Laborers arrange sacks of copra from Gane Barat onto a truck at Bastiong Port in Ternate, North Maluku, on Sunday (13/4/2025). The wage for copra laborers, who depend on the loading and unloading activities at the port, is between Rp100,000 to Rp250,000 per trip, depending on the amount and weight of the copra.(ANTARA FOTO/Andri Saputra)
JAKARTA, KOMPAS.com - The Employment Protection Law includes decent living requirements, or KHL, as one of the components determining the minimum wage.
“The minimum wage, as stated in Article 137, paragraphs (2) and (3), shall be established based on decent living requirements, economic conditions, and employment,” states Article 138, paragraph (1) of Law Number 27 of 2026 on Employment Protection.
The law, which was signed by President Prabowo Subianto on October 28, 2026, was published by the government on the official website of the Legal Information and Documentation Network (JDIH) of the Indonesian State Secretariat, accessed by Kompas.com on Friday (6/11/2026).
The mentioned minimum wage includes provincial minimum wage (UMP), district/city minimum wage (UMK), sectoral provincial minimum wage, and sectoral district/city minimum wage.
The minimum wage is set by the governor.
This law outlines three components that determine the minimum wage: KHL, economic conditions, and employment.
Furthermore, in Article 139, the decent living requirement reappears as one of the two bases for calculating the minimum wage. The article states:
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