2025 UMR in All Provinces of Indonesia: Percentage Increase

In Indonesia, the minimum wage standard is known as UMR or Upah Minimum Regional (UMR). The UMR not only reflects the standard cost of living in a region but also affects worker welfare and business sustainability in that area.

The UMR amount varies across different regions in Indonesia, depending on factors such as regional productivity, economic growth, inflation, and people's purchasing power. So, what is the 2025 UMR in each province of Indonesia? Let’s explore the full details in the article below.

Is the 2025 UMR Increasing?

In 2025, the government announced a 6.5% increase in the UMR compared to 2024. Interestingly, this figure is slightly higher than the initial 6% proposal from the Minister of Manpower.

The Minister of Manpower, Yassierli, stated that this increase applies to all regions across Indonesia, including both provinces and cities/regencies. He also emphasized that workers should report any companies violating this regulation.

The regulation regarding the 2025 UMR adjustment is outlined in the Minister of Manpower Regulation (Permenaker) Number 16 of 2024. This policy came into effect on December 4, 2024, following in-depth discussions during a limited cabinet meeting.

2025 UMR List by Province

It’s worth noting that the term UMR has now been officially replaced by UMP (Provincial Minimum Wage) and UMK (Regency/City Minimum Wage). Although the terminology has changed, the function remains the same: as a minimum wage benchmark that employers must comply with. Below is the complete list of 2025 UMP in all provinces in Indonesia:

Source: JobStreet

Based on the table above, it can be concluded that DKI Jakarta still holds the highest minimum wage in Indonesia at Rp5,396,760. The second and third positions are held by Papua and North Kalimantan, respectively.

On the other hand, the province with the lowest minimum wage in 2025 is Central Java, with a UMR of Rp2,169,348.

2025 UMR in Jabodetabek Area

Several regions in Indonesia, including the Greater Jakarta area (Jabodetabek: Jakarta, Bogor, Depok, Tangerang, and Bekasi), have also implemented the minimum wage adjustments mandated by the government starting in December 2024. Here's the detailed breakdown of the 2025 UMR for Jabodetabek:

Source: Kompas

Factors That Affect UMR Amount

When setting minimum wage policies, the government takes several key factors into consideration. Let’s take a closer look at what these factors are:

Decent Living Needs (KHL) Analysis

One of the primary determinants of a region’s UMR is the analysis of Kebutuhan Hidup Layak (Decent Living Needs or KHL).

This includes a detailed calculation of how much money a worker and their family need to live decently in a particular region.

The analysis covers primary, secondary, and tertiary needs—ranging from housing and healthcare to education and food costs.

Regional Productivity and Economic Growth

In the context of UMP, productivity refers to how efficiently workers in a region produce goods and services. Meanwhile, economic growth reflects how fast the local economy is developing.

Higher productivity and positive economic growth generally allow businesses and governments to afford higher wages for workers.

Labor Market Conditions

Labor market conditions refer to the balance between job seekers and job vacancies.

If there are more job openings than applicants, companies often offer higher wages to attract and retain talent.

Conversely, if there are fewer openings than job seekers, employers may offer lower wages and be more selective in hiring.

Inflation and Public Purchasing Power

Inflation—or the general increase in prices—also plays a critical role in determining minimum wage levels.

As inflation rises, the cost of basic needs increases, leading to reduced purchasing power.

Therefore, it’s essential to adjust the UMR in line with inflation to ensure that workers can still meet their basic needs.

That concludes our explanation of the 2025 UMR across all provinces in Indonesia. With the increase in UMR, you can better plan your financial strategy and business development.

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