RadarBali reports that Bali Governor Wayan Koster is responding cynically to those calling for substantial hikes in the Provincial Minimum Wage (UMP). Recently, House of Representatives (DPR RI) member Nyoman Parta demanded that the provincial minimum wage (UMP) be raised, as it was deemed far below the Decent Living Standard (KHL).
In response, Bali Governor Wayan Koster reminded all parties that the UMP was calculated based on a thorough analysis accepted by all parties.
The Governor believes certain parties deliberately raised the issue to grandstand and seek political attention.
Moreover, Koster argued that the concerns raised about the UMP do not reflect the conditions workers face on the ground. He cited workers in star-rated hotels, who earn significantly higher incomes. Hotel workers in Bali typically share in the monthly service charge applied to each guest’s bill.
”So, there is actually no uproar regarding this UMP. It is unclear who is driving the UMP discourse on social media; the actual situation is calm, and no one is questioning it. So, yes, perhaps someone wants to seek political attention—to create a stage—and drag me into it, even though we are already on the right track,” said Governor Koster during remarks at the Plenary Session of the Bali Regional House of Representatives (DPRD) on Monday. 21 September 2026.
Koster explained that Bali’s Provincial Minimum Wage (UMP) was calculated using a standard formula and a moderate ‘alpha’ value. Currently, the UMP increase stands at 3.42 percent, in line with the Central Government’s regulations. “After discussing the Provincial Minimum Wage (UMP) with experts from Udayana University, we adopted a moderate ‘alpha’ value. Even when the calculation is applied, that is the resulting figure,” Koster explained.
According to Koster, the UMP cannot simply be raised across the board, as it would place an undue burden on small businesses and Micro, Small, and Medium-Sized Enterprises (MSMEs). Therefore, the government is advocating for the implementation of a Sectoral Minimum Wage (UMS).
”That is why we are pushing for a Sectoral Minimum Wage. I have now tasked the Regional Development Planning Agency (Bappeda) team with reviewing this to ensure the approach is accurate, measurable, and appropriate,” he emphasized.
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