Indonesia unveils requirements for worker wage subsidy program

Jakarta (ANTARA) - The Ministry of Manpower said the Wage Subsidy Assistance (BSU) is a government program aimed at helping workers maintain economic resilience and purchasing power.
"We want this assistance to be distributed accurately to help maintain the economic resilience and purchasing power of Indonesian workers and keep them stable," Director General of Industrial Relations Development and Labor Social Security at the ministry, Indah Anggoro Putri, said in a statement here on Sunday.
She explained the eligibility requirements for the 2026 BSU program. Eligible workers who are officially designated as recipients will receive Rp300,000 (about US$16.57) per month for three months, amounting to a total of Rp900,000 (about US$49.71), paid in a lump sum.
The requirements are stipulated in Minister of Manpower Regulation No. 16 of 2026, the Second Amendment to Minister of Manpower Regulation No. 10 of 2022 on Guidelines for Providing Government Assistance in the Form of Wage Subsidies for Workers, as well as its implementing technical guidelines.
Putri said that eligible recipients must be Indonesian citizens holding a Population Identification Number (NIK) and must have been active participants in the Workers Social Security Agency (BPJS Ketenagakerjaan) as of August 2026.
In addition, workers must earn a monthly salary of no more than Rp3.5 million (about US$193.34).
In areas where the Regency/Municipal Minimum Wage (UMK) exceeds Rp3.5 million (about US$193.34), the salary threshold will follow the applicable local minimum wage, rounded up to the nearest full Rp100,000 (about US$5.52). In areas without a Regency/Municipal Minimum Wage, the threshold will be based on the Provincial Minimum Wage (UMP), subject to the same rounding rule.
The salary used to determine eligibility is the latest amount reported by employers to BPJS Ketenagakerjaan and recorded in the agency's membership database. It includes basic salary and fixed allowances.
The BSU program is not available to workers who are civil servants (ASN), active members of the Indonesian Military (TNI), or active members of the National Police (Polri).
Meanwhile, workers who are not receiving the Family Hope Program (PKH) during the current fiscal year before the BSU distribution will be given priority.
Further information about the 2026 BSU program is available on the Ministry of Manpower's official website at https://bsu.kemnaker.go.id or through the ministry's service center at 1500 630.
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Translator: Arnidhya Nur Zhafira, Katriana
Editor: M Razi Rahman
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