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Indonesia Caps Minimum Wage Increase at 10% for 2023

Morning commuters in Jakarta, Indonesia.
Photographer: Dimas Ardian/Bloomberg

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By Grace Sihombing and Claire Jiao

November 20, 2022 at 9:52 AM UTC

This article is for subscribers only.

Indonesia announced a minimum wage increase for 2023 that was smaller than labor unions had demanded, risking protests by workers.

Minimum wages across Indonesia will rise by a maximum of 10% next year, the Ministry of Manpower said, as it set a new formula for computing the increase. Provinces will have until Nov. 28 and cities until Dec. 7 to decide minimum wage levels that will come into force on Jan. 1.