RadarBali reports that Bali’s Provincial Minimum Wage (UMP), currently set at just Rp 3.2 million, is drawing criticism from various sources.
The current minimum wage falls far below the minimum amount required to sustain a Decent Living Standard (KHL), now estimated at Rp 5.2 million. Among the parties raising concerns is the Student Executive Board of the Udayana University Faculty of Law (BEM FH UNUD), which voiced its opinion on Regency/City Minimum Wages (UMK) and the Provincial Minimum Wage (UMP) for workers in Bali, noting that current levels fall far below the requirements to sustain a decent standard of living.
I Gusti Agung Roman Kertajaya, Head of the Udayana University Faculty of Law Student Executive Board, stated that the 2026 UMK figures—ranging from Rp 3.2 million to Rp 3.79 million—do not fully reflect the living needs of workers and their families.
For 2026, the UMK was set at Rp 3,791,002.57 for Badung Regency; Rp 3,499,878.78 for Denpasar City; Rp 3,316,798.48 for Gianyar; and Rp 3,287,678.87 for Tabanan.
Meanwhile, the regencies of Bangli, Buleleng, Jembrana, Karangasem, and Klungkung apply Bali’s UMP of Rp 3,207,459.
These disparities reflect varying economic conditions across those regions.
However, the core issue lies not merely in the wage amount itself, but in the workers’ ability to meet their living needs amidst the high costs of food, housing, education, and healthcare, as well as social and cultural expenses—such as community association dues (banjar) and traditional customary activities.
”As a global tourism hub, Bali’s economic growth should be reflected not only in investment and tourism activity but also in the improved well-being of the local community,” Roman Kertajaya explained during an interview on 07 September 2026.
Meanwhile, the Student Executive Board of the UNUD Faculty of Law (BEM FH UNUD) maintains that wage policies should not be based solely on economic growth, inflation, and corporate capacity. It must also consider the actual conditions workers face in each region.
Limited wages also compel people to seek additional income through small and medium-sized side businesses, the creative economy, side jobs, and the “gig economy”—working as online drivers, couriers, and freelancers.
However, these activities also bring challenges, including unstable income, job insecurity, and limited social protection. All these issues directly affect Bali’s younger generation.
”The mismatch between the skills of high school and vocational school graduates and industry needs makes accessing decent work increasingly challenging. Therefore, workforce upskilling must go hand-in-hand with the creation of decent and protected jobs,” Roman Kertajaya added.
Against this backdrop, the Student Executive Board of the Udayana University Faculty of Law (BEM FH UNUD) has taken a critical stance regarding minimum wage disparities in the Province of Bali.
Consequently, BEM FH UNUD has condemned the disconnect between Bali’s economic growth and worker welfare—which falls far short of decent standards—and described this development model as fundamentally inequitable.
Furthermore, they urge the Bali Provincial Government and the Wage Council to consider the Decent Living Standard (KHL) as a parameter for setting the official minimum wage.
BEM FH UNUD also called on the government and business owners to establish transparent, measurable standards for company capacity, ensuring these criteria are not used as a pretext to suppress workers’ wages.
They also highlighted that high tourist visitation and hotel occupancy rates in Bali should be accompanied by improved welfare for tourism sector workers, rather than being reflected solely in economic growth figures.
”We call upon the government to actively protect the rights of Balinese workers through labor regulations that prioritize their interests, without turning a blind eye to the issue of public welfare,” they demanded.
Meanwhile, Bali Governor Wayan Koster addressed the Regency-Level Sectoral Minimum Wage (UMSK), which the Regional Research and Innovation Agency (BRIDA) is currently studying using input from numerous experts. If feasible, the new UMSK range will be implemented in 2027.
When asked about the analysis suggesting a Decent Living Standard (KHL) figure of IDR 5.2 million, Koster warned that this rate could not be implemented across the board, except in the tourism sector.
“We need to calculate this carefully, as Bali’s economy is dominated by tourism—accounting for over 60 percent. While applying a uniform minimum wage might work for tourism, it would place a heavy burden on other sectors and small local businesses (warungs),” Koster said on Monday, 07 September 2026.
Bali’s governor said he will evaluate sectoral minimum wages, specifically for the tourism industry across the province’s regencies and cities.
Because Bali’s economy is driven by tourism, this sector is the focus of minimum wage adjustments; the policy will not apply to community-based enterprises or small and medium-sized enterprises.
“It just isn’t feasible; what needs adjustment is the sectoral minimum wage (UMK) at the regency and city levels, given the revenue from tourism, hotel, and restaurant taxes. Since tourism is Bali’s dominant sector, the minimum wage there needs to be evaluated. We shouldn’t apply this to other sectors, as it would create an excessive burden,” Koster emphasized.
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