Updates on Provincial Minimum Wage (UMP) increases always become a major concern for millions of workers in Indonesia. For 2026, the Government, together with the National Wage Council, officially determined the UMP in December 2025.

On a national scale, the average UMP increase for 2026 ranges from 5% to 8%, which is higher than the previous year. This policy comes as a welcome relief amid economic challenges and inflationary pressures throughout 2025.

It’s important to note that the UMP is the lowest wage limit that companies must pay workers at the provincial level, serving as a basic protection of labor rights and welfare.

The 2026 UMP was determined by Government Regulation Number 49 of 2025 on Wages, which mandates that all governors in Indonesia announce the minimum wage for their respective regions.

So, what factors influenced the 2026 UMP determination, and which regions have the highest wages? Find out more below.

Factors Driving the 2026 UMP Increase

In determining the 2026 UMP rates, the government used three main indicators as the basis for calculation:

1. Regional Economic Growth

The provincial economic performance throughout 2025 was a crucial factor. Several regions recorded positive economic growth following the recovery from global pressures. This growth is expected to be felt by workers through higher minimum wages.

2. Inflation Rate

Inflation reflects rising prices for necessities, fuel, and housing. UMP adjustments are necessary to ensure that workers’ purchasing power remains stable and is not eroded by rising prices.

3. Alpha Index

The alpha coefficient represents the labor contribution to economic growth. This value serves as a multiplier that affects the scale of the minimum wage increase in each province.

Thanks to the combination of these three factors, several provinces recorded relatively higher UMP increases, particularly regions supported by downstream industries, such as North Maluku and Central Sulawesi.

Full List of UMP 2026 in Indonesia

By the end of 2025, 37 provinces had announced their 2026 UMP. Aceh is the only province that has yet finalized its rate, as it is still recovering from flash floods that hit several areas.

Sumatra

• North Sumatra: Rp3,228,971
• West Sumatra: Rp3,182,955
• Riau: Rp3,780,495
• Riau Islands: Rp3,879,520
• Jambi: Rp3,471,497
• South Sumatra: Rp3,921,234
• Bengkulu: Rp2,827,250
• Lampung: Rp3,047,734
• Bangka Belitung: Rp4,035,000

Java and Bali

• Jakarta: Rp5,729,876
• Banten: Rp3,100,881
• West Java: Rp2,317,601
• Central Java: Rp2,327,386
• Special Region of Yogyakarta: Rp2,417,495
• East Java: Rp2,446,880
• Bali: Rp3,207,459

Nusa Tenggara

• West Nusa Tenggara: Rp2,673,861
• East Nusa Tenggara: Rp2,455,898

Kalimantan

• West Kalimantan: Rp3,054,552
• Central Kalimantan: Rp3,686,138
• South Kalimantan: Rp3,725,000
• East Kalimantan: Rp3,680,000
• North Kalimantan: Rp3,775,243

Sulawesi

• North Sulawesi: Rp4,002,630
• Central Sulawesi: Rp3,179,565
• South Sulawesi: Rp3,921,234
• Southeast Sulawesi: Rp3,306,496
• Gorontalo: Rp3,405,144
• West Sulawesi: Rp3,315,934

Maluku and Papua

• Maluku: Rp3,334,490
• North Maluku: Rp3,552,840
• Papua: Rp4,436,283
• West Papua: Rp3,841,000
• Central Papua: Rp4,285,848
• South Papua: Rp4,508,850
• Southwest Papua: Rp3,766,000
• Highland Papua: Rp4,508,714

With the 2026 UMP in place, Jakarta recorded the highest increase, reaching Rp333,116 or 6.17 percent compared to the 2025 UMP, followed by South Papua, Highland Papua, Papua, and Central Papua.

While the 2026 UMP increase is certainly good news for workers, it’s also important to look beyond the wage and ensure you are working for a company with a positive work culture and long-term career prospects.

Choose a company with a good reputation and credibility in its field. One such company is PT Serasi Autoraya (SERA), a transportation, logistics, and auction company that is part of the Astra Group.

Since its founding on March 22, 1990, SERA has continued to grow and welcomes the best talent to fill various strategic positions.

Visit SERA’s website at www.sera.astra.co.id and follow its social media on Instagram @serasiautoraya and LinkedIn Serasi Autoraya for information on career tips and the latest job openings.