Bali Governor reviews 2027 minimum wage projections

Bali Governor Wayan Koster has pledged to review the 2027 Provincial Minimum Wage (UMP) to better align it with the Decent Living Standard (KHL). During a meeting with students and labor unions in Denpasar, Koster addressed demands for a wage closer to Rp5.2 million.

Under current government regulations (PP No. 51/2023), using the highest alpha coefficient of 0.9, the projected UMP for 2027 is approximately Rp3.45 million, representing a 7.6 percent increase from 2026. Koster noted that while the projected figure is low, the government must balance worker aspirations with the economic risks to businesses, warning that a jump to Rp5.2 million could lead to widespread company closures.

The Bali Regional Research and Innovation Agency (Brida) has been tasked with testing various wage schemes, including provincial, regency, and sectoral minimum wages, to find an optimal balance.