Jakarta increases provincial minimum wage for 2022

The provincial minimum wage of Jakarta has been raised by 5.1% to IDR4.6 million for 2022, according to Jakarta Governor Anies Baswedan.
By: | December 21, 2021
Topics: Compensation and Benefits | Health and Wellness | Indonesia | News

In a written statement, Anies said the increase is appropriate for workers and affordable by businesses, and the decision to increase the minimum wage honours the principle of justice for workers, businesses, and the Jakarta government.

Anies raised the Jakarta provincial minimum wage for 2022 by IDR225,667 (US$15.7) or 5.1%, from IDR4,416,186 to IDR4,641,854.

The previously set increase was only IDR37,749 (US$2.6), prompting strong protests from workers. Anies later issued letter No. 533/-085.15 on Suggestion for the Review of Provincial Minimum Wage Determination Formula for 2022, which was addressed to Ministry of Manpower Ida Fauziyah.

Anies said the increase of Jakarta’s provincial minimum wage in the past six years averaged 8.6%. “This (the 5.1% increase) is a form of appreciation for workers and also the spirit for the economy and business world,” he said.

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The decision to increase the provincial minimum wage by 5.1% was based on studies conducted by Bank Indonesia, which projected that the growth rate of the Indonesian economy will be between 4.7% and 5.5% next year, with inflation remaining under control at 3%, according to Tempo.