Bekasi, Indonesia – A compromise has been reached on the 2026 minimum wage for Bekasi Regency, a major manufacturing hub east of Jakarta, following tense negotiations between worker representatives, employer groups, and government officials. the agreement, finalized late Wednesday, sets the new minimum wage at Rp5.938.885 (approximately $37.74 USD) – a 6.84 percent increase from the current rate. The decision impacts an estimated one million workers in the regency, according to data from the Bekasi Regency Manpower office, and comes amid national scrutiny of fair labor practices and cost-of-living adjustments.
Bekasi, Indonesia – A new minimum wage for Bekasi Regency in 2026 has been agreed upon after a lengthy negotiation process, officials announced late Wednesday, December 19th. The decision impacts tens of thousands of workers in the industrial region east of Jakarta, and comes after months of discussion between government representatives, labor unions, employer groups, and academic experts.
The Bekasi Regency Wage Council (Depekab) reached a consensus to raise the minimum wage by 6.84 percent, from Rp5.558.515,10 to Rp5.938.884,18 (approximately $37.74 USD based on current exchange rates), rounded to Rp5.938.885. The agreement followed a full day of meetings at the Bekasi Regency Labor Office in Cikarang Pusat, attended by 35 stakeholders.
The process wasn’t without friction. Labor groups initially pushed for a 9.58 percent increase, citing a recent Constitutional Court ruling. However, employer representatives argued for a smaller adjustment, referencing government regulations regarding the “alpha” variable – a factor used in wage calculations – which allows for a range of 0.5 to 0.9.
Ultimately, the government proposed using an alpha of 0.9, based on inflation rates of 2.19 percent for West Java and 5.17 percent for Bekasi Regency, resulting in the 6.84 percent increase. “The process of negotiation was very dynamic and not easy,” said Sarino, coordinator of the Bekasi Labor Alliance Against (BBM). “This agreement is the result of a long struggle, and we appreciate all the workers who supported us from morning to night.”
A vote confirmed the decision, with 24 votes in favor from government and labor union representatives. Eight votes were cast against the increase by representatives from the Indonesian Employers Association (APINDO), who maintained their preference for a lower adjustment of Rp5.795.228,21. The approved wage will now be recommended to the Bekasi Regent and forwarded to the West Java Provincial Government for final ratification.
In addition to the regional minimum wage, the council also discussed sector-specific minimum wages (UMSK). They agreed to recommend 60 classifications of the Indonesian Standard Industrial Classification (KBLI) for UMSK adjustments, with increases ranging from 7.10 percent to 7.62 percent of the current minimum wage. Labor groups had initially proposed around 156 KBLI classifications, but the final number represents a compromise.
The Bekasi Regent is expected to submit the recommendations to the West Java Provincial Wage Council by December 22, 2025, to formalize the UMK and UMSK for 2026. The agreement underscores the ongoing efforts to balance worker welfare with economic considerations in Indonesia’s key industrial areas.
The meeting was closely monitored by members of the BBM, and a gate at the Labor Office was reportedly damaged during a surge of protestors. Despite the incident, the demonstration remained orderly throughout the day and evening.
