President Prabowo Announced 6.5% Increase in 2025 National Minimum Wage

TheIndonesia.co - President Prabowo Subianto said that the average national minimum wage will be increased by 6.5 percent in 2025, based on the results of a limited meeting with related parties on Friday.

"We have decided to increase the average national minimum wage in 2025 by 6.5 percent," he said at the Presidential Office in Jakarta, as quoted by Antara.

According to Prabowo, the increase is slightly higher than the 6 percent increase proposed by Minister of Manpower, Yassierli.

The decision was taken after a limited meeting held to discuss the minimum wage as a social safety net for workers, especially those who have worked for less than 12 months, he informed.

The head of state added that the final decision was taken after in-depth discussions, including with labor leaders.

He said the decision aims to increase workers' purchasing power while maintaining business competitiveness.

"Workers' welfare is important. We will continue to fight to improve their welfare," he assured.

During a meeting with association leaders and labor representatives, the President said that the Free Nutritious Meals Program for children and pregnant women is also an additional welfare initiative for workers.

The average budget for the program for each recipient is Rp10 thousand (USD0,61) per day. For example, workers with three children will receive assistance worth Rp30 thousand (USD1,83) per day, or around Rp2.7 million (USD165) per month.

Meanwhile, the sectoral minimum wages will be determined by the Wage Council at the provincial, city, and district levels, he disclosed.

Prabowo added that further provisions regarding the determination of the minimum wage will be regulated through the Regulation of the Minister of Manpower.

Meanwhile, Yassierli said the regulation will be issued no later than December 4, 2024.

The regulation, which is currently being drafted, will contain further specifications regarding the implementation of the minimum wage increase, he explained.

He also dismissed any issue regarding workers' rejection of the increase. According to him, Prabowo considered the aspirations conveyed by workers before making the decision.