2021 City/District Minimum Wage of Jawa Island

Jawa is an island of Indonesia and the site of its capital city, DKI Jakarta. Jawa consists of two Special Regions (DKI Jakarta and DIY) and four Provinces (Jawa Barat, Banten, Jawa Tengah and Jawa Timur).

Since the Dutch colonialism, Jawa is the centre of economic life in Indonesia. The bulk of the top country’s industry sectors and manufacturing mainly concentrate in the Island with approximately 60% of manufacturing operates in the Western Part of the Island (DKI Jakarta, Banten and Jawa Barat).

The heavy concentration of country’s industry sectors and manufacturing is shown by its City/District minimum wage trend. In 2021, at least 7 municipalities in the Province of Jawa Barat (West Java), five (5) municipalities in the Province of Banten and taken into account the Provincial Minimum Wage of the Special Region of Jakarta; all have minimum wage more than 4million Rupiahs per month (equivalent to USD 283). In comparison, only the Province of Jawa Timur (East Java) has 5 municipalities with minimum wage more than 4million Rupiahs. All other Province and Special Region: the Province of Jawa Tengah (Central Java) and Special Region of Yogyakarta (DIY), have no municipality with minimum wage reaching 4million Rupiahs.  

2021 Provincial Minimum Wage

All the provinces and special regions in the Indonesia have issued the 2021 provincial minimum wage on 1 November 2020 (see below).

Whilst, the Minister of Manpower Circular Letter issued on 26 October 2020 addressed to all of the Governors in Indonesia direct them to maintain the same amount of figure as per the 2020 provincial minimum wage; five provinces and special regions decide differently with with the Circular Letter directive. This likely a micro reflection of the Central Government policy efficacy at the regional level and mismatch of labor politics between Central and Regional Governments.