Indonesia considers minimum wage hike in 2023

The Manpower Ministry is still finalising details on workers’ minimum wage in 2023, which will be announced at the end of November this year.
By: | November 2, 2022
Topics: Compensation and Benefits | Employee Experience | Indonesia | News

This was according to Manpower Minister Ida Fauziyah, who said that she has asked the Director General for Industrial Relations and Labour Inspection to listen to the aspirations of the workers.

When asked about the possibility of a wage increase, Ida claimed there would be a hike of a few percent. Previously, workers had demanded a 13% increase in wages in 2023 due to inflation and economic growth.

Meanwhile, the National Wage Council (Depenas) Deputy Chairman Adi Mahfudz Wuhadji said inflation would certainly be a consideration for the 2023 minimum wage. 

“So, the increase is actually a consequence of inflation or economic growth. That’s what we need to know. When we talk about regulation, we set it, so it’s not an increase. If it’s increased, it’s because of inflation or economic growth,” he said. 

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In 2021, the 2022 minimum wage is stipulated in Government Regulation No. 36/2022, with an increase of 1.09% from the previous year, reported Tempo. From January 1, 2022, the monthly minimum wage in Indonesia was increased from IDR4,416,186 (US$282.8) to IDR4,641,854 (US$297.2).