Bali Provincial Government Studies Wage Formula for Tourism Sector Workers

The Bali Provincial Government (Pemprov) has confirmed that the provincial minimum wage (UMP) and district/city minimum wages (UMK) in Bali will increase in 2027 compared to the previous year. The amounts of the increases are still being calculated.

Bali Governor Wayan Koster revealed that the provincial government is also studying a sectoral wage formula, specifically for tourism workers. According to Koster, this is important because more than 60 per cent of Bali’s economy depends on the tourism industry.

“So this will be discussed, because in Bali the majority of businesses are in tourism,” Koster said in Denpasar on Monday (7/9/2026).

“The minimum wage does need to be evaluated,” he added.

Koster explained that a single minimum wage cannot be applied uniformly across all business sectors, particularly if applied to micro, small and medium enterprises (UMKM).

“If we apply the UMP and it applies equally to all sectors, perhaps for the tourism sector it’s fine, it’s possible. But for UMKM? It would be difficult for them. Small food stalls would struggle,” Koster said.

Therefore, Koster emphasised that the formula for setting the minimum wage in the tourism sector needs to be calculated carefully. This is also to address the gap between the minimum wage and the decent living standard (KHL) in Bali.

Based on data from the Ministry of Manpower, Bali’s decent living standard has reached Rp 5.2 million, while Bali’s minimum wage is only around Rp 3.2 million. This gap indicates that there are still problems in the formula for setting the minimum wage in the tourism sector.

“It needs to be calculated first, and carefully,” Koster said.

According to Koster, any adjustment must also take into account the business characteristics and economic conditions of each district/city. He also stressed that minimum wage adjustments should not burden people-based business sectors.

“That is why what needs to be done is to improve the sectoral minimum wage at the district/city level, because tourism and tourism taxes fall under the districts/cities,” Koster said.

“And the others must not be weighed down. UMKM and other businesses, or people-based enterprises, must not face new burdens,” he concluded.