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Knowing the Minimum Wage in Indonesia (2023 Update)

Knowing the Minimum Wage in Indonesia (2023 Update)

The government has set the average increase for minimum wage in Indonesia for 2023. Interestingly, you will undoubtedly find different figures or numbers in each province across this country. 

Read this article for a complete list of them and the average increase they have had. Expand your insight by learning about daily and hourly wages as well. 

People Also Read: Tax In Indonesia: Things You Probably Don’t Know

The Average Increase for 2023

minimum wage

Photo by CNN

Following the announcement by the Indonesian Ministry of Manpower, the minimum wage in Indonesia has experienced an average increase of 7.5 percent in 2023. Even under the Regulation of the Minister of Manpower No. 18/2022, the provincial minimum wage (UMP) for 2023 has been set by a maximum of 10%.

There is a fixed formula that led to the above increase, namely regional economic growth and the regional inflation rate, not to mention a particular index. The index usually describes the labor contribution to economic growth.

For the Indonesian government, calculating the minimum wage serves as an act to balance the increase demanded by social policy and the requirement to make Indonesia attractive for labor-intensive manufacturing.

Minimum Wage in Indonesia (Monthly/Province)

The above ministry regulation also set the provincial minimum wage (UMP) in 34 provinces across Indonesia. 

According to Kompas, DKI Jakarta still holds the highest 2023 UMP, namely IDR 4,901,798, experiencing an increase of 5.6 percent. At the same time, Central Java has the lowest UMP of IDR 1,958,169, despite an increase of 8.01% from the previous year.

Furthermore, ASEANBriefing provides the complete list of monthly minimum wage in Indonesia in each province for 2023. The data is on a rupiah basis, where US$1 is IDR 15,731.

Province 

IDR (Rp)

USD ($)

Increase (%)

DKI Jakarta

4,901,798

316

5.6

Banten

2,661,280

171

6.4

West Java

1,986,670

128

7.8

Special Region of Yogyakarta

1,981,782

128

7.65

Central Java

1, 958,169

126

8.01

East Java

2,040,244

131

7.8

Bali 

2,713,672

175

7.81

North Sumatra

2,710,493

175

7.45

Aceh

3,413,666

220

7.8

Riau

3,191,662

206

8.61

West Sumatra

2,742,476

177

9.15

Riau Islands

3,279,194

211

7.51

South Sumatra

3,404,177

220

8.26

Jambi

2,943,033

190

9.04

Bengkulu

2,418,280

156

8.1

Bangka Belitung

3,498,479

226

7.15

Lampung

2,633,284

170

7.9

North Kalimantan

3,251,702

210

7.79

East Kalimantan

3,201,396

206

6.2

Central Kalimantan

2,599,456

167

8.84

South Kalimantan

3,149,977

203

8.3

West Kalimantan

2,608,601

168

7.16

East Nusa Tenggara

2,123,994

137

7.54

West Nusa Tenggara

2,371,407

153

7.44

North Maluku

2,976,720

192

4

Maluku 

2,812,827

181

7.39

North Sulawesi 

3,485,000

225

5.24

Gorontalo 

2,989,350

193

6.74

Southeast Sulawesi

2,758,595

178

7.10

South Sulawesi

3,385,145

218

6.9

Central Sulawesi

2,599,456

168

8.73

West Sulawesi 

2,608,601

168

7.20

West Papua

3,282,000

212

8.5

Papua 

3,864,696

249

8.5


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From the above data, we can see that West Sumatra has experienced the highest UMP increase for 2023, namely 9.15%. Whereas North Maluku has the lowest UMP increase by 4%.

Hourly and Daily Wages

minimum wage

Photo by ASEAN Briefing

The above monthly minimum wage in Indonesia has a normal working week of forty (40) hours. It is usually further divided into two, namely

  • eight (8) hours per day for five (5) working days
  • seven (7) hours per day for six working days

What about hourly and daily wages? 

Hourly wages are commonly set aside for part-timers (part-time workers) only. As for Indonesia, part-timers are now qualified for hourly wages.

How to determine or calculate the hourly wage? Here is the formula.

Hourly wage = monthly wage/126

As for daily wages, there are two formulas to obtain the final salary.

  • Daily wage for five working days per week

Daily wage = monthly wage/21

  • The daily wage for six working days per week

Daily wage = monthly wage/25

Agreement between employer and employees is allowable, still the final wage must not be lower than the calculation using the above formulas. The employer should pay in Rupiah and report the agreed-upon total wage to the Ministry of Manpower. 

Indeed, the provision of a regional minimum wage has been one of the efforts carried out by the government to protect workers. The purpose is to urge companies or employers to pay the employees decent monthly wages or salaries. 

People Also Read: All About Buying Property In Bali As Foreigners

The payment of minimum wage in Indonesia can use different methods, such as cash, bank transfer, e-wallet, and more. For free and easier inter-bank money transfers, both domestically and internationally, use Flip Globe. This application ensures a fast and safer transaction.  

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