A total of 29 Indonesian provinces have already confirmed their new provincial minimum wages for the year 2015. Overall (excluding the four remaining provinces), the average Indonesian minimum wage rises 12.77 percent (y/y) in 2015. Although this growth is considerable, it is smaller than Indonesia’s minimum wage growth in 2014 (19.10 percent y/y). The highest minimum wage growth occurred in the province of Bangka Belitung (28 percent), while the lowest wage increase was in Riau (0.58 percent).
Each Indonesian province sets a minimum wage while taking into account the assumed needs for decent living per province (Decent Living Index, Indonesian: Kebutuhan Hidup Layak).
The provincial minimum wages (and Decent Living Indices) were set before the central government decided to raise subsidized fuel prices more than 30 percent on 18 November 2014.
Indonesia 2015 Minimum Wages per Province:
|Province|| Minimum Wage
| Minimum Wage
Growth (yoy, %)
| Minimum Decent Living
|Nusa Tenggara B.||1,330,000||9.92||1,430,064|
|Nusa Tenggara T.||1,250,000||8.60||1,652,137|
Source: Investor Daily