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INDONESIA: Monthly Minimum Wage Set to Rise by 8.51% from January 2020

An 8.51% increase in the country’s monthly minimum wage is to be implemented as of 1 January 2020. As the minimum wage varies by region, the increase will show a concurrent variance in real terms. Following the announcement, individual provincial governors and city administrators have until 1 November and 21 November this year (respectively) to officially adopt the proposed increase or to specify any local variance.

At present, while workers in Jakarta, the country’s relatively affluent capital, are entitled to a monthly minimum wage of Rupiah 3.94 million (US$277), those in the comparatively undeveloped East Nusa Tenggara region, for example, receive only Rupiah 1.79 million (US$126).

Content provided by Picture: HKTDC Research
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