Indonesia’s 2021 Minimum Wage: No Increases for Most Provinces

 ASEAN Briefing, Dec. 8, 2020

Indonesia’s Ministry of Manpower issued circular No. M/11/HK.04/X/2020 in late October 2020, which advised that due to the economic impact of the pandemic, regional governments should keep monthly minimum wage rates the same as 2020.

Of Indonesia’s 34 provinces, only five have decided to increase the minimum wage for 2021. The minimum wage in Indonesia is mandated through Government Regulation 78 of 2015 (GR 78/2015), which provides a formula for regional governments to calculate the percentage increase of the minimum wage. The formula is as follows:

National Inflation + National Economic Growth = Percentage Increase of Minimum Wage

The five provinces that have increased their minimum wage rate for 2021 are:

• Special Capital Region of Jakarta;
• South Sulawesi;
• Central Java;
• Special Region of Yogyakarta; and
• East Java.

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In full: https://www.aseanbriefing.com/news/indonesias-2021-minimum-wage-no-increases-for-most-provinces/

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