Indonesia Raises Minimum Wage By 6.5% in 2025, Prabowo Says (1)

Indonesian President Prabowo Subianto announced an average 6.5% increase in minimum wages for next year as consumption falters in Southeast Asia’s largest economy.

“The manpower minister proposed a 6% increase in the minimum wage. However, after discussing it and holding a meeting with labor leaders, we decided to increase the average,” Prabowo said in a press conference after a cabinet meeting on Friday.

The minimum pay per sector will be later determined by the wage board. The government will also seek other opportunities to improve workers’ welfare, the president said.

Prabowo, who took office last month, is under pressure to ...