Karawang Regency's 2018 Sector-based Minimum wage

On 8 June 2018, the Governor of West Java (Jawa Barat) issues Decree No. 561/Kep.577/ Yanbangsos/2018 on the 2018 sector-based minimum wage of the Karawang regency. Infamous for its high minimum wage figure, the sector based-minimum wage of the said regency applies for 45 type of industries with amount ranging from around Rp. 3,900,000 to Rp. 4,500,000 per month.

The Governor Decision stipulates that the sector-based minimum wage applies as of 1 January 2018, meaning that the relevant industry should back pay the wage shortage from 1 January 2018 to comply with the sector-based minimum wage.

The nominal value of sector-based minimum wage in Karawang regency in 2018 is as follow:

1. Food Industry I: Rp 4,524,748.10

2. Food Industry II: Rp 4,539,523

3. Beverage Industry: Rp 4,524,748.10

4. Other Cigarette Industry: Rp 4,524,748.10

5. Textile Industry: Rp 3,930.972.10

6. Footwear Industry: Rp 3,934,226.50

7. Wood Industry: Rp 4. 524. 748.10

8. Paper and Paper Goods Industry: Rp 4,524,748.10

9. Coal and Oil Refinery Industry: Rp 4,539,523

10. Petroleum Refining Products Industry: Rp. 4,539,523

11. Chemical and Chemical Products Industry: Rp. 4,539,523

12. Manufacture of Plastic and Artificial Rubber: Rp. 4,539,523

13. Other Chemicals Industry: Rp. 4,539,523

14. Manufacture of Artificial Fibers: Rp. 3,934,226.50

15. Pharmaceutical Industry: Rp. 4,539,523

16. Rubber Industry I: Rp. 4,301,426.90

17. Rubber Industry II: Rp. 4,539,523

18. Plastic Industry I: Rp. 4,301,426.90

19. Plastic Industry II: Rp. 4,539,523

20. Plastic Industry III: Rp. 4,535,358.30

21. Manufacture of Non-Metal Products 1: Rp. 4,301,426.90

22. Manufacture of Non-Metal Products II: Rp. 4,539,523

23. Manufacture of Non-Metal Products III: Rp. 4,524,748.10

24. Basic Metal Industry: Rp. 4,539,523

25. Metal Goods Industry: Rp. 4,539,523

26. Electronic Industry: Rp. 4,539,523

27. Electricity Industry I: Rp. 4,539,523

28. Electricity Industry II: Rp. 4,539,523

29. Electricity Industry III: Rp. 4,539,523

30. Machinery Industry: Rp. 4,539,523

31. Manufacture of Four or More Wheel Vehicles: Rp. 4.,547,852.40

32. Motor Vehicle Industry, Trailer and Semi Trailers: Rp. 4,539,523

33. Motorcycle Industry I: Rp. 4,547,852.40

34. Motorcycle Industry II: Rp. 4,539,523

35. Furniture Industry: Rp. 4,524.748.10

36. Children’s Toy Industry: Rp. 3,930,972.10

37. Glasses Industry: Rp. 4,301,426.90

38. Electricity: Rp. 4,539,523

39. Natural and Artificial Gas: Rp. 4,539,523

40. Construction: Rp. 4,524,748.10

41. Wholesale Trade of Machinery, Equipment and Other Equipment: Rp. 4,539,523

42. Financial Activities: Rp. 4,301,426.90

43. Insurance: Rp. 4.301.426.90

44. Real Estate: Rp. 4,524,748.10

45. Sports and Recreation: Rp. 4,301,426.90

UMSK Karawang 2018

East Java's 2018 Sector-based Minimum Wage

East Java (Jawa Timur) Governor Regulation No. 1 of 2018 on Regency/City Sector-based Minimum Wage in East Java for Year 2018 regulates sector-based wage rates as follows:

a. Sidoarjo Regency:

  • Group I of + 9% (nine percent) of the city / district minimum wage,
  • Group II of + 8% (eight percent) of the city / district minimum wage, and
  • Group III of + 6% (six percent) of the city / district minimum wage.

b. Pasuruan Regency:

  • Group I of + 9% (nine percent) of the city / district minimum wage,
  • Group II of + 8% (eight percent) of the city / district minimum wage, and
  • Group III of + 6% (six percent) of the city / district minimum wage.

c. Surabaya City is + 5% (five percent) of the city/district minimum wage for all industry groups.

The details on industry classification and the respective sector-based minimum wage is enclosed below.

Pergub Jatim No. 1 tahun 2018



The President Regulation No. 20 of 2018 on the Employment of Foreign Workers/Expatriates

The Indonesian government asserts that in order to support the national economy and the expansion of employment opportunities through increased investment, it considers the importance to deregulate foreign migrant workers employment. Thus, on 26 March 2018, President Joko Widodo signed the Presidential Regulation No. 20 of 2018 on the Use of Foreign Migrant Workers. The writer asserts that most likely the Presidential Regulation is issued to align national regulations to the principle of ASEAN economic community which is liberating trade barrier and labour market within the ASEAN countries.

