Minimum Wages Will Increase by an Average of 7.5% in 2023
The Indonesian Ministry of Manpower has announced the average increase in minimum wages for 2023: It is a nominal (on a rupiah basis; US$D 1 = IDR 15,731) of 7.5%. In Jakarta, the minimum wage will increase by 5.6%. According to the exchange rate of the end of November 2022, the new minimum wage corresponds to USD 311 per month. In the remaining five provinces of Java, the increases are between 6.4% (Banten) and 8% (Central Java). The monthly minimum wages there are then between USD 115 and USD 169. For many foreign companies, Indonesia is a location for cheap contract manufacturing. The monthly minimum wages – with a standard working week of 40 hours – are an important factor for them.