Cost of Living in Indonesia



Expatriates are often surprised at the weight their money holds in Indonesia. Here, everything is reasonably priced, especially for those wanting to experience the culture from the inside, making the country all the more an attractive choice.

While being aware of other things such as the climate and politics in a new home country is important, anyone who has just moved overseas will always find financial matters a prime concern.

The combination of a competitive salary and the relatively low cost of living in Indonesia will give you purchasing power that is likely greater than in your home country. With this great advantage, expatriates make a good living by local standards.  With a salary as an English teacher, for example, you can afford a lifestyle that is most probably not possible back home - eating out, taxis, spa therapies, Bali weekends, etc. On average, English teachers are paid 7,000RP to 10,000RP per hour.

If you choose to live in an apartment in Indonesia, these are generally serviced, with memberships to affiliate recreational facilities such as sports clubs coming as part of the package - a set up very common in Jakarta. Many expats in Indonesia share a house or apartment with other expats to split the cost. If you eat local food from local restaurants or food stalls and shop in local markets, further savings are possible.

Many employers provide accommodation as part of an employment package, especially for expatriates who are teaching English. For those responsible for their own accommodation, a furnished two- bedroom apartment in a hotel complex starts from about $18,720a month. Apartments in Jakarta are generally cheaper than in other cities while unfurnished houses are the most practical choice for long-term expats.

Generally, an income of $1,238 is sufficient for a family to live comfortably on. An expatriate who wants to lower his cost of living can do so by settling in the rural areas. However, the reality is that foreigners in the country will likely earn much more than the minimum amount for comfort. This is, in fact, one of the reasons why Indonesia has become very enticing for foreign nationals.

Taxation rates are stable at 30% for company income tax and 35% for individual income tax. Additional taxes such as VAT may also be charged for particular items or services. Although taxes may seem hefty for certain goods and services, everything is evened out by the comparably low cost of living in the country.

Southeast Asia's largest economy is found in Indonesia where one of the world's developing market economies shows great promise for expats from around the world. As a member of the G-20 major economies, Indonesia is certainly attractive for anyone who seeks a life of economic wellness and stability.



Expat Services in Indonesia