Indonesia’s minimum wage system is set annually and varies by province, reflecting regional economic differences and cost-of-living disparities.
While it provides a useful reference point for businesses planning labour costs, the minimum wage does not always align with actual market rates, especially in industrial hubs like Jakarta or West Java.
Typically expressed as a monthly amount, the wage can be converted to daily or hourly figures for operational planning, though these conversions are informal and not legally defined.
For foreign firms, understanding Indonesia’s minimum wage framework is essential to navigating local compliance, workforce expectations, and budgeting accurately across provinces.
What is the minimum wage in Indonesia?
As of 2025, Indonesia’s minimum wage system is regionally determined, reflecting the diverse economic conditions across its provinces
Region-based minimum wage rates in Indonesia
| Monthly | Daily | |||
| Province | IDR | US$ | IDR | US$ |
| DKI Jakarta | 5,396,760 | 331.88 | 206,905 | 12.72 |
| Papua | 4,285,848 | 263.56 | 164,314 | 10.10 |
| Bangka Belitung | 3,876,600 | 238.39 | 148,624 | 9.14 |
| North Sulawesi | 3,775,425 | 232.17 | 144,745 | 8.90 |
| Aceh | 3,685,615 | 226.65 | 141,302 | 8.69 |
| South Sumatra | 3,681,570 | 226.40 | 141,146 | 8.68 |
| South Sulawesi | 3,657,527 | 224.92 | 140,225 | 8.62 |
| Riau Islands | 3,623,653 | 222.84 | 138,926 | 8.54 |
| North Kalimantan | 3,580,160 | 220.16 | 137,259 | 8.44 |
| East Kalimantan | 3,579,313 | 220.11 | 137,226 | 8.44 |
| Riau | 3,508,775 | 215.77 | 134,522 | 8.27 |
| South Kalimantan | 3,496,194 | 215.00 | 134,039 | 8.24 |
| Central Kalimantan | 3,473,621 | 213.61 | 133,174 | 8.19 |
| North Maluku | 3,408,000 | 209.58 | 130,658 | 8.03 |
| Jambi | 3,234,533 | 198.91 | 124,008 | 7.63 |
| Gorontalo | 3,221,731 | 198.12 | 123,517 | 7.60 |
| West Papua | 3,200,000 | 196.79 | 122,684 | 7.54 |
| Maluku | 3,141,699 | 193.20 | 120,449 | 7.41 |
| West Sulawesi | 3,104,430 | 190.91 | 119,020 | 7.32 |
| Southeast Sulawesi | 3,073,551 | 189.01 | 117,836 | 7.25 |
| Bali | 2,996,560 | 184.28 | 114,884 | 7.06 |
| West Sumatra | 2,994,113 | 184.13 | 114,790 | 7.06 |
| North Sumatra | 2,992,559 | 184.03 | 114,731 | 7.06 |
| Central Sulawesi | 2,914,583 | 179.23 | 111,741 | 6.87 |
| Banten | 2,905,119 | 178.65 | 111,378 | 6.85 |
| Lampung | 2,893,069 | 177.91 | 110,916 | 6.82 |
| West Kalimantan | 2,878,286 | 177.00 | 110,350 | 6.79 |
| Bengkulu | 2,670,039 | 164.20 | 102,366 | 6.30 |
| West Nusa Tenggara | 2,602,931 | 160.07 | 99,793 | 6.14 |
| East Nusa Tenggara | 2,328,969 | 143.22 | 89,290 | 5.49 |
| East Java | 2,305,984 | 141.81 | 88,408 | 5.44 |
| Yogyakarta | 2,264,080 | 139.23 | 86,802 | 5.34 |
| West Java | 2,191,232 | 134.75 | 84,009 | 5.17 |
| Central Java | 2,169,348 | 133.41 | 83,170 | 5.11 |
Source: INFOGRAFIS: Upah Minimum Provinsi 2025
How does Indonesia compare regionally?
As of 2025, Indonesia’s minimum wage sits in the mid-range among Southeast Asian countries.
While Indonesia’s headline rates look competitive, foreign firms should account for regional variations—provinces like Central Java offer wages as low as US$135—and for infrastructure and productivity differences that can affect real labour cost effectiveness.
Monthly minimum wage, Southeast Asia, 2025
| Country | Region | Local Currency | US$ | |
| Indonesia | Jakarta | IDR | 5,067,381 | 325 |
| Philippines | Metro Manila^ | PHP | 16,824 | 303.84 |
| Malaysia | National | MYR | 1,500 | 322.20 |
| Thailand* | Bangkok | THB | 7,986 | 227.82 |
| Vietnam | Hanoi/HCMC | VND | 4,960,000 | 195 |
*Calculated using daily rate times 313 / 12.
^Non-agricultural workers
How does Indonesia compare to Vietnam?
Indonesia sets minimum wages provincially, with Jakarta offering around US$337 per month, while lower-cost areas fall closer to US$135.
Vietnam uses a centrally coordinated, region-based system, with top-tier wages at US$195 and rural areas closer to US$136.
While Vietnam offers more uniform and predictable labour costs, Indonesia provides greater flexibility—but also wider disparities across regions.
Learn more about Vietnam’s minimum wage→
How does Indonesia compare to the Philippines?
Indonesia and the Philippines both use region-based minimum wage systems, but the Philippines sets daily rates through 17 regional wage boards, while Indonesia sets monthly rates at the provincial level.
In 2025, Metro Manila’s minimum wage equates to about US$304/month, slightly below Jakarta’s US$337/month, though both countries have lower wages in rural areas.
The Philippines faces more pressure from inflation and fragmented enforcement, while Indonesia’s system allows for broader flexibility and clearer annual adjustments.
Read more about the minimum wage in the Philippines→
How does Indonesia compare to Thailand?
Thailand and Indonesia both set minimum wages regionally, but Thailand uses daily wage rates while Indonesia sets monthly rates.
As of 2025, Bangkok’s minimum wage is roughly US$228/month, which is lower than Jakarta’s US$337/month, though Thailand offers relatively more wage consistency across provinces.
Indonesia’s model allows for greater regional variation and higher rates in economic hubs, while Thailand’s system is more centrally guided with less disparity.
Explore Thailand’s minimum wage→
What’s next?
Indonesia’s minimum wage system offers a structured yet regionally varied framework that reflects local economic conditions and cost-of-living differences.
While it serves as a baseline for labour cost planning, actual wages—particularly in industrial centres—often exceed statutory rates.
For foreign firms, a clear understanding of these provincial wage structures is critical to ensuring compliance, managing workforce expectations, and accurately budgeting for operations across the country.
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