THE NEW MINIMUM WAGE FOR THE JAKARTA INDUSTRIAL SECTOR FOR 2018
BY : Law Office Yang & Co
The Governor of the Special Region of Jakarta (“Governor”) has determined the 2018 minimum wages for workers in several industrial sectors through the issuance of the Governor Regulation No. 16 Year 2018 concerning the 2018 Minimum Wages for the Industrial Sector (Upah Minimum Sektoral Provinsi/”UMSP”) (“Governor Regulation No. 16/2018”).
The Governor Regulation No. 16/2018 sets out statutory provincial minimum wages for eleven industrial sectors in Jakarta, which are:
- Chemicals, energy and mining;
- Metalwork, electronics and machinery;
- Automotive;
- Insurance and banking;
- Food and beverages;
- Pharmaceutical and health;
- Textiles, clothing and skins;
- Tourism;
- Telecommunications;
- Retail; and
- Construction and public works.
The Governor Regulation No. 16/2018 sets higher statutory minimum wages in comparison with the Governor Regulation No. 20/2017 as the previous regulation of UMSP and also regulates additional minimum wages for several new sub-sectors which were not regulated in the previous regulation. The following are the some of the relevant updated minimum wages for sectors and sub sectors:
| No. | Sectors | Sub-Sectors | Monthly Minimum Wage (in IDR) |
|---|---|---|---|
| 1. | CHEMICALS, ENERGY AND MINING | Cosmetic materials and cosmetics | 3,760,000 |
| Soap and household cleaning products, including toothpaste | 3,830,438 | ||
| Cement and chalk for construction purposes | 3,760,000 | ||
| 2. | METALWORK, ELECTRONICS AND MACHINERY | Canning | 3,726,960 |
| Musical instruments | 4,288,610 | ||
| Household electrical equipment | 4,264,422 | ||
| 3 | AUTOMOTIVE | Two-and three-wheeled vehicles | 4,492,830 |
| Four-or-more-wheeled vehicles | 4,492,830 | ||
| 4. | INSURANCE AND BANKING | Insurance | 3,830,438 (for insurance companies with assets higher than IDR 1 trillion) |
| Sharia banks | 3,830,438 | ||
| Foreign-exchange banks | 3,830,438 | ||
| 5. | FOOD AND BEVERAGES | Palm oil for cooking | 3,830,438 |
| Milk | 3,830,438 | ||
| Instant noodles | 3,830,438 | ||
| 6. | PHARMACEUTICAL AND HEALTH SERVICES | Pharmaceutical | 3,830,438 (for pharmaceutical companies with assets higher than IDR 1 trillion) |
| Hospital services | 3,830,438 | ||
| 7. | TEXTILES, CLOTHING AND SKINS | Weaving | 3,685,269 |
| Knitted garments | 3,655,000 | ||
| Daily footwear | 3,720,996.53 (for footwear for export purposesand for companies which are notmicro-, small- or medium-scaleenterprises (“SME”) |
||
| 8. | TOURISM | Hotel Services | 3,830,436 (for three-, four- and five-star hotels) |
| 9. | TELECOMMUNICATIONS | Cellular telecommunications providers | 3,715,436 (Non-SME) |
| Applications and software | 3,715,436 (Non-SME) | ||
| 10. | RETAIL | Retail | 3,978,506 (for supermarkets, hypermarkets,wholesalers and departmentstores) |
| 11. | CONSTRUCTION AND PUBLIC WORKS | Diggers | 158,789 (per day) |
| Carpentry heads | 173,978 (per day) | ||
| Operators of heavy equipment | 185,023 (per day) |
*Please note that the above table of minimum wages are not the complete list mentioned in the Governor Regulation No. 16/2018, as we only want to provide some sectors which we deem as common activities.
The various wages which have been set under the Governor Regulation No. 16/2018 are applicable to workers who have been working for periods of less than one year. Wages for workers who have been working for periods of more than one year will be determined based on the negotiations between workers and the employers/companies.
The Governor Regulation No. 16/2018 has been in force since 12 March 2018 but applies retroactively form 1 January 2018.
For any queries and assistants related to the above matters or if you need the complete list of minimum wages, please contact our office.
