Manpower Minister Yassierli said the formula for Indonesia’s 2027 provincial minimum wages will refer to the new employment law. A proposed increase of 7–9% submitted by labor unions is one input to the discussion, not a final figure set by the government.

Bisnis.com reported on October 22, 2026 that governors determine provincial minimum wages with input from regional wage councils. The discussions also consider decent living needs. Because processes and economic conditions differ by region, a single national number should not be treated as applying to every province.

How can workers and businesses prepare?

Workers can wait for official local decisions and distinguish demands, proposed formulas, and final announcements. Companies, especially small businesses, should monitor official notices and update cost planning after rules are set, rather than treating a proposal as a current requirement.

Wage changes should be considered alongside inflation, productivity, living costs, and local business conditions. This article does not forecast the 2027 minimum wage for any province. Refer to governors’ announcements and official regulations when issued.

Source: Bisnis.com, October 22, 2026.