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
Vietnam
Like Indonesia, Vietnam uses a regional system, though it is centrally regulated through government decrees.
Vietnam’s approach offers greater uniformity and predictability, while Indonesia’s local autonomy leads to wider wage variation.
Explore Vietnam’s minimum wage→
Thailand
Thailand uses a daily wage model, offering more flexibility for short-term or seasonal work.
Indonesia’s monthly wage structure provides steadier income and aligns more closely with formal employment systems.
Learn more about Thailand’s minimum wage→
Philippines
Both Indonesia and the Philippines base wages on regional conditions, but the Philippines experiences sharper differences between urban and rural areas.
Indonesia’s system, despite similar gaps, is more formally tied to economic indicators such as GDP and inflation.
Learn more about the minimum wage in the Philippines→
Malaysia
Malaysia applies a single national minimum wage, unlike Indonesia’s provincial structure.
Indonesia’s regional system allows lower-cost provinces to attract investment, while Malaysia’s fixed rate reflects higher national living standards.
Comparison summary
Indonesia’s decentralised model sits between Vietnam’s regulated tiers and Malaysia’s uniform national rate.
It provides flexibility but introduces inconsistency across regions, forcing businesses to navigate complex wage landscapes while remaining cost-competitive within ASEAN.
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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