll systems and ensure full compliance with the new wage standards by January 1, 2025. Non-compliance could result in legal penalties.
2. Workers should verify the official UMP or UMK for their specific province or regency to ensure they receive appropriate wages.

This wage adjustment is part of the Indonesian government's broader strategy to address regional income disparities, promote fair labor practices, and sustain competitiveness in local markets.

Final Thoughts

The 2025 minimum wage update is more than just an economic policy—it’s a nationwide effort to enhance the well-being of workers while supporting sustainable business practices. With rising costs and evolving labor dynamics, both employers and employees must stay informed and proactive.

For the full list of UMP and UMK rates across Indonesia and detailed breakdowns by province and sector, refer to the official announcement by the Indonesian Ministry of Manpower and respective provincial governments.