inp.polri.go.id - Jakarta. Minister of Manpower Yassierli stated that the government is pushing for the minimum wage to be closer to the Living Needs (KHL).
The Minister believes that the minimum wage (UM) policy directly impacts the purchasing power of workers and their families, from basic necessities to transportation and housing costs.
"We view the KHL as a very important benchmark. If the minimum wage of a certain region is already close to the KHL, the increase will certainly not be the same as in regions where the minimum wage is still far from the KHL," the Minister stated on Thursday (1/22/2026).
Furthermore, Minister Yassierli explained that through Government Regulation Number 49 of 2025, the wage increase policy will no longer be uniform across regions, but rather the amount of the increase will be adjusted to the economic conditions of each region and the position of wages relative to the KHL.
"So, regions with a large gap between wages and the KHL can encourage higher wage increases than regions where wages are already close to the KHL," the Minister said.
In addition, Yassierli also presented the results of the 2026 Provincial Minimum Wage (UMP) determination and its comparison with the estimated KHL (Kawasaki Minimum Wage). This comparison still shows disparities between regions, with some provinces approaching closer to the KHL, while others remain below the KHL standard.
To make wage recommendations more appropriate to field conditions, the Minister of Manpower stated that the government continues to strengthen the capacity of Regional Wage Councils and Regional Tripartite Cooperation Institutions (LKS) so that wage discussions in the regions are based on studies and real-world conditions.
Regarding the preparation of the KHL, he also stated that the process is conducted through studies involving a team of experts and using official data, including the National Socioeconomic Survey (Susenas). Currently, the KHL working paper is only available at the provincial level.
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