JAKARTA - Indonesia's labor ministry praised Jakarta's new worker welfare package on Wednesday, calling it a model for other regions.
Deputy Labor Minister Afriansyah Noor recently met with Governor Pramono Anung in Jakarta on January 7 and said other provinces should follow the capital's lead in supporting workers beyond just setting minimum wages.
"The Ministry of Manpower hopes that other regions will follow the Jakarta Provincial Government's policy of setting the minimum wage (UMP) and providing various benefits for workers and their families, such as subsidies for transportation, food, education, and health, as outlined in the governor's decree," said Noor.
Jakarta's package, announced on December 24, includes free public transportation for workers, food subsidies, free health checkups, and subsidized water through PAM Jaya. The package came alongside the announcement that Jakarta's 2026 minimum wage will be Rp 5.73 million, a 6.17 percent increase.
The subsidies target workers who help make Jakarta the world's most populous metropolitan area. A November 2025 UN report found Greater Jakarta now has 42 million people, overtaking Tokyo. Most of that population boom comes from workers commuting in from satellite cities like Bogor, Depok, Tangerang, and Bekasi.
But despite its massive workforce, Jakarta's economy has been sluggish throughout 2025. The capital grew 4.95 percent in the first quarter, jumped to 5.18 percent in the second quarter, then fell back to 4.96 percent in the third quarter.
On the other hand, North Maluku was Indonesia’s one of fastest-growing economies. The province, which is located in the eastern part of Indonesia, recorded 39.10 percent growth in the third quarter of 2025, driven largely by mining activities. That's nearly eight times faster than Jakarta's growth rate in the same period.

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