2027 minimum wage: the Manpower Ministry's line has shifted — on 6 October a director general said the current regulation still applies, on 21 October the minister said the formula will refer to the new Labor Protection Law

The question we reported on 21 September — whether the 2027 minimum wage would follow the Labor Protection Bill — now has had two different answers from the Manpower Ministry. On 6 October, after DPR passed the law, Indah Anggoro Putri, the Manpower Ministry's Director General for Industrial Relations and Social Security, said that next year the minimum wage still uses the current government regulation ("Tahun depan kan masih pakai PP yang sekarang") and that the new wage rules are expected to be used first for the 2028 minimum wage, because the law takes effect one year after it is enacted and promulgated. Under the rules in force today, the adjustment is inflation plus economic growth multiplied by an index of 0.50–0.90 (PP 49/2025), provincial minimum wages must be announced by 21 November and district/city minimum wages by 25 November, and all take effect on 1 January. On 21 October, Manpower Minister Yassierli said at the Presidential Palace that the 2027 formula 'refers to the new law', that discussion starts in the national tripartite forum (LKS Tripnas) and then goes to the National Wage Council, that the decent-living-needs (KHL) calculation the law requires will be worked out, and that governors set the rate with their regional wage councils; the reports do not say how this fits with PP 49/2025 or with the law taking effect one year after it is enacted. The formula question is therefore open again for 2027, and the timing question is open too, because last year the formula regulation itself only arrived on 17 December and moved the 2026 deadline to 24 December. The unions' 7.5–9.5% proposal is still a proposal, and we have found no official 2027 rate.

Key points

• 18 September, at the Statistics Indonesia (BPS) office in Central Jakarta, Minister Yassierli: "We haven't discussed that yet. Right now we are focused on the Labor Protection Bill." On the formula: it "will depend on what is written in the Labor Protection Bill," and "we'll see in the law how far the formula is regulated, then we base it on that." On timing: "We don't know yet."
• The formula in force today — PP 49/2025, the second amendment to PP 36/2021 on wages, established and promulgated on 17 December 2025: minimum-wage adjustment = {inflation + (economic growth × α)} × the current minimum wage, with α set between 0.50 and 0.90. The previous rule, PP 51/2023, used a range of 0.10–0.30.
• Statutory deadlines under the current rules: provincial minimum wage (UMP) set by governor's decree and announced by 21 November (PP 51/2023, Article 29); district/city minimum wage (UMK) by 25 November (PP 49/2025, amending Article 35); a provincial sectoral minimum wage within five days after the UMP. All take effect on 1 January. Some media have cited 1 November and 10 November for 2027; we could not find those dates in the regulations.
• Precedent: for 2026, PP 49/2025 arrived on 17 December 2025 and, by a transitional provision, moved the deadline for all 2026 provincial, district/city and sectoral minimum wages to 24 December 2025 — a week before they took effect. The regular November deadlines were overridden.
• Sectoral minimum wages are back: PP 49/2025 re-established provincial and district/city sectoral minimum wages, set on the recommendation of the wage councils for specific sectors.
• What the draft bill says, as reported: minimum wages, sectoral minimum wages and wage scales set by a formula tied to economic conditions. The formula itself in the draft has not been published in a form we could verify.
• Union positions, not forecasts: KSPI president Said Iqbal proposed on 17 September that 2027 minimum wages rise by 7.5% to 9.5%, citing average inflation of 3.20% and growth of 5.43% (October 2025–August 2026) with α at the top of the range; the KSPSI-led coalition is separately demanding a stronger wage council in the bill.
• Update (6 October, after passage of the law): Indah Anggoro Putri, the Manpower Ministry's Director General for Industrial Relations and Social Security, said next year's minimum wage still uses the current government regulation, and that the new wage provisions are expected first for the 2028 minimum wage because the law takes effect one year after it is enacted and promulgated; asked whether the 2028 minimum wage would use the new law, the answer was "Insyaallah" (God willing) (CNBC Indonesia). The Director General also said the new law adds a decent-living-needs (KHL) survey run by Statistics Indonesia (BPS) in consultation with the wage councils.
• Update (20 October): KSPI and Partai Buruh president Said Iqbal announced waves of demonstrations in 38 provinces, including DKI Jakarta, from 15 to 30 October, held in each region at local government centres. The demands: a 2027 provincial and sectoral minimum-wage rise of 7.5% to 9.5%, clearer rules on outsourcing and severance pay, that governors follow district/city wage recommendations, and, in West Java, follow-up on a court ruling on sectoral wages. His release gives 1 November 2026 as the date for setting the 2027 minimum wage; the regulations we have read give 21 November for the provincial and 25 November for the district/city deadlines (Kompas.com, 13 October).
• Update (21 October): at the Presidential Palace, Manpower Minister Yassierli said the 2027 formula 'refers to the new law' (CNN Indonesia, 21:15 WIB), and that the 2027 rate will follow the new law on its points, to be discussed first in the national tripartite forum (LKS Tripnas) and then the National Wage Council, with the decent-living-needs (KHL) estimated from available data; the final rate is set by each governor after the regional wage council (Kontan, 12:43 WIB). The reports do not explain how this relates to PP 49/2025 or to the one-year gap before the law takes effect, and they contradict the 6 October statement above, so we treat the 2027 formula as unresolved.
• Still unconfirmed for 2027: the unions' 7.5–9.5% request is a simulation, not a decision, and we found no official 2027 rate. The earlier 1 November and 10 November dates cited by some media remain unconfirmed; the regulation text gives 21 and 25 November.

Sources

• JDIH Kemnaker — Peraturan Pemerintah Nomor 49 Tahun 2025 (second amendment to PP 36/2021 on wages; primary source: formula, α range, 25 November UMK deadline, 2026 transitional deadline)
• BPK — PP No. 51 Tahun 2023 (Article 29: provincial minimum wage announced by 21 November)
• CNBC Indonesia — Ditanya Formula Upah Minimum 2027, Menaker Yassierli Jawab Begini (15:05 WIB, 18 September)
• Bisnis.com — Menaker: Formula UMP 2027 Tunggu RUU Pelindungan Ketenagakerjaan Rampung (16:01 WIB, 18 September; remarks at BPS)
• periskop.id — KSPI Usul Kenaikan Upah Minimum 2027 Sebesar 7,5 Hingga 9,5% (17 September; Said Iqbal)
• Pajakku — Aturan Upah Minimum Terbaru dalam PP 49/2025: Nilai Alfa Berubah, Formula Tetap (α range widened from 0.10–0.30)
• CNBC Indonesia — Formula Upah Buruh 2028 Bakal Berubah, Kenaikan UMP 2027 Gimana? (6 October; Indah Anggoro Putri, Manpower Ministry: next year still uses the current PP, new rules expected from 2028)
• Kompas.com — Buruh Akan Demo Bergelombang 15-30 Oktober, Tuntut UMP 2027 Naik 9,5 Persen (22:05 WIB, 13 October 2026; Said Iqbal, KSPI and Partai Buruh)
• CNN Indonesia — Menaker: Formula UMP 2027 Mengacu UU Baru (21:15 WIB, 21 October 2026; Yassierli at the Presidential Palace)
• Kontan — Menaker Pastikan Penetapan UMP 2027 Sesuai UU Perlindungan Ketenagakerjaan Baru (12:43 WIB, 21 October 2026)