According to data from the Central Statistics Agency (BPS), in 2004, the Provincial Minimum Wage (UMP) for Jakarta was Rp671,600.
The figure then steadily increased in subsequent years, reaching Rp5.06 million in 2024.
Cumulatively, the Jakarta UMP has grown by 654% or increased by approximately Rp4.4 million during the 2004-2024 period.
Broken down by year, the highest increase in Jakarta's UMP over the last two decades was recorded in 2013, when Jakarta was governed by Governor Jokowi.
At that time, the Jakarta UMP increased by 43.87% from Rp1.5 million (2012) to Rp2.2 million (2013).
The lowest increase was recorded during the Covid-19 pandemic, when Jakarta was led by Governor Anies Baswedan.
The increase was only 3.27%, from Rp4.2 million (2020) to Rp4.4 million (2021).
The 2024 Jakarta UMP increased by 3.38% compared to 2023, the second lowest increase in the last 20 years.
Government Regulation (PP) Number 51 of 2023 states that the minimum wage applies to workers with less than one year of service.
For workers with more than one year of service, wages are based on the company's established wage structure and scale.
Previously, based on the Manpower Law Number 13 of 2003, every employer was prohibited from paying employees less than the minimum wage.
However, this provision was amended through the Job Creation Perppu Number 2 of 2022 (Chapter IV Employment Article 90B) which reads: "The minimum wage provisions as referred to in Article 88C paragraph (1) and paragraph (2) are exempted for micro and small businesses".
Therefore, business entities categorized as "micro" and "small" are no longer obligated to comply with the minimum wage regulations.
Based on PP Number 7 of 2021, the criteria for "micro businesses" are those with a maximum capital of Rp1 billion (excluding land and buildings used for the business), or annual sales of a maximum of Rp2 billion.
The criteria for "small businesses" are those with capital >Rp1 billion up to Rp5 billion (excluding land and buildings used for the business), or annual sales >Rp2 billion up to Rp15 billion.