A minimum wage is the lowest monthly wage – a wage floor. It is set annually by the Governors as a safety net. The Indonesia minimum wage regime stipulates that it may be set at the Province level (the Provincial Minimum Wage/Upah Minimum Provinsi-UMP) or at the District/City level (the District/City Minimum Wage or Upah Minimum Kabupaten/Kota – UMK). Minimum wage provisions are exempt for micro and small businesses.
The minimum wage only applies to workers with less than one year of service. Wages for workers with one year of service or more must be guided by the wage structure and scale that must be prepared and implemented by companies.
Indonesia Labour Database 