What Employers Need to Know About the 6.5% Minimum Wage Hike in 2025

Back in October 2024, Indonesia’s Constitutional Court (Mahkamah Konstitusi/MK) rendered Decision No. 168/PUU-XII/2023 (“Decision 168/2023”) in response to a petition for a formal judicial review of  Law No. 13 of 2003 on Manpower (“Law 13/2003”), as most recently amended by Law No. 6 of 2023 on the Enactment of Regulation of the Government in Lieu of Law No. 2 of 2022.[1] The various verdicts rendered under Decision 168/2023 include provisions pertaining to minimum wages.[2] It should be noted that Decision 168/2023 was briefly summarized in the following edition of Indonesian Legal Brief (“ILB”): “MK Decision No. 168/PUU-XII/2023: Balancing Employer-Employee Dynamics”.