Doing business in Indonesia offers real growth potential—but it also brings strict tax obligations. This article dispels seven common misconceptions and explains what full compliance looks like.
The minimum wage in Bali saw a 6.5% increase in 2025. This increase aligns with the national directive from President Prabowo Subianto. According to the Indonesian Ministry of Labour, no worker in Indonesia can receive less than the mandatory minimum rate of pay. Should an employer fail to comply with this regulation, the Indonesian government may apply the corresponding punishment, which can be:
Minimum Wage is the lowest amount of money a worker can earn for their work under the law. In most cases, countries follow a nation-wide minimum wage, that is, all workers in the country, no matter the region they are in, have the right to the same minimum wage. However, Indonesia’s system is set depending on the province, district, and the sector/industry. In Bali, the minimum wage varies depending on which of the nine regencies your business lies.
Levels of minimum wage are currently regulated and monitored by Government Resolution No.78/2015, which guarantees annual increases in the minimum rate, taking into account inflation and GDP rates. Then, following this data, each province and district will determine the minimum wage in their respective area.
The minimum wage is based on 40 hours of work per week and can either be:
The official minimum wage in Indonesia ranges from IDR 2,169,348 (monthly) in Central Java, to IDR 5,396,760 (monthly) in Jakarta.
As for Bali, the minimum wage for 2025 is as follows:
Regency | Minimum Wage 2023 |
Badung | IDR 3,534,339 |
Denpasar | IDR 3,298,117 |
Gianyar | IDR 3,119,080 |
Tabanan | IDR 3,102,520 |
Jembrana | IDR 2,996,561 |
Karangasem | IDR 2,996,561 |
Buleleng | IDR 2,996,561 |
Klungkung | IDR 2,996,561 |
Bangli | IDR 2,996,561 |
Consult our Payroll and HR Services for more information regarding salaries in Indonesia.
Doing business in Indonesia offers real growth potential—but it also brings strict tax obligations. This article dispels seven common misconceptions and explains what full compliance looks like.
Understand payroll entitlements and termination benefits in Indonesia, including THR, leave policies, and severance pay, to ensure full compliance.
Discover key trends shaping Bali's 2025 property market—off-plan growth, compact villas, rental shifts, and data-backed insights from REID and SAS.