December 18, 2025 | 05:58 pm
TEMPO.CO, Jakarta - Jakarta Governor Pramono Anung Wibowo has confirmed that the Jakarta Provincial Minimum Wage (UMP) will increase in 2026, with the adjustment calculated according to the central government's latest wage formula.
This standardized approach follows the newly established national directive: inflation + (economic growth x alpha). For the upcoming year, the central government has set the alpha coefficient range between 0.5 and 0.9.
The specific alpha value within this range will be determined at the local level, with the final calculation dictating the percentage of the UMP increase for each province. Governor Pramono noted that Jakarta will strictly adhere to this formula in its deliberations.
"Since the figures now have a range, this provides a path toward a resolution between employers and labor unions," he stated in a written address on Wednesday, December 17, 2025.
While the Governor has yet to finalize the exact alpha coefficient for Jakarta, he guaranteed a wage hike, citing the city's current inflation rates and positive economic growth. Both metrics serve as upward drivers within the mandated formula.
Pramono pledged to finalize Jakarta's 2026 UMP well ahead of the Ministry of Home Affairs' December 24 deadline. "Inshallah, Jakarta will conclude the process earlier than that; we will move faster," the Indonesian Democratic Party of Struggle (PDI-P) politician remarked.
To ensure a swift resolution, Pramono has instructed his administration to convene immediate coordination meetings to reach a consensus on the calculation details. "The Jakarta Provincial Government will act as a fair arbiter for both workers and business owners. I have requested an immediate meeting. We must not be late; we aim to be ahead of schedule in our determination," he added.
This regional movement follows an announcement from Minister of Manpower Yassierli, who confirmed that President Prabowo Subianto officially signed the 2026 Wage Regulation (PP) on Tuesday, December 16, 2025. Yassierli maintained that the new formulation was designed after carefully weighing the aspirations of various stakeholders, specifically labor unions, to ensure a balanced economic outcome.
Alfitria Nefi Pratiwi contributed to the report
Read: Why Indonesia's Labor Party Rejects the 2026 Minimum Wage Formula
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