Bali Labour Department Reveals Provincial Minimum Wage Does Not Meet Living Standards, Minimum Rp 5 Million
Denpasar, VIVA – The Head of the Labour and Energy and Mineral Resources Department (Disnaker and ESDM) of Bali, Ida Bagus Setiawan, has admitted that the current Provincial Minimum Wage (UMP) does not yet align with living standards in Bali.
Setiawan, while receiving hundreds of members from the Independent Workers’ Union Federation (FSPM) Bali ahead of International Labour Day, stated that a fair amount would be Rp 5 million, whereas the current UMP in Bali remains at Rp 3.2 million.
“The challenge ahead is that the living cost component in Bali is around Rp 5 million, while the UMP we can set is Rp 3.2 million, so there needs to be a very drastic and massive leap to achieve that,” he said in Denpasar, quoted on Friday, 1 May 2026.
Setiawan agrees with the labour unions that Bali, particularly the tourism sector, contributes significantly to the nation’s foreign exchange, but uneven economic growth in Bali is one factor making it difficult to increase wage figures.
To this end, the regional government emphasises that it will not remain passive; equitable infrastructure development across Bali is a priority to ensure tourism activities are spread evenly and support economic growth as one indicator in UMP calculations.
“Regarding the data from tourism, it’s true; in terms of financial circulation and foreign exchange, it’s nearly Rp 170 trillion and that’s absorbed, but the absorption into the workforce is not proportional,” he stated.
In addition to promoting equity, the Bali Labour Department also promises to strengthen labour oversight of companies or employers that violate regulations.
“I agree that oversight is a key to enforcing regulations and rules; hopefully, in connection with fixed-term employment contracts (PKWT), and demands regarding rights and obligations, we can gradually and systematically reduce, even eliminate or bring to zero,” said Setiawan.
The Secretary of the Independent Workers’ Union Federation (FSPM) Bali, Ida I Dewa Made Rai Budi Darsana, stated that one of the issues for workers in Bali, especially in the tourism sector, is not receiving fair wages.
Yet, Bali serves as the backbone of national tourism foreign exchange, contributing more than 50 percent of Indonesia’s total tourism foreign exchange.
However, tourism actors, particularly workers in the hotel accommodation and restaurant sectors, face injustice, with the main factor being the massive application of fixed-term employment contract (PKWT) status, internship workers, and daily work agreement (PKH) workers.