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Indonesia’s Minister of Manpower Targets Minimum Wage Guidelines for 2025 Release in November

by Raidi
2024-11-23
in Economic
A A
Minimum Wage

Ministry of Manpower - Yassierli (Pinterest)

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Jakarta, Indonesia Sentinel — Indonesia’s Minister of Manpower (Kemnaker), Yassierli, aims to finalize new regulations for setting the 2025 minimum wage by the end of November 2024. Yassierli stated that the regulation is currently being evaluated by the Ministry.

“We’re targeting the end of this month to issue the ministerial regulation,” Yassierli state on Saturday, November 23, as reported by Bisnis.

In preparation, the Ministry of Manpower (Kemnaker) has issued a circular to all governors across Indonesia, instructing them to await central government guidance regarding next year’s minimum wage.

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Yassierli previously indicated that a draft of the ministerial regulation (Permenaker) would be completed this week in collaboration with the National Tripartite Cooperation Institution. The draft will be submitted to President Prabowo Subianto upon his return to Indonesia after his state visits for further review and approval.

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“After we receive the President’s directives, we’ll issue the regulation. We’re just waiting for him to return,” Yassierli stated during a meeting at the Ministry of Manpower’s office in Jakarta on Wednesday (Nov. 20, 2024).

Timeline for Implementation

Following the regulation’s issuance, Ministry of Manpower plans to collaborate with the Ministry of Home Affairs (Kemendagri) to conduct outreach to governors nationwide. Yassierli anticipates that the announcement of provincial, municipal, and sectoral minimum wages will occur in December 2024.

“We aim to complete this before January 1. The process will include the gradual determination of provincial minimum wages (UMP), municipal or regency wages (UMK), and sectoral wages,” he added.

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According to Bisnis, the announcement of provincial minimum wages which traditionally made on November 21 each year, has been delayed, as well as the municipal wage announcement which originally scheduled for November 30.

The postponement stems from ongoing evaluations by the Ministry to determine the most appropriate policies for the 2025 minimum wage.

Official Guidance to Governors

Indah Anggoro Putri, Director General of Industrial Relations and Labor Social Security at the Ministry of Manpower, confirmed that the ministry is currently finalizing its policy on minimum wage determination.

In a letter dated November 20, 2024, addressed to all governors, the Ministry urged regional leaders to hold off on announcing minimum wages until receiving directives from the central government.

“We kindly request the attention and cooperation of all governors to wait for further policy guidance from the central government, which will be issued shortly,” Indah stated in the letter, numbered 4/498/HI.00.00/XI/2024.

This comprehensive review and delay underscore the government’s efforts to implement a balanced and equitable minimum wage policy for 2025, ensuring alignment with economic conditions and labor rights.

 

(Raidi/Agung)

Tags: KemnakerlaborMinimum WageYassierli
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