Official 2026 UMP: Jakarta at IDR 5.7 Million, Highest Nationally

The government, through the Ministry of Manpower, has officially set the 2026 Provincial Minimum Wage (UMP) for Indonesia's 38 provinces. DKI Jakarta is once again the province with the highest UMP nationally at IDR 5,729,876, up 6.17 percent from the previous year.

The decision follows the latest regulation, Government Regulation No. 49 of 2025 on Wages. Manpower Minister Yassierli stressed the new formula is designed to be fairer: “This new formula is expected to create a fairer and more sustainable wage policy, not only protecting workers but also maintaining a sound business climate.”

The New UMP Calculation Formula

The 2026 UMP is calculated with the formula: UMP 2026 = UMP 2025 + (UMP 2025 × Alpha Index). The alpha index is set by each governor within a range of 0.5 to 0.9 based on regional economic conditions.

Factors considered include inflation, regional economic growth, and the Decent Living Needs (KHL) standard. DKI Jakarta, for instance, used an alpha index of 0.75 set by Governor Pramono Anung.

Highest and Lowest UMP by Province

The five provinces with the highest 2026 UMP are DKI Jakarta (IDR 5,729,876), Papua Pegunungan (IDR 4,508,714), Papua Selatan (IDR 4,508,100), Papua (IDR 4,436,283), and Bangka Belitung Islands (IDR 4,035,000). North Sulawesi (IDR 4,002,630) and South Sumatra (IDR 3,942,963) follow below.

Conversely, the five lowest UMPs are dominated by Java: West Java (IDR 2,317,601), Central Java (IDR 2,327,386), Yogyakarta (IDR 2,417,495), East Java (IDR 2,446,880), and East Nusa Tenggara (IDR 2,455,898). The gap between the highest and lowest UMP reaches IDR 3,412,275 — nearly 2.5 times — reflecting cost-of-living disparities across regions.

Other notable facts: Central Sulawesi recorded the highest percentage increase nationally at 9.08 percent, while Central Papua was the only province whose UMP did not rise at all (0 percent).

Highest Regency/City Wage: Bekasi Nears IDR 6 Million

At the regency/city level, the highest minimum wage nationally is held by Bekasi City at IDR 5,999,443 — nearly IDR 6 million and even above DKI Jakarta's UMP. Next come Bekasi Regency (IDR 5,938,885), Karawang Regency (IDR 5,886,853), Depok City (IDR 5,522,662), and Cilegon City (IDR 5,469,923).

The dominance of industrial areas in West Java and Banten is natural, given the thousands of factories and high living costs there. At the other end, the lowest regency/city wage was recorded in Banjarnegara Regency, Central Java, at IDR 2,320,000.

Impact on Workers and Employers

With this decision, all companies must adjust their wage structures and are prohibited from paying below the set UMP/UMK. For workers, the minimum wage serves as a safety net to keep earnings decent.

For employers, the policy is expected to maintain a conducive investment climate. The nominal differences between regions reflect differing local economic conditions and capacities — workers in industrial zones like Bekasi, Karawang, or Cikarang should use their local UMK as the reference, which can far exceed the provincial UMP.