Jakarta Govt Rolls Out Incentives to Improve Workers' Welfare

Jakarta Governor Pramono Anung stated that the Jakarta Provincial Government will prepare several incentives to improve workers' welfare.

"The Jakarta Government will provide these incentives,"

He admitted that he has instructed the Manpower, Transmigration, and Energy (Nakertransgi) Agency to roll out three incentives covering transportation, health, and clean water access.

"I have instructed the Manpower Agency and the Wage Council's recommendation. The Jakarta Government will provide these incentives," Pramono confirmed on Monday (12/22).

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Through this initiative, workers will receive free access to public transportation managed by the Jakarta Government, along with BPJS health insurance coverage for those not yet covered by their employers. Moreover, workers will receive subsidies to make accessing clean water managed by PAM Jaya more affordable.

"I've asked PAM Jaya to ensure that if workers need a water subsidy, we'll make it available for them," he added.

Pramono emphasized that these measures were taken because such components are not specifically regulated under Government Regulation (PP) No. 51/2023 on Wages.

"These aren't outlined in PP 51. But we understand that in today's global economic climate, things like these can empower workers with the energy and motivation to perform better,” he explained.

On that occasion, Pramono also addressed the ongoing discussions around the 2026 provincial minimum wage (UMP). Although the official deadline for UMP announcement is December 24, he urged for the process to be completed sooner.

"If discussions conclude today, we will immediately announce the official 2026 UMP. Although the deadline is December 24, I hope we can wrap it up today," he mentioned.

He reaffirmed that the Jakarta Government's role is to mediate between companies and workers. The central government has set a specific wage index variable (alfa) within the 0.5 to 0.9 range.

"Deliberations are ongoing, and hopefully they conclude today. That's the target I've set. Of course, some back and forth is inevitable," he shared.