All governors across Indonesia are required to announce the increase in the 2026 Provincial Minimum Wage (UMP) today, Wednesday (December 24). This obligation was conveyed by Minister of Manpower Yassierli following the enactment of the Government Regulation (PP) on Wages for 2026.

Yassierli stated that specifically for 2026, governors must determine the wage increase no later than December 24, 2025. He explained that the calculation of the minimum wage increase is carried out by the Regional Wage Council, with the results submitted to the governor as a recommendation for determination. This provision is stipulated in the Wage Regulation signed by President Prabowo Subianto on Tuesday (December 16).

Under the regulation, governors are required to set the UMP and may also establish the Regency/City Minimum Wage (UMK). In addition, governors must determine the Provincial Sectoral Minimum Wage (UMSP) and may set the Regency/City Sectoral Minimum Wage (UMSK).

Yassierli noted that the 2026 Wage Regulation was formulated through extensive studies and discussions. The government adopted a new formula for next year’s wage determination, namely inflation plus economic growth multiplied by an alpha value ranging from 0.5 to 0.9, after considering input and aspirations from various stakeholders, particularly labor unions.

He emphasized that the policy serves as a follow-up to Constitutional Court Decision Number 168/2023 and reflects the President’s commitment to implementing the ruling. By comparison, the 2025 UMP determination still referred to Minister of Manpower Regulation Number 16 of 2024, which set the wage increase at 6.5 percent.

To date, several provinces have already announced their 2026 UMP figures, including North Sumatra at Rp3,228,971, reflecting a 7.9 percent increase; South Sumatra at Rp3,942,963, up 7.10 percent; and Central Kalimantan at Rp3,686,138, an increase of 6.12 percent, along with the establishment of the UMSP.

Meanwhile, North Sulawesi set its UMP at Rp4,002,630, an increase of Rp227,205; South Sulawesi at Rp3,921,088, up 7.21 percent; and West Nusa Tenggara at Rp2,673,861, rising 2.7 percent. West Sumatra established its UMP at Rp3,182,955, an increase of 6.3 percent, along with a UMSP of Rp3,214,846, while Gorontalo set its UMP at Rp3,405,144, marking a 5.7 percent increase.