The Presidential Regulation states that foreign migrant workers can be employed for certain positions and at certain times, which is done with due regard to domestic labor market conditions. Further, employer of foreign migrant workers, according to this Presidential Regulation, shall prioritize Indonesian in all types of positions available. In the situation that positions in question cannot be occupied by Indonesian, they may be occupied by foreigners.

Limitation on the type of work or position that prohibited for foreign migrant workers is that they cannot hold any Human Resources position or certain work or level determined by Minister (of Manpower?). This restriction is stipulated in the Article 4 paragraph (1,2) of the respective Presidential Regulation.

The Presidential Regulation also stipulates that employers in certain sectors may employ foreign workers who are employed by another employer in the same position, no later than the expiry of the foreign workers employment period as stipulated in their initial employment agreement with the first employer. The type of position, sector, and procedures for the use of foreign workers as intended, according to this Presidential Regulation, shall be further stipulated by a Ministerial Regulation.

The Regulation also stipulates that employer must have RPTKA (Plan of Use of Foreign Workers) approved by the Minister (of Manpower) or appointed official, which at least include:

  1. reasons for the employment of foreign workers;
  2. position and /or level of foreign workers in the organizational structure of the company;
  3. duration of employment of foreign workers; and
  4. appointment of Indonesian workers as overseer of foreign workers.

However, employer is not required to issue RPTKA in situations where the foreign migrant is:

  1. shareholder who is a member of the Board of Directors or a member of the Board of Commissioners of the employer;
  2. diplomatic and consular officers to representatives of foreign countries; or
  3. conduct the type of work required by the government.

This is stipulated by Article 10 paragraph (1) of the Presidential Regulation.

For emergency and urgent work, according to this Presidential Regulation, employers may employ foreign workers by applying for RPTKA approval to the Ministry (of Manpower) or appointed official within 2 (two) working days after the expatriate start working. Furthermore, the approval of RPTKA shall be issued no later than 1 (one) working day after the application is received.

Of the tax and fee entails to the employment of foreign workers, the Presidential Regulation stipulates that employer shall pay compensation funds for the employment of foreign workers upon receipt of the (approval) notification, and shall be made through a bank appointed by the Minister, which is a Non-Tax State Revenue. Foreign workers should also pay income tax in accordance with Regulation of the Director General of Tax (DGT) Number Per – 43/PJ/2011.

Payment of compensation fund (and income tax) for the employment of foreign workers and the obligation to have RPTKA is not required for government agencies, foreign representatives, and international agencies that employ foreign workers.

Pepres No. 20 Tahun 2018

2018 (Industry) Sector Minimum Wage: DKI Jakarta

In February 2018, the Governor of DKI Jakarta Province signed the enactment of Jakarta Governor Regulation No. 16 of 2018 on Provincial Minimum Wage in 2018 (UMSP 2018). The list of UMSP nominal DKI Jakarta 2018 is as follows:


  1. Cosmetics and cosmetics industry: Rp 3,760,000
  2. Industry of organic basic chemicals with production of sulfuric acid (sulfuric acid), oleum, sodium silicate (water glass), aluminum sulfate and fatty acid: Rp 3,760,000
  3. Other basic organic chemical industry: Rp 3,760,000
  4. Inorganic basic chemical industry – industrial gas with production of argon, oxygen, nitrogen, hydrogen, acetylene and carbon dioxide: Rp 3,760,000
  5. Soaps and household cleaning supplies industry including toothpaste: Rp 3,830,438
  6. Glue adhesive industry: Rp 3,760,000
  7. Manufacture of dyes / pigments, paints, inks, dyes and similar type: Rp 3,760,000
  8. Manufacture of pipe and hose and plastic with production of PVC pipe, PVC plastic hose and PP plastic hose: Rp 3,760,000
  9. Packaging and glassware industry: Rp 3,760,000
  10. Industrial goods and cement and lime for construction such as (a) Poles and concrete pads, and (b) Cement mix (ready mix): Rp 3,760,000
  11. Glass plate glass industry: Rp 3,760,000
  12. Safety glass industry: Rp 3,760,000


