APINDO Tangerang Regency Says 50 Percent of Factories Unable to Meet 2026 Minimum Wage
Friday, 09 January 2026
Tigaraksa, Banten — The Chairman of the Indonesian Employers Association (APINDO) of Tangerang Regency, Herry Rumawatine, stated that the implementation of the Sectoral Minimum Wage (UMSK) and the Regency/City Minimum Wage (UMK) has yet to be applied evenly. He said that approximately 50 percent of companies are still unable to implement wage payments at the level of the 2026 UMK.
“If it has to be forced, then let the government pay the wages. There are still 50 percent of companies whose employee salaries are below the 2026 UMK. The government should know, understand, and be aware of this situation. We also object to the 2026 UMK decision,” he said on Friday, January 9, 2026.
It is worth noting that the UMSK was enacted through Banten Governor Regulation No. 704 of 2025 on the Determination of Sectoral Minimum Wages for Regencies and Cities for 2026. The regulation was issued on December 24, 2025, in Serang.
In detail, wages for companies in Sector 1A are set at Rp5,290,110; Sector 1B at Rp5,263,540; Sector 2 at Rp5,252,909; Sector 3A at Rp5,242,278; while Sector 3B wages are determined based on bipartite agreements between workers and employers.
Sector A covers agriculture, forestry, and fisheries. Sector B includes energy and trade groups, mining, and other quarrying activities. Sector C comprises the food and beverage industry group. Sector D includes textiles, apparel, and leather industries. Sector E consists of chemical, rubber, plastic, and chemical-based goods industries. Sector F covers manufacturing industries, including non-metallic mineral products such as cement. Sector G includes wood, paper, and other processing industries. Meanwhile, Sector H covers electricity, gas, steam/hot water, and air conditioning supply.
Meanwhile, the 2026 UMK for Tangerang Regency is set at Rp5,210,377, representing a 6.31 percent increase from 2025, when it stood at Rp4,901,117.
“The government should understand the real conditions on the ground. Many factories are relocating, others are shutting down, and unemployment is widespread. The minimum wage is not about the interest of a single party; it has many implications, including higher BPJS contributions, increased overtime costs, higher income tax, and so on. Meanwhile, company productivity is already less competitive compared to similar factories in areas with lower wages than Tangerang Regency. The government should take this into account,” he said.
Source: bantenekspres.co.id
