BALINEWSID.COM, DENPASAR — The Bali Provincial Government has begun reviewing plans to implement the Regency/City Sectoral Minimum Wage (UMSK), which is being considered for implementation starting in 2027.

The review is being conducted by the Bali Regional Research and Innovation Agency (BRIDA) in collaboration with a number of experts. The government says the policy must take into account the capacity of businesses in each sector to ensure that higher wages do not place excessive pressure on small businesses.

Bali Governor Wayan Koster said the amount of the UMSK has yet to be determined as calculations and discussions are still underway.

“Calculate it first. We also have to be careful,” Koster said after attending a Bali DPRD plenary session on Monday (September 7, 2026).

According to Koster, Bali’s economic structure, which relies heavily on tourism, will be one of the main considerations in formulating the sectoral wage policy.

“Bali is dominated by tourism. More than 60 percent of its economy comes from tourism,” he said.

Koster said applying the same minimum wage to all business sectors could create problems because different sectors have different financial capacities. The tourism industry, he noted, generally has a greater ability to absorb higher labor costs than micro, small and medium enterprises (MSMEs).

“If we use the provincial minimum wage and apply it equally to all sectors, tourism may be able to handle it. But it would be difficult for MSMEs. Small food stalls, for example, would struggle,” he said.

For this reason, the Bali Provincial Government is pushing for wage regulations that reflect the characteristics and economic capacity of individual sectors in each regency and city.

“What needs to be done is to improve sectoral minimum wages at the regency and city levels,” Koster said.

He identified tourism as one of the sectors requiring particular attention in the review of minimum wages. Apart from being the main driver of Bali’s economy, the tourism sector also contributes significantly to regional tax revenues.

“Because tourism businesses are the most numerous, the minimum wage in the tourism sector does need to be evaluated,” he said.

However, Koster stressed that the policy must not undermine the sustainability of MSMEs and other community-based businesses.

“We must make sure that the policy does not create an excessive burden on MSMEs or other community-based businesses,” he said.

Meanwhile, Bali Manpower and Energy and Mineral Resources Agency Head Ida Bagus Setiawan said the tourism sector is among the main focuses of the sectoral wage discussions.

“For the sectoral wage, we are pushing for the tourism sector. In the BPS classification, this is recorded as the accommodation and food-and-beverage sector. We are proposing that its minimum wage be set higher than the regency/city minimum wage or the provincial minimum wage,” Setiawan said.

He explained that the sectoral minimum wage formula would be based on the provincial or regency/city minimum wage, with additional parameters reflecting the strength and characteristics of the sector.

The formula is currently being discussed by the Bali Wage Council as the provincial government prepares the framework for the proposed UMSK implementation in 2027.