The State News Agency ANTARA reports that the United Bali Workers Alliance (Aliansi Semeton Pekerja Bali Bersatu) is proposing a 40.2% increase in the 2027 Provincial Minimum Wage (UMP) from the current Rp 3,207,459 to Rp 4.5 million per month.
Speaking before Commission IV of the Bali Regional House of Representatives (DPRD) in Denpasar on Monday, 28 September 2026, the United Bali Workers Alliance told legislators that the substantial hike in the UMP takes into consideration and more closely approaches the “Decent Living Standard” (KHL)—a benchmark for basic living costs – now calculated at Rp 5.2 million per month.
Ida Dewa Made Rai Budi Darsana, Secretary of the Independent Workers Union Federation (FSPM) for Bali, said the Rp 4.5 million targeted minimum wage figure more closely reflects workers’ actual living needs.
“We hope this serves as momentum to raise Bali’s UMP, bringing it at least closer to the value of a decent living standard,” he said. Darsana added that workers in Bali must also bear social and customary community financial obligations that should be taken into account when calculating the cost of living and any wage increase.
Moreover, the Alliance of Bali Union Workers is also urging that an even higher Provincial Minimum Wage (UMP) should be set for a Provincial Sectoral Minimum Wage (UMSP) for business sectors deemed to have greater economic capacity. “The Bali government should encourage this, particularly for specific sectors that are indeed capable of paying higher wages,” said Dewa Rai.
Bali’s 2026 UMP was set at Rp3,207,459 per month, while the 2026 UMSP (Provincial Sectoral Minimum Wage) for the tourism sector—specifically covering accommodation and food and beverage services, including star-rated hotels—was set at Rp 3,267,693 per month. I Wayan Madra, Chairman of the Bali Chapter of the All-Indonesia Workers Union Confederation (KSPSI), stated that the union is also advocating that the “cost of living” survey serve as a reference point in calculating minimum wage formulation.
“What we want is for the provincial minimum wage to be based, at the very least, on the results of the surveys that have been conducted,” Madra said.
According to Madra, a considerable gap exists between Bali’s 2026 provincial minimum wage (UMP) of Rp 3,207,459 and the Decent Living Needs (KHL) survey results, which target a wage level of around Rp 5.2 million per month.
The union also requested that the determination of the 2027 provincial minimum wage take into account Constitutional Court Ruling Number 168/PUU-XXI/2023 regarding labor regulations, specifically the aspect of decent living needs within wage policy.
I Nyoman Suwirta, Chairman of Commission IV of the Bali Regional House of Representatives (DPRD), stated that the alliance of unions’ aspirations would serve as input to be conveyed to the Governor of Bali. Suwirta, however, noted that the minimum wage cannot be raised at will, as its determination must follow established formulas and indicators stipulated in Provincial regulations.
Explaining further, Suwirta said: “The minimum wage cannot just be raised arbitrarily because there is a standardized formula and set of indicators; therefore, what we are pushing for is the courage to provide input so that the formula or the minimum wage itself can be improved.”
He added that the Bali DPRD consistently advocates for wage policies that move closer to meeting workers’ decent living needs. “We want to see how the minimum wage can be brought closer to the cost of a decent standard of living, so that our workers can truly enjoy a state of well-being,” he added.
Suwirta stated that the minimum wage should serve as a floor—the absolute lowest limit—rather than automatically becoming the standard wage for all companies. More lucrative sectors of the economy that can afford higher UMP levels should be required to pay higher minimum wages.
Commission IV of the Bali DPRD also announced plans to visit companies soon to observe how provincial wage regulations are implemented. “We will visit companies—particularly regarding labor and wages—to determine if there are any companies that continue to use the minimum wage as their pay rate despite having the financial capacity to pay more,” said Suwitra.
Related Links
Bali’s Provincial Minimum Wage (UMP) Under Scrutiny; Governor Questions Those Seeking Political Attention.
Bali Workers Seeking 2027 Minimum Wage That Permits Decent Standard of Life
Is Bali’s Minimum Wage Too Low? Can Bali Sustain Livable Rp 5.2 Million Minimum Wage?
Bali: Minimum Wage Levels for 2026
12% VAT – A Threat to Bali Tourism?
Stay Informed on Bali Tourism-Related News: Subscribe to Bali Update
