Bali DPRD studies different minimum wage rules for foreign and local investors

Denpasar — On 15 September 2026, members of Bali’s Regional Legislative Council (DPRD) proposed differentiating the provincial minimum wage for companies with foreign investment and those with domestic investment as part of ongoing talks on the 2027 wage adjustment.

The proposal emerged during a coordination meeting of Commission II of the DPRD with business associations and other stakeholders in Denpasar, where lawmakers discussed planned changes to the provincial minimum wage and a separate minimum wage for the tourism sector in 2027.

Commission II chair Agung Bagus Pratiksa Linggih, known as Ajus, said he had asked employer representatives and the provincial wage council to consider separate minimum wage treatment for foreign-invested companies (known in Indonesia as PMA, or foreign capital investment) and domestically invested firms (PMDN, or domestic capital investment). According to Detik Bali, he argued that foreign investment currently accounts for around 70 percent of total investment in Bali and that different wage rules could help local investors avoid direct competition with larger foreign-backed businesses.

Ajus told local media that foreign investors should focus on sectors that cannot yet be filled by local businesses, while contributing more to worker welfare. He said separating the wage floor for PMA and PMDN could make it easier for domestic firms to operate while still ensuring that workers in foreign-invested companies enjoy stronger protections and higher pay in line with their employers’ greater capacity.

The meeting also highlighted concern among employers and lawmakers that Bali’s minimum wage is already relatively high compared with some neighbouring provinces. In coverage of the same 15 September meeting, NusaBali reported that Commission II members warned that sharp increases could turn Bali into a magnet for workers from surrounding regions, potentially intensifying competition for local jobseekers.

Commission II legislators and business groups at the meeting broadly agreed that the provincial minimum wage for 2027 needs to rise but called for a measured increase. They said any change should take into account the capacity of businesses to pay, the purchasing power of residents and the need to safeguard employment.

Detik Bali reported that the DPRD plans to follow up the initial discussion with a joint meeting involving several council commissions and stakeholders to examine the scale of the 2027 minimum wage increase and the technical details of any differentiated scheme for foreign and domestic investors. The follow-up discussions are expected to involve the provincial government, the wage council, employer associations and worker representatives before any formal recommendation is made.

Separate reporting by Balipost and NusaBali has noted that the provincial government has already signalled that both the provincial and district/city minimum wages in Bali will rise in 2027, with the wage council still calculating the exact adjustment based on economic growth and inflation.

No final decision has yet been announced on the size of the increase or on whether Bali will formally adopt different minimum wage rules for foreign and domestic investors, but the DPRD’s proposal indicates growing pressure to tailor wage policy to the island’s investment structure and cost-of-living pressures.

Sources

• Detik Bali
• NusaBali
• Balipost
• Tribun-Bali