Jakarta — President of Indonesia, Prabowo Subianto, officially announced a 6.5% average increase in the National Minimum Wage for 2025 during a briefing at the Presidential Palace Complex in Jakarta, Friday (29/11).

The announcement came after internal discussions with members of the Merah Putih Cabinet.

“The Minister of Manpower proposed a 6% increase, but after further discussions and consultations with labor leaders, we decided to increase the average national minimum wage for 2025 by 6.5%,” Prabowo stated.

According to Prabowo, the minimum wage serves as a critical social safety net for workers, especially those employed for less than 12 months. The new minimum wage aims to boost workers’ purchasing power while ensuring business competitiveness.

“Ladies and gentlemen, the welfare of workers is of utmost importance. We will continuously strive to improve their well-being,” Prabowo emphasized.

The determination of sectoral minimum wages will be delegated to Provincial, City, and Regency Wage Councils. Further details regarding the minimum wage regulations will be outlined in a Ministerial Regulation by the Ministry of Manpower.

Previously, Prabowo held discussions with the President of the Confederation of Indonesian Trade Unions (KSPI) and President of the Labor Party, Said Iqbal. Said Iqbal stated that the decision on the 2025 minimum wage reflects a balance between worker welfare and business sustainability.

“After meeting with the President today at the Palace, he has decided on a minimum wage policy for 2025 that considers both worker welfare and the continuity of businesses,” Said Iqbal told reporters after the meeting. (RR)