2023 Minimum Provincial Wage (UMP) List for Java Island: DKI Jakarta Highest

Several Indonesian provincial governments announced the Provincial Minimum Wage (UMP) for 2023 on Monday (November 28th). Six provinces on the island of Java have also announced their UMP figures, referencing the Ministry of Manpower Regulation Number 18 of 2022.

Based on official announcements, the UMP varies across provinces. The UMP increase ranges from 5% to 9%, falling within the range stipulated by the Ministerial Regulation, with a maximum increase of 10%.

The following are the 2023 UMP figures for Java:

1. Jakarta

UMP Jakarta 2022: Rp 4,641,854
UMP Jakarta 2023: Rp 4,900,000
UMP Increase: Rp 258,146 (5.6%)

The Jakarta Provincial Government officially increased the 2023 UMP to Rp 4.9 million. This figure represents a 5.6% increase from this year's UMP of Rp 4.6 million. The Head of the Jakarta Manpower, Transmigration, and Energy Agency, Andri Yansah, stated that this increase considered the Wage Council Hearing on Tuesday, November 22nd.

According to Andri, the Jakarta Chamber of Commerce and Industry (Kadin DKI) proposed a 5.11% UMP increase for 2023 (using alpha 0.1), while the Indonesian Employers Association (Apindo DKI) proposed using the formula from Government Regulation (PP) 36 of 2021 concerning Wages.

Meanwhile, the Jakarta Provincial Government, comprised of various elements including experts, academics, practitioners, and the Central Statistics Agency (BPS), conducted studies and surveys, resulting in the 5.6% increase (or alpha 0.2), Andri explained.

2. Banten

UMP Banten 2022: Rp 2,501,203.11
UMP Banten 2023: Rp 2,661,280
UMP Banten Increase: Rp 160,076.89 (6.4%)

The Banten Provincial Government set the 2023 UMP at Rp 2,661,280.11. This represents a 6.4% increase compared to the 2022 UMP. The determination of the 2023 Banten UMP is stipulated in Banten Governor's Decree Number 561/Kep.305-Huk/2022 concerning the Determination of the Banten Provincial Minimum Wage for 2023, effective January 1, 2023.

"Alhamdulillah, it has been determined according to Banten Governor's Decree Number 561/Kep.305-Huk/2022," said Septo Kalnadi, Head of the Banten Provincial Manpower and Transmigration Agency.

3. East Java

UMP East Java 2022: Rp 1,891,567.12
UMP East Java 2023: Rp 2,040,244
UMP East Java Increase: Rp 148,676.88 (7.86%)

The Governor of East Java, Khofifah Indar Parawansa, set the 2023 UMP at Rp 2,040,244.30 (Rp 2.04 million). This wage is 7.8% higher than in 2022.

Khofifah stated in a written statement that the 2023 UMP increase is stipulated in the East Java Governor's Decree Number 188/860/KPTS/013/2022 dated November 21, 2022, concerning the East Java Provincial Minimum Wage for 2023. The decree prohibits employers who already pay wages higher than the 2023 UMP from reducing or lowering the amount.

"We also ensure that paying wages lower than the stipulated 2023 UMP is prohibited," said Khofifah.

4. West Java

UMP West Java 2022: Rp 1,841,487.31
UMP West Java 2023: Rp 1,986,670.17
UMP West Java Increase: Rp 145,182.86 (7.88%)

The West Java Provincial Government set the 2023 UMP at Rp 1,986,670. This is a 7.8% increase compared to the 2022 UMP of Rp 1,841,487.

West Java Secretary General Setiawan Wangsaatmaja stated that the 2023 UMP determination is included in the West Java Governor's Decree Number 561/Kep/752/Kesra concerning the West Java Provincial Minimum Wage for 2023. "This is the best we could achieve regarding the UMP calculation," said Setiawan.

According to Setiawan, West Java Governor Ridwan Kamil reviewed the recommendations from the Wage Council and ensured compliance with applicable regulations. Furthermore, the decree stipulates that the wage amount will be effective and payable on January 1, 2023.

5. Yogyakarta

UMP Yogyakarta 2022: Rp 1,840,915.53
UMP Yogyakarta 2023: Rp 1,981,782
UMP Yogyakarta Increase: Rp 140,866.47 (7.65%)

The Governor of Yogyakarta Special Region, Sri Sultan Hamengku Buwono X, set the 2023 UMP at Rp 1,981,782.39. This is a 7.65% increase from this year's UMP of Rp 1,840,915.53.

"A 7.65% increase, or Rp 140,866.86," said Beny Suharsono, Acting Assistant to the Yogyakarta Regional Secretary for General Government and Administration. Beny stated that the UMP increase was decided by the Yogyakarta Governor, Sultan HB X, based on the recommendations of the Provincial Wage Council, comprising elements of labor unions, employers, the government, and the Central Statistics Agency (BPS), guided by applicable wage regulations.

6. Central Java

UMP Central Java 2022: Rp 1,812,935
UMP Central Java 2023: Rp 1,958,169
UMP Central Java Increase: Rp 145,234 (8.01%)

The 2023 UMP in Central Java increased by 8.01%, or Rp 145,234.26, compared to the previous year. "The 2023 UMP is Rp 1,958,169.69, up from Rp 1,812,935," said Central Java Governor Ganjar Pranowo.

Ganjar explained that the 2023 UMP determination is based on the Indonesian Ministry of Manpower Regulation Number 18 of 2022 concerning the Determination of the Minimum Wage for 2023. "Ministerial Regulation Number 18 of 2022 states that the determination of this UMP considers inflation and economic growth, as well as the alpha value (confidence level)," he said.