Indonesia to Increase National Minimum Wage by 6.5% in 2025: President Prabowo

Jakarta, The Gulf Observer: President Prabowo Subianto announced that the national average minimum wage will be increased by 6.5 percent in 2025, following a limited meeting with relevant parties on Friday. The decision was made to ensure better welfare for workers, especially those employed for less than 12 months, and to support workers’ purchasing power while preserving business competitiveness.

“We have decided to increase the average national minimum wage by 6.5 percent in 2025,” President Prabowo stated at the Presidential Office in Jakarta. The increase exceeds the 6 percent proposed by the Minister of Manpower, Yassierli, signaling the government’s commitment to worker welfare.

The decision was the result of comprehensive discussions, including consultations with labor leaders, to establish the minimum wage as an effective social safety net. The President emphasized the importance of balancing worker welfare with business sustainability.

In addition to the wage increase, President Prabowo highlighted the introduction of the Free Nutritious Meals Program, which aims to provide daily nutritional support to children and pregnant women from worker families. Each recipient of the program will receive Rp10,000 (USD0.61) per day, with families of three children benefiting from Rp30,000 (USD1.83) daily, translating to approximately Rp2.7 million (USD165) per month.

The sectoral minimum wages for specific industries will be determined by the Wage Council at provincial, city, and district levels. Further provisions regarding the implementation of the minimum wage increase will be detailed in a Regulation of the Minister of Manpower, which is expected to be issued by December 4, 2024.

Minister Yassierli confirmed that the regulation, currently being drafted, will provide specific guidelines for the minimum wage adjustment. He also addressed concerns about worker opposition to the wage increase, stating that President Prabowo had carefully considered the workers’ aspirations before finalizing the decision.

This move is part of the government’s ongoing efforts to improve workers’ welfare and contribute to the broader socio-economic stability of the nation.