Prabowo Wage Increase Formula: Alfa Segini Surprise Nights
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Indonesia Announces New Wage Regulations for 2026
Table of Contents
Overview of the New Wage Regulations
President Prabowo Subianto has officially issued new regulations for setting minimum wages in Indonesia. The Government Regulation (PP) on Wages was signed on Tuesday, December 16, 2025.
Minister of Manpower Yassierli announced the signing, stating that the PP was the result of extensive study and analysis, incorporating input from various stakeholders, especially trade unions.
“Thank God, the PP on Wages has been signed by President Prabowo Subianto today, Tuesday, December 16, 2025,” said Yassierli.
The New Wage Increase Formula
The core of the new regulation lies in the wage increase formula. The formula is Inflation + (Economic Growth x Alpha),where Alpha ranges from 0.5 to 0.9. This allows for a degree of versatility based on economic conditions.
Yassierli explained, “Mr President decided on a wage increase formula of Inflation + (Economic Growth x Alpha) with a range Alfa 0,5 – 0,9.”
Implementation Process
The implementation of the new regulations will follow a tiered process:
- Regional Wage Councils: These councils will calculate the minimum wage for their respective regions using the new formula.
- Governor Recommendation: The Regional Wage Councils will submit their calculations as recommendations to the Governor of each province.
- governor Determination: Governors are legally obligated to determine the provincial Minimum Wage (UMP) and District/City Minimum Wage (UMK),as well as Provincial Sectoral Minimum Wages (UMSP) and District/City Sectoral Minimum Wages (UMSK).
- Deadline: Governors must determine the amount of the wage increase no later than December 24, 2025.
editor’s Analysis
Timeline
| Date | Event |
|---|---|
| December 16, 2025 | PP on Wages signed by President Prabowo Subianto. |
| December 24, 2025 | Deadline for Governors to determine wage increases. |
| 2026 | New minimum wages take effect. |
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