Living in a foreign country can be challenging, but one of the easiest ways to manage is to know how much your salary will be worth locally. The cost of living can vary depending on the city you live, the size of your family, and how much money you make. To find out more about the cost of living in Indonesia, take a look at this article for some insight. We will start with the history of Indonesia.
History of Indonesia
Indonesia is a Southeast Asian country located between the Indian and Pacific oceans. It is the world’s largest island country, with more than 17,000 islands. Indonesia is home to some of the world’s most active volcanoes and is also the site of the largest Buddhist temple in the world.
The first people to inhabit Indonesia were Austronesian tribes who arrived around 2,000 BCE. The Austronesian peoples were followed by the Dutch in the 16th century, who colonized Indonesia and made it a part of the Dutch East Indies. Indonesia gained its independence from the Netherlands in 1945, after World War II.
Since independence, Indonesia has been governed by a series of autocratic rulers. In 1998, following riots and protests, President Suharto was forced to step down after 32 years in power. Since then, Indonesia has seen several democratically-elected governments.
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Fact About Indonesia
- Indonesia is the fourth most populous country in the world with over 261 million people.
- It is the largest Muslim-majority country in the world, with over 225 million Muslims.
- Indonesia is a member of the G20 and the World Trade Organization (WTO).
- The official language of Indonesia is Bahasa Indonesia, which is spoken by over 140 million people.
- Indonesian cuisine is often spicy and features a variety of rice and noodle dishes.
- The national airline of Indonesia is Garuda Indonesia, which flies to over 60 domestic and international destinations.
- The capital city of Indonesia is Jakarta, which is also the largest city in the country with over 10 million people.
- The currency of Indonesia is the Indonesian rupiah (IDR).
Benefits of Living in Indonesia
Low Cost of Living: You can live comfortably in Indonesia on a budget of $1,000 per month. This includes rent, food, transportation, and utilities.
Warm Weather: Indonesia is located in the tropics, so the weather is warm year-round. This is a great climate for those who don’t like cold winters.
Friendly People: Indonesians are known for being warm and welcoming to foreigners. This makes it easy to make friends and feel at home in your new country.
Rich Culture: Indonesia is home to many different cultures, languages, and religions. This diversity makes for a fascinating and enriching experience.
Beautiful Scenery: From beaches to mountains to rainforests, Indonesia has it all. There’s no shortage of beautiful places to explore in this country.
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Indonesia’s Gross Domestic Product
Indonesia’s Gross Domestic Product (GDP) was US$934.3 billion in 2017, making it the 16th largest economy in the world. Indonesia’s GDP per capita was US$3,827 in 2017, which ranks it 109th in the world. Indonesia has a mixed economy, with a variety of private and state-owned businesses. The country is rich in natural resources, including oil, gas, coal, tin, copper, gold, and nickel.
The Indonesian economy has been growing rapidly in recent years, with an average annual growth rate of 5.6% between 2010 and 2017. This growth has been driven by strong domestic consumption, as well as increased investment and exports. Indonesia’s main export markets are China, Japan, the United States, and India.
Despite this strong economic growth, Indonesia still faces many challenges. Poverty remains a significant problem, with around 28 million people living below the poverty line. Inequality is also high, with the top 20% of earners accounting for nearly 60% of total income. Infrastructure is another major issue facing Indonesia – only around 40% of the population has access to electricity, and just over half have access to safe drinking water.
Different Costs of Living in Indonesia
Cost of Feeding
The cost of food in Indonesia is relatively inexpensive, especially when compared to Western countries. The average person can expect to spend around $2-$3 per meal, which is quite reasonable. However, if you are looking to eat at more upscale restaurants or purchase imported foods, the prices will be higher.
To give you an idea of what typical groceries might cost in Indonesia, here is a list of common items and their approximate prices:
- 1 Kilogram (2.2 pounds) of rice: $0.50
- 1 liter (0.26 gallons) of milk: $1.00
- 12 eggs: $1.00
- 1 kilogram (2.2 pounds) of chicken: $3.00
- 1can of Coca-Cola: $0.50
Cost of Transportation
Public transportation in Indonesia is relatively cheap. A one-way ticket on the Jakarta MRT costs about IDR 3,500 (USD 0.25), while a one-way ticket on the TransJakarta bus rapid transit system costs around IDR 2,500 (USD 0.18). If you’re planning to use public transport regularly, it might be worth getting a commuter pass, which gives you discounts on fares. For example, a monthly Jakarta MRT pass costs IDR 300,000 (USD 21), but with the discount, it’s only IDR 216,000 (USD 15).
Taxis are also widely available in Indonesia and are generally reasonably priced. Flagfall starts at around IDR 6,000 (USD 0.42), and then you’ll pay an additional IDR 3,500 per kilometer (USD 0.25). There are also metered motorbike taxis called ojek, which can be useful for short distances or if traffic is bad.
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Cost of Insurance
The cost of insurance in Indonesia is relatively low when compared to other countries. This is due, in part, to the fact that the Indonesian government subsidizes a portion of the cost of health insurance. For example, a basic health insurance policy might cost $100 per year, but the government subsidy would reduce that amount to $50.
There are different types of insurance available in Indonesia, including health, life, and vehicle insurance. The cost of each type of insurance will vary depending on the coverage you choose and the insurer you select. However, as a general rule, the cost of insurance in Indonesia is lower than it is in other countries.
Cost of Accommodation
The cost of accommodation in Indonesia varies depending on the type of accommodation you are looking for. For instance, a basic hotel room can cost as little as $15 per night, while a more luxurious hotel room can cost upwards of $100 per night.
If you are looking for something more long-term, then you may want to consider renting an apartment or house. Prices for apartments and houses can vary greatly depending on the location and size of the property. However, you can expect to pay somewhere in the region of $300-$700 per month for a basic apartment or house
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Conclusion
The cost of living in Indonesia is relatively low, especially when compared to other countries in Southeast Asia. This makes it an attractive destination for budget travelers and digital nomads alike. With a little bit of planning, you can easily find ways to save money and enjoy all that Indonesia has to offer without breaking the bank.