Indonesia Increases Minimum Wage for 2022

ASEAN Briefing

December 14, 2021  

by Ayman Falak Medina

 

Indonesia has increased the average minimum wage of each province by 1.09 percent for 2022. The figure was obtained through the new guidelines on minimum wage under Government Regulation 36 of 2021 (GR 36/2021) — one of the implementing regulations of Indonesia’s Omnibus Law.

Under GR 36/2021, the minimum wage is based on the economic and employment conditions, which are:

• Purchasing power parity;
• Manpower absorption levels; and
• Median wage variables (the margin between the 50 percent of the highest wages and 50 percent from the lowest 50 percent of the lowest wages from employees in the same position).

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What are the new rates for 2022?

The following rates represent the minimum wage of each province in Indonesia. The rates in cities or districts are normally higher than the provincial minimum wage.

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