10 Facts about Cost of Living in Indonesia You Must Know
If you decide live in Indonesia, you have to consider the cost of living. Cost of living means the average cost you have to spend for foods, sanitary, houses, and etc. in daily. And of course the perspective of expensive or cheap depends on each person. That is relative. Some survey may say that cost of living in Indonesia is cheap, but you ne to see these facts for your consideration of budgeting to live in Indonesia.
- Indonesia ranks 56th lowest cost of living in the world in 2017
Indonesia is ranked 56th out of 112 countries. This position shows that Indonesia has a living cost that is not too cheap and not too expensive. An economic survey institute ranks 112 countries in terms of living costs compared to New York City, USA. This city was chosen because at this time the US dollar exchange rate was strong compared to other countries’ currencies. New York is also famous for its expensive living costs.
- You must get at least IDR 34 million per month to get the same living standard in New york
The rental price index is rated 78.52% lower than New York City. While the price of daily necessities is lower 49.22%. But unfortunately, purchasing power in Jakarta was lower by 72.11% of New York City. According to data, you have to get IDR 34 million per month so you can enjoy the same comfort as living standards for people in New York City.
- Solo is the city with the lowest cost living in Indonesia
Solo is a city with the lowest cost of living in Indonesia. The cost of living in an area headed by Joko Widodo has turned out to be cheaper than Yogyakarta. The students who have experienced living here may already understand that the cost of just eating rice, vegetables and fried foods only requires approximately IDR 7000.
For a residence or boarding house, one year only needs IDR 2-3 million. The transportation there, you can use Solo Trans at a rate of IDR 3000 to 15000. So, even with IDR 500,000 to 700,000, we can live quietly in this city.
- Jakarta is the city with most expensive cost living in Indonesia
It is no secret that Jakarta is one of the regions in Indonesia that has expensive living costs every month. We have to spend up to Rp. 15,000 for one meal in Jakarta, not to mention the cost of housing that seems to be unable to negotiate.
The cost of boarding in the Jakarta area can be twice or even three times higher than Jogja. In addition, because it already bears the title of a big city, the price of goods needed there is also increasingly expensive. That’s why it costs more than Rp. 4 million if you want to live happily in the capital city.
- The cost of living is various because the geographical condition
Indonesia is an archipelagic country, the uneven development since the first time resulted in the government having difficulty equating prices. This is because of the issue of shipping costs which inevitably go by sea or air and certainly cannot be too much like in other countries. In other countries, it can use a road train or a triller that makes prices cheaper and shipping more efficient because land lines can fit a lot and intensely every day. While in Indonesia, shipping goods and expeditions pass heavy terrain.
- The cost of living changes due to inflation
Inflation is a move upward from the price level. Basically this is related to price, this can also be called how much money (rupiah) to get the item. Inflation is the main thing that causes an increase in the cost of living in Indonesia. Of course there are many factors that influence inflation in Indonesia. Therefore, the cost of living in Indonesia can never be compared to the price of 5 years ago, or maybe 10 years ago.
- You need at least IDR 50,000 for complete food cost in a day
If you plan to stay in Indonesia for a long term, you have to make a budget planning first. Average cost for foods in Indonesia is IDR 50,000 a day. Although the food cost could be different from one to another person, you have to consider live economically in Indonesia. Avoid eat in an expensive restaurant. You can eat in a really cheap food stall called “warteg”. Here, you can eat a portion of rice, vegetables, and side dish with average IDR 17.000 only. If you want to a little bit luxurious food, you can eat in restaurants with much higher cost.
- 10% people in Indonesia live with under standard of cost living
The minimum standard cost of living in Indonesia is 500,000 in a month. Unfortunately, there are still 10% of people can’t afford their cost of living. They who can’t fulfill their cost of living categorized as poor people in Indonesia. Imagine that you can live with IDR 500,000 in a month! However, make sure you don’t spend it in Jakarta.
The good news is, the rate of poor people in Indonesia has decreased year by year. If you live in Indonesia, can you spend IDR 500,000 in a month? That is why, the data from BPS (Central Bureau of Statistics) is said to be not valid. It is since the cost living in Indonesia is different for each region.
- Nearly 30% Indonesians couldn’t fit their cost living to their salary
Most of 30% Indonesians don’t understand how to manage their income. Here many people like to shop and spend money after getting salary without thinking to save money. Many people of Indonesia are consumptive. They like to buy the things once in a time. In the end of month, they will live super economically since they have spent money in early month. That is why, if you go to supermarket in Indonesia, it will be more full during early month. It is because most of Indonesians get salary in the early month. While in the end of month, the supermarket and food stall will be quiet.
- You have to prepare at least IDR 100,000,000 if you want to buy a small house in Indonesia
Cost of living couldn’t be separated from the property and housing. Well, in Indonesia, housing and property might not be as expensive as in USA or Singapore. Again, it depends on your preference. If you live in a small town, it will be difficult for you to rent an apartment. As the change, you can rent a small house with the budget IDR 5,000,000 a year.
However, if you want to rent a house in big city like Jakarta or Bandung, it could be much higher. While if you want to buy a small house in Indonesia you have to prepare at least IDR 100,000,000 for a small house in small town. While in Jakarta, you can get it with much higher price.
Those are the facts of cost living in Indonesia. Those points could not be a strict standard, maybe in next several years the cost of living in Indonesia will be lower or higher. This article is made in the end 2018. You can search the list of prices in Indonesia in world economic sites for more accurate.