President Prabowo Announces 6.5% Increase in National Minimum Wage for 2025

Author: Dian Kencana
November 29, 2024

President Prabowo Subianto announces a 6.5 percent increase in the 2025 national minimum wage at the Presidential Office, Presidential Palace Complex, Jakarta, Friday (29/11/2024). (ANTARA/Andi Firdaus)

SEAToday.com, Jakarta - President Prabowo Subianto announced a 6.5 percent increase in the average national minimum wage for 2025. This decision was made during a limited meeting with relevant parties that took place on Friday (11/29) afternoon at the Presidential Palace Complex, Jakarta.

“We decided to raise the average national minimum wage in 2025 by 6.5 percent,” the President said. This figure is slightly higher than the recommendation of Minister of Manpower Yassierli, who previously proposed an increase of 6 percent. The limited meeting discussed minimum wage as a measure to protect workers, especially those who have been working for less than 12 months.

President Prabowo explained that this decision was taken after thorough discussions, including with labor union leaders. This policy aims to increase workers' purchasing power while maintaining the competitiveness of the business world.

For sectoral minimum wages, the determination will be left to the Wage Boards at the provincial, city, and district levels. Furthermore, provisions regarding the setting of this minimum wage will be regulated through a Minister of Manpower Regulation.