Indonesia sets 1.09% minimum wage hike in 2022

INDONESIA: The government will increase the provincial minimum wage by 1.09% in 2022, according to the Manpower Ministry's Director General for Industrial Relations Indah Anggoro.

The lowest average provincial minimum wage will be in Central Java at Rp 1,813,011 (USD 128), while the highest average minimum wage will be in Jakarta, at Rp 4,453,724 (USD 314).

This comes after there were reports on employers that violated the set minimum wage.

"Employers must observe the minimum wage requirement while deciding their employees' salaries, lest they will be penalised," said House of Representatives speaker Puan Maharani.

DPR speaker Maharani, also warned that employers found violating the minimum wage requirement would face a maximum four years in prison and/or pay a USD28,000 fine, as per Law 11 of 2020 on Job Creation.

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