Press Statement of President of the Republic of Indonesia with Regard to the Announcement of the Increase in the National Minimum Wage in 2025, at the Presidential Office, Jakarta, November 29, 2024

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh,

Good afternoon,

Shalom,

Om Swastiastu,

Namo Buddhaya.

Ladies and Gentlemen,

We have just held a Limited Meeting to discuss several issues, but the main one is the 2025 minimum wage.

As we know, this minimum wage serves as a very important social safety net for workers who have worked for less than 12 months, taking into account the need for a decent living. For that reason, the determination of the minimum wage aims to increase workers’ purchasing power, while still paying attention to our business competitiveness.

The Minister of Manpower had proposed an increase in the national minimum wage by 6 percent. However, after holding discussions and meetings with labor leaders, we decided to increase the average national minimum wage in 2025 by 6.5 percent. The sectoral minimum wages will be determined by the Provincial, City, and Regency Wage Councils. More detailed provisions regarding the minimum wage will be regulated by a Regulation of the Minister of Manpower.

Ladies and Gentlemen,

Workers’ welfare is of particular importance, and we will always continue to fight for improving their welfare. And, earlier in front of the leaders of labor representatives, I also said that our programs, including nutritious food for children and pregnant women, also serve as additional welfare for workers, because workers certainly have families and children.

If we go into detail, for the implementation of this nutritious [food] program, we will allocate approximately Rp10,000 per day per child and per pregnant woman. Previously, we wanted to allocate Rp15,000 but our budget can perhaps allow Rp10,000 and we have calculated that in many areas, such a sum allows quite qualified and nutritious food per person. If we estimate that a family in the lower deciles has 3-4 children on average, that means each family can receive a minimum of Rp30,000 per day. In one month, they can receive Rp2.7 million.

So, with all of these programs, including the social assistance program, other social protection programs such as the Family Hope Program, and other assistance programs, I think the Government’s efforts to secure all levels of society, including labor groups, have been maximal so far. Of course we want to improve the efforts in the future.

That concludes my statement. And if there is more detailed information later, we will convey it. We do not open a question-and-answer session this time. That’s all I can tell you. I thank you.

Good afternoon.

(TM/MUR)