13 April, 2013
The Governor of DKI Jakarta has set the increase of the regional minimum wage at 8.71%.
This percentage figure is in line with the Minister of Manpower’s circular letter issued on 13 October 2017, which states that the regional minimum wage calculation should take into account the national inflation rate and economic growth rate published by the Indonesian Central Agency on Statistics (Badan Pusat Statistik) (currently 3.72% and 4.99%, respectively).
Employers in Jakarta must ensure that by 1 January 2018 their employee’s wage will not be less than IDR3,648,035. Up to the date of this publication, the Governor has not determined a sectoral minimum wage, but we anticipate that this may be available by early 2018.
For further information, please contact:
Widyawan, Senior Partner, Widyawan & Partners
widyawan@linklaters.com
