Indonesia announces wage subsidy program for Q4 2026: Rp 900,000 total for eligible workers

Indonesia's Ministry of Labor has formally issued Ministerial Regulation Number 16 of 2026, establishing the framework for the 2026 Wage Subsidy Program (Bantuan Subsidi Upah, or BSU). The regulation, signed and enacted on 28 October 2026, provides cash assistance of Rp 300,000 per month for three months (October, November, and December), totaling Rp 900,000 per recipient. The subsidy is disbursed in a single payment.

To qualify, workers must meet five core criteria: hold Indonesian citizenship with a valid national ID number; be registered as an active participant in the social security program for workers (BPJS Ketenagakerjaan) through August 2026; earn a maximum monthly salary of Rp 3.5 million or the local district minimum wage (UMK), whichever is higher; have their most recent reported salary recorded with BPJS Ketenagakerjaan; and not be a civil servant, military officer, or police officer. Workers earning above Rp 3.5 million in regions with higher UMK thresholds may qualify if their salary does not exceed the adjusted regional wage ceiling. Additionally, workers already receiving the Family Hope Program (PKH) in the preceding period are not prioritized for BSU.

Minister of Labor Yassierli characterized the subsidy as an effort to maintain worker purchasing power and support economic stability. The regulation states that individuals who later prove ineligible must return any funds received to the state treasury. The government has allocated approximately Rp 11.97 trillion for the program, targeting 13.30 million recipients.

Workers can verify eligibility through the official government portal at bsu.kemnaker.go.id. Union representatives have noted that while the subsidy provides some relief for lower-income workers, the monthly amount of Rp 300,000 addresses only a portion of current cost-of-living pressures, as Indonesia's inflation reached 3.28 percent annually as of September 2026, driven partly by rising food and commodity prices.