As reported by Kompas, while acknowledging that Bali’s current monthly minimum wage of Rp 3.4 million is too low, Governor Koster is now sharing his thoughts on growing demands for a new monthly minimum wage rate of Rp 5.2 million.
Bali Governor I Wayan Koster has now provided his comprehensive view regarding the higher wage demand recently advanced by labor and student groups to adjust the 2025 Bali Provincial Minimum Wage (UMP) to Rp 5,250,000 per month. They presented this demand during an audience with the “Aliansi Aksi Kamisan Bali” (Bali Thursday Action Alliance) and the Bali Regional Chapter of the Independent Workers’ Union Federation (FSPM) at the Governor’s Office in Denpasar on Wednesday, 21 October 2026.
In response to calls for the Bali Provincial Government to set the 2025 UMP at a level based on the “Decent Living Needs” (*Kebutuhan Hidup Layak* or KHL), Koster said that the provincial government is currently exploring various potential wage adjustments through an in-depth study conducted by the Bali Regional Research and Innovation Agency (Brida). Koster explained that, based on preliminary calculations using the formula stipulated in Government Regulation (PP) No. 51 of 2023 on Wages, applying the maximum “alpha index” of 0.9 – the 2025 Bali UMP would amount to Rp 3.45 million per month. This figure represents an increase of approximately 7.6 percent from the previous year’s minimum wage.
Governor Koster openly acknowledges that Rp 3.45 million is still quite low to cover the cost of living in Bali; however, he noted that the provincial government remains bound by existing national wage regulations.
“Based on this formula, there is simply no other way. Following this formula, that’s the limit—even at the highest possible figure, it only reaches 3.4 million, which, in my view, is still quite low,” Koster said before representatives of labor unions and students on Wednesday, 21 October.
Nevertheless, Koster emphasized that he remains open to using the ‘Decent Living Needs’ (KHL) indicator. He explained that Government Regulation (PP) No. 51 of 2023 allows an approach based on KHL, which the Bali Regional Research and Innovation Agency (Brida Bali) is currently examining. Koster cautioned, however, that careful consideration is necessary to ensure that any decision made has a solid legal basis.
“Look, it’s not that I’m closed off—I am very open. But we must ensure that we don’t violate regulations, which could lead to findings by the Supreme Audit Agency (BPK) and potentially escalate into legal issues,” Koster interjected. He added that wage adjustment policies must balance workers’ well-being with companies’ financial capacity, particularly in sectors outside tourism.
The Governor is concerned that raising the Provincial Minimum Wage (UMP) to Rp 5.2 million could potentially drive up production costs and the prices of goods if not calculated with great care. “In principle, I am open to this, and I thank everyone for their input. I will use this as a basis for discussion in future meetings with the Wage Council and other stakeholders, which will serve as a reference for determining the final wage amount,” Koster said.
Preliminary Projections for Regency/City Minimum Wages (UMK) in Bali
In addition to the Provincial Minimum Wage (UMP), Koster also provided an initial overview of the projected Regency/City Minimum Wage (UMK) figures for several areas across in Bali, all of which are expected to exceed the UMP:
- Badung Regency UMK: Rp 4,000,000
- Denpasar City UMK: Rp 3,760,000
- Gianyar Regency UMK: Rp 3,560,000
- Tabanan Regency UMK: Rp 3,530,000
The Bali Provincial Government plans to integrate assessments of the UMP, UMK, and sectoral minimum wages to ensure final wage determinations align more closely with the “Decent Living Standard” (KHL)—the cost of living required for a decent standard of living by setting wages at a level that won’t jeopardize business viability.
Koster requested additional time from labor union and student representatives to allow the Province to complete the full assessment process.
FSPM Grievance: Government Policies Fail to Account for Regional Realities:
Previously, the Secretary of the FSPM (Federation of Tourism, Hotel, and Restaurant Workers) for Bali, Ida I Dewa Made Rai Budi Darsana, asserted that national wage policies over the last decade have been profoundly unfair to local laborers and workers in Bali. “If I may add, sir—I just want to emphasize that for the past 10 years, we, as workers, have truly felt this injustice. Why? Because the central government sets wage policies. From our perspective, the central government does not understand the realities on the ground in the regions,” complained Dewa Made Rai.
Dewa Made Rai believes that the determination of the 2025 Provincial Minimum Wage (UMP) comes at an opportune moment, supported by a recent Constitutional Court (MK) ruling that allows regional heads to prioritize the “Decent Living Standard” (KHL) indicator over the formula stipulated in the Government Regulation on Wages. “This presents a crucial moment—an opportunity for you when setting the Provincial Minimum Wage. The Constitutional Court’s ruling, which holds the highest legal authority, explicitly allows for wages to be determined based on the value of a Decent Living Standard,” he asserted.
Dewa Made Rai also highlighted the high cost of living and the cultural obligations faced by the Balinese people, noting that local workers tend to prioritize their dignity over taking to the streets in protest. “You are probably already aware of this: the Balinese people value their word and their honor. They would rather sell their own land than take to the streets—a situation that deeply concerns us. The cultural burden is immense; upholding our customs and traditions comes at a very high cost,” he explained.
The FSPM (Federation of Workers’ Unions) also expressed disappointment with the recommendations issued by the Bali Provincial Regional House of Representatives (DPRD) following a protest on 28 September, describing them as overly generic and “normative.” This is particularly significant given that Bali is one of Indonesia’s largest contributors of foreign exchange through tourism.
“To be honest, we are disappointed with the recommendations issued by the Speaker of the DPRD. Why? Because they are merely normative. We had hoped that the DPRD would push for the 2025 Bali Provincial Minimum Wage to be based on the value of a Decent Living Standard,” he added.
“However, we hope that the situation does not end up as described by Mr. Nyoman Suwirta, Chair of Commission IV—we must ensure that Balinese workers do not become like ‘mice dying in a barn full of rice.’ Bali is renowned as a major contributor of foreign exchange to the central government, primarily through its tourism sector. Yet, what is the actual contribution back to its own people?” concluded Dewa Made Rai.
He urged the Governor to view the adjustment of the Provincial Minimum Wage (UMP) to Rp 5,250,000 as a form of *yadnya*—a sincere dedication—to the people of Bali. Meanwhile, although the Governor of Bali has expressed openness to dialogue, protesters’ representatives have vowed to keep monitoring the wage-setting process until the official announcement.
Speaking after voicing their demands at Puputan Margarana Square in Renon, Denpasar, Exel—a representative of the ‘Kamisan Bali’ (Thursday Protest) group—emphasized that their actions are not begging, but a struggle for their rights.
“We are making demands, not begging. We will closely monitor what Governor Koster has proposed today; if necessary, we will return to the Governor’s Office on the day the wage is officially set—with an even larger crowd,” Exel asserted. The protesters have warned that they will return to the Bali Governor’s Office in greater numbers if the final 2025 Provincial Minimum Wage fails to address their aspirations and the need for a decent standard of living for workers in Bali.
Related Links
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