Inp.polri.go.id - Jakarta. President Prabowo Subianto has signed a new government regulation on minimum wage increases, a move appreciated as a concrete step to strengthen workers’ welfare while maintaining economic balance nationwide.

“The wage regulation was signed by President Prabowo Subianto on Tuesday,” Minister of Manpower  Yassierli said in an official statement on Wednesday (17/12/2025), as quoted by antaranews.com.

The regulation introduces a new wage increase formula based on inflation plus economic growth multiplied by an alpha factor ranging from 0.5 to 0.9, replacing the previous alpha range of 0.1 to 0.3 under Government Regulation No. 51/2023. Governors are required to determine provincial minimum wages no later than December 24, 2025, and may set district or city minimum wages and sectoral wages.

The policy was also meant to implement Constitutional Court Decision No. 168/2023, which mandates the formulation of a new labor law with active worker participation.

(mg/inp/pr/rs)