The Indonesian government, through the Minister of Manpower, has set an 8.71 percent increase in the 2018 Provincial Minimum Wage (UMP). This means the 2018 UMP is 8.71 percent higher than the 2017 UMP. This increase is larger than the 2017 UMP increase, which was only 8.25 percent from the 2016 UMP.
Several regional heads have announced the 2018 UMP increase in accordance with Government Regulation Number 78 of 2015 concerning Wages. Based on this regulation, the 2018 UMP is calculated based on national inflation and economic growth data, amounting to 8.71 percent. This figure is derived from an inflation rate of 3.72 percent and economic growth of 4.99 percent.
Of the seven provinces that have announced their 2018 UMP, Jakarta has the highest at Rp 3.65 million per month, up from Rp 3.35 million per month. This is followed by Bali with an UMP of Rp 2.13 million and Banten at Rp 2.1 million per month. Meanwhile, the lowest 2018 UMP is in Yogyakarta Special Region (DI Yogyakarta) at Rp 1.45 million per month.
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