Client Newsflash

New Minimum Wage for Certain Sectors for DKI Jakarta Province

The Governor of DKI Jakarta Province stipulates a new provincial sectoral minimum wages (“UMSP”) that apply to certain sectors in DKI Jakarta Province under the Governor Regulation No. 20 of 2017 dated February 14, 2017 on Provincial Sectoral Minimum Wages for 2017 (the “Regulation”). The Regulation stipulates 3 (three) following sectors that have to comply with the UMSP which shall be applied retroactively as of January 1, 2017:

  1. Chemicals, Energy, and Mining;
  2. Metals, Electronics, and Machinery; and
  3. Pharmaceuticals and Health.

It is mandatory for every employer in DKI Jakarta Province that engages in the abovementioned sectors to comply with the UMSP under the Regulation for all employees whose work period is less than 1 year. If the work period is more than 1 year, the monthly salary shall be determined between the employee and the employer.

Pursuant to the Regulation, the abovementioned sectors wage in DKI Jakarta Province are adjusted upward from the previous monthly wages under the Governor Regulation No. 8 of 2016 dated January 13, 2016 on Provincial Sectoral Minimum Wages for 2016, as elaborated in the following table.

March 29, 2017

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The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.


©2017 | AKSET. All rights reserved.