Indonesia's average provincial minimum wage (UMP) has steadily increased each year.
According to data from the Central Statistics Agency (BPS), in 2004 the national average UMP was still Rp458,500 per month.
This value gradually increased, and according to data from the Ministry of Manpower (Kemnaker), the national average UMP in 2024 reached Rp3.11 million.
The difference shows that the national average UMP in 2024 has increased by approximately Rp2.65 million, or grown by 579% compared to 2004.
During the 2004-2024 period, the annual UMP growth rate varied, ranging from a low of 0.57% to a high of 22%.
The highest increase was recorded in 2014, when the national average UMP increased by 22% compared to the previous year (year-on-year/yoy).
The lowest increase was recorded in 2021, when the average UMP only increased by 0.57% (yoy), coinciding with the global economic slowdown caused by the Covid-19 pandemic.
President Prabowo Subianto has now announced a 6.5% increase in the average minimum wage for 2025.
"We have decided to increase the national average minimum wage in 2025 by 6.5 percent," Prabowo said, as reported by Antara on Friday (29/11/2024).
"The sectoral minimum wage will be determined by the Provincial, City, and Regency Wage Councils," he continued.