The Berau Regency Wage Council has officially approved a 6.65% increase in the 2026 Sectoral Minimum Wage (UMSK), specifically targeting the mining and plantation industries. This adjustment reflects the high economic contribution and specific labor demands of these dominant regional sectors, placing the new sectoral rate significantly above the general Regency Minimum Wage (UMK). Industry stakeholders note that this decision was reached through tripartite negotiations involving the government, labor unions, and employers to ensure that wage scales remain competitive while accounting for inflationary pressures and the robust productivity of Berau’s natural resource sectors.
For member companies and investors within the coal and palm oil industries, this 2026 wage hike necessitates immediate fiscal planning to accommodate increased labor expenditures. The regional government emphasizes that compliance is vital for maintaining industrial harmony and social stability across the regency. As these new rates are set to take effect on January 1, 2026, the association encourages all affected business entities to align their payroll structures with the updated regulations, fostering a sustainable investment climate that balances worker welfare with operational viability in East Kalimantan’s strategic industries.