  1. Tin packaging industry: Rp 3,726,960
  2. Iron and steel making industry with activities: (a) Iron and steel base alloy, and (b) Scrap and alloy steel: Rp 4,390,611
  3. Iron and steel foundry industry with producer of iron, cast steel, galvanized and metal coating: Rp 4,390,611
  4. Steel cutting services of metal goods, including nail, safe, office filling and the like industry: Rp 4,390,611
  5. Lathe service industry for special work on metals and goods and metals (lathe industry): Rp 4,398,848
  6. Radio, television, sound recording and image production equipment includes (a) Aircraft receiving color television broadcast, (b) Tape recorder, (c) Audio Compact Disc Player / CD Player, and (d) Audio Amplifier: Rp 4.264.422
  7. Household appliance industry using electricity / water pump industry, air conditioner, washing machine, refrigerator, fan, electric iron, digital camera, hand phone: Rp 4.264.422
  8. Manufacture of musical instruments such as piano / organ, guitar, drum: Rp 4,288,610
  9. Electrical and telephone cable industry: Rp 4.430.476
  10. Electric motors, generators, transformers, control equipment and industrial transformers, including those producing KWH meters: Rp 4,587,562
  11. Battery industry: Rp 4,100,541
  12. Offshore repair industries, boats, offshore modification: Rp 3,859,205
  13. Manufacture of kitchenware both aluminum and non aluminium: Rp 4,075,742
  14. Base metals of noble and other non-ferrous base metals industry: Rp 4,326,658
  15. Jewelry and precious metal industry: Rp 4,051,200
  16. Extrusion industry, non-ferrous metals industry: Rp 4,295,268
  17. Extrusion industry, non-ferrous metals such as copper extrusion and, alloy: Rp 4,295,268
  18. Aluminum and tungsten extrusion industry Rp 4,295,268


  1. Manufacture of two-and three-wheeled components and motor equipment with production of two-wheel motorcycle body parts: Rp 4,470,465
  2. Manufacture of pistons for motorcycles of two and three wheels and muffler/exhaust damper: Rp 4,470,465
  3. Industrial electric accumulator and battery (ac-cu, battery): Rp 4,470,465
  4. Manufacture of components and spare parts of the prime mover motor with the production of: (a) Engine Block, (b) Cylinder Head, and (c) Mechanical transmission industry other than motor vehicle / camshaft industry: Rp 4,470,465
  5. Manufacture of equipment and components of motor vehicles: Rp 4,470,465
  6. Automobile industry of four or more motor vehicles: Rp 4,470,465
  7. Manufacture of two and three-wheeled motor vehicles: Rp 4,492,830
  8. Industry of four or more motorized vehicles: Rp 4,492,830
  9. Transportation and transport equipment / heavy equipment industry: Rp 4,492,830


  1. Insurance: Rp 3,830,438 (Assets> Rp 1 Trillion)
  2. Non-Foreign Exchange Bank: Rp 3,830,438 (Non SME)
  3. Foreign Exchange Bank: Rp 3,830,438 (Foreign Exchange Bank)
  4. Bank Syariah: Rp 3,830,438, – (Sharia Bank)


  1. Industry of cooking oil and palm oil: Rp 3,830,438
  2. Frozen fish industry and other aquatic biota with frozen tuna production, large frozen tiger prawns, large white shrimp and large frozen barong shrimp: Rp 3,830,438
  3. Dairy industry: Rp 3,830,438
  4. Flour industry: Rp 3,830,438
  5. Instant noodle industry: Rp 3,830,438


  1. Hospital Service: Rp 3,830,438  (Hospital Class A, B and C)
  2. Pharmaceutical Industry: Rp 3,830,438 (Assets Rp 1 Trillion)


  1. Weaving industry: Rp 3,685,269
  2. Knitted garment industry: Rp 3,655,000
  3. Apparel and textile industry: Rp 3,655,000
  4. Footwear (for daily use) industry: Rp 3,720,996,53 (Export and Non MSME)


Hospitality Services:  Rp 3,830,436 (Stars 3, 4 and 5)


  1. Telecommunication Provider (Cellular): Rp 3,715,436 (Non SME)
  2. Data Communication, Internet and Value Added: Rp 3,715,436 (Non SME)
  3. Software and Applications: Rp 3,715,436 (Non SME)
  4. Vendor, Contractor and Telecommunication Building: Rp 3,715,436 (Non SME)


Retail: Rp 3,978,506 (Supermarket, Hypermarket, Wholesale, Department Store)


  1. Labour Helper: Rp 138,077 per day
  2. Land Digger: Rp 158,789 per day
  3. Head of Masons: Rp 173,978 per day
  4. Masons: Rp 158,789 per day
  5. Head of Carpenters: Rp 173,978 per day
  6. Carpenters: Rp 158,789 per day
  7. Heads of Blacksmiths: Rp 173,978 per day
  8. Blacksmiths: Rp 158,789 per day
  9. Head of Painters: Rp 173,978 per day
  10. Painters: Rp 158,789 per day
  11. Asphalt Asperators: Rp 138,077 per day
  12. Labour Supervisors: Rp 185,023 per day
  13. Installer: Rp 173,978 per day
  14. Installer Helper: Rp 158,789 per day
  15. Grass Cutter/Lawn Mower: Rp 138,077 per day
  16. Head of Plumbers: Rp 158,789 per day


Pergub UMSP DKI Jakarta No.16 Tahun 2018