The Provincial Government of South Sumatra (Sumsel) has officially set the Provincial Minimum Wage (UMP) for Sumsel in 2026, announcing a notable increase of 7.10%. This significant adjustment is formally outlined in the South Sumatra Governor’s Decree Number 963/KPTS/Disnakertrans/2025, issued on December 19, 2025, providing a clear legal basis for the new wage standard.
“I am pleased to announce that the Provincial Minimum Wage for South Sumatra in 2026 will be Rp 3,942,963,” stated South Sumatra Governor Herman Deru during his announcement in Palembang on Saturday, December 20.
Concurrently with the UMP announcement, Governor Deru also established the Provincial Sectoral Minimum Wage (UMSP) for Sumsel in 2026. This comprehensive directive is formalized through Decree Number 964/KPTS/Disnakertrans/2025, which specifies the UMSP for nine distinct business sectors across the province.
Breaking down the sectoral wages, the agricultural, forestry, and fisheries sectors will see a minimum wage of Rp 4,116,123. Workers in the mining and quarrying sector are set to receive Rp 4,167,115, while those in the manufacturing industry will earn Rp 4,114,298.
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Further details reveal that the sector for electricity, gas, steam or hot water, and cold air supply will have a minimum wage of Rp 4,143,870. The construction sector’s minimum wage is set at Rp 4,130,071, and for wholesale and retail trade, including the repair and maintenance of cars and motorcycles, the wage will be Rp 4,110,356.
Rounding out the sectoral breakdown, the transportation and warehousing sector’s minimum wage is established at Rp 4,147,400. The information and communication sector follows with Rp 4,104,440. Lastly, the sector encompassing rental and leasing activities without option to purchase, employment services, travel agencies, and other business support activities will have a minimum wage of Rp 4,074,869.
It is important to note that these newly established UMP and UMSP rates are specifically applicable to employees or laborers with less than one year of service at their respective companies. Governor Deru also issued a stern warning, stating, “For companies that are already providing wages higher than the newly set UMP 2026, it is strictly forbidden to reduce or lower those wages.”
Elaborating on the decision-making process, Cecep Wahyudin, a member of the South Sumatra Wage Council, confirmed that the increase in the Provincial Minimum Wage was the result of extensive discussions and unanimous agreement among all stakeholders within the council. This included representatives from local government, employers, academics, and labor unions. The calculation for the Sumsel UMP 2026, which arrived at Rp 3,942,963, utilized an alpha value of 0.7, in full compliance with Government Regulation Number 49 of 2025.
“The South Sumatra Wage Council’s recommendation for a 7.10% wage increase has received the governor’s approval,” Wahyudin affirmed. He further highlighted the tangible impact of this decision, noting, “With this increase, the UMP Sumsel 2026 is Rp 261,391 higher than the previous year’s minimum wage.”
Summary
The Provincial Government of South Sumatra has officially increased the Provincial Minimum Wage (UMP) for 2026 by a notable 7.10%. This adjustment sets the new UMP at Rp 3,942,963, formalized through Governor’s Decree Number 963/KPTS/Disnakertrans/2025. The decision followed extensive discussions and unanimous agreement among stakeholders in the Sumsel Wage Council, calculated using an alpha value of 0.7 in compliance with Government Regulation Number 49 of 2025.
In addition to the UMP, the Provincial Sectoral Minimum Wage (UMSP) was also established for nine distinct business sectors, with amounts generally exceeding Rp 4 million. These new UMP and UMSP rates are specifically applicable to employees with less than one year of service. Governor Deru emphasized that companies currently paying higher wages are strictly forbidden from reducing them.
