Indonesia Raises Minimum Wage By 6.5% in 2025, Prabowo Says
- Approved pay hike is lower than 8%-10% sought by labor groups
- President slashes budget allotted for free meals per child
Workers on an assembly line in Tangerang, Banten, Indonesia.
Photographer: Muhammad Fadli/BloombergThis article is for subscribers only.
Indonesian President Prabowo Subianto announced an average 6.5% increase in minimum wages for next year as consumption falters in Southeast Asia’s largest economy.
“The manpower minister proposed a 6% increase in the minimum wage. However, after discussing it and holding a meeting with labor leaders, we decided to increase the average,” Prabowo said in a press conference after a cabinet meeting on Friday.