Description
In December 2025, the Indonesian government announced a minimum wage increase for most provinces, effective in January 2026.
However, Jakarta’s new minimum wage of Rp 5.73 million (US$340.21) remains below the official living cost benchmark of Rp 5.89 million, revealing a significant gap between wages and the real cost of living.
This disparity is even more concerning considering that Jakarta’s wage is now lower than that of nearby cities, raising serious questions about the fairness of the policy.
While the government defends the new wage formula as a balance between worker welfare and business stability, the gap has sparked protests and concerns over its impact.
Given these factors, is this wage increase truly enough to meet the needs of workers in Indonesia's urban centers?
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