Cost of Living in Indonesia

When it comes to the cost of living in Indonesia, you’ll find that it’s generally easier on the wallet than in many Western countries.

Working as an expat in Indonesia for a large organisation often comes with perks, like an international salary and extensive compensation covering basic expenses like housing, schooling, and even transport. Notably, the cost of living, even in Jakarta, is relatively low, allowing you to enjoy a more luxurious lifestyle than you would in other popular expat destinations.

Cost of accommodation in Indonesia

The cost of accommodation in Indonesia runs the gamut depending on where you lay your hat. Foreigners still cannot own freehold property, but long-term usage rights (known as Hak Pakai) allow those with a valid residence permit to use land for up to 80 years. Minimum purchase prices are steep, particularly in Jakarta.

In Jakarta, the bustling capital, expats earning an international salary can typically afford luxurious apartments or houses in the most sought-after neighbourhoods. If you’re counting your pennies, don’t fret. You can still secure a simple apartment in a decent and safe area.

Venture outside Jakarta, and accommodation costs drop significantly. Cities like Surabaya and Bandung are more affordable options, and in smaller towns or villages, you can find even cheaper digs. While the standards might not match those in metropolitan areas, these places are ideal if you’re after a quieter life without the price tag.

Bear in mind that landlords in Indonesia commonly require a full year’s rent paid upfront, so budget for that lump sum when planning your move.

Renting Expat Accommodation in Indonesia

Cost of transport in Indonesia

The cost of transport in Indonesia won’t take you for a ride financially, even if you regularly hop into taxis or hire your own driver. Car prices are comparable to those elsewhere, and fuel is relatively affordable. The government subsidises the most popular petrol grade, and pump prices are well below international norms.

Public transport is a bargain but comes with its own set of challenges. Older city buses and minibuses can be packed to the gills and often lack air conditioning, although TransJakarta’s bus rapid transit fleet is a notable exception.

Jakarta’s public transport network is expanding. The MRT is being extended northward, and there’s also an east-west line under construction. TransJakarta already covers an extensive network of dedicated lanes across the capital.

For convenience and comfort, ride-hailing apps like Grab and Gojek are the way to go. They’re popular, affordable, and generally reliable for daily commuting.

If you’re up for a bit of adventure, you can hop on an ojek (motorbike taxi), most conveniently booked these days through Grab or Gojek at a fixed fare. In some older neighbourhoods, you may still spot a bajaj (three-wheeled auto rickshaw), although they’ve grown scarce as ride-hailing apps have taken over. For those, you’ll want to negotiate the fare upfront; a few phrases in Bahasa Indonesia go a long way.

Transport and Driving in Indonesia

Cost of groceries and clothing in Indonesia

When it comes to the cost of groceries and clothing in Indonesia, they won’t take a big bite out of your budget as long as you avoid splurging on imported products and international brands. Local food, clothing, and personal care items are inexpensive compared to their imported counterparts, so it’s often worth giving local products a try.

Please note that prices for fresh produce can fluctuate with the seasons. During harvest times, you can bag a bargain, while off-season weather or the onset of Ramadan can send prices sharply upward. Chilli and onion prices, for instance, have been known to double within weeks.

Local street markets are a treasure trove for fresh fruits, vegetables, and traditional clothing. Shopping at these places is easy on the wallet and offers a rich cultural experience, giving you a taste of daily life in Indonesia.

Worth knowing: alcohol in Indonesia is subject to hefty import duties and excise taxes, so beer, wine, and spirits cost considerably more than in neighbouring Southeast Asian countries. If imported drinks are part of your weekly shop, expect them to take a disproportionate bite out of your budget.

Cost of entertainment and eating out in Indonesia

The cost of entertainment and eating out in Indonesia is pleasantly affordable, and there is a wealth of options to suit all tastes. It generally won’t break the bank to catch a movie, attend a theatre show, enjoy local music events, or enjoy a sumptuous meal at a local restaurant.

When it comes to dining, street food stalls are a treasure trove of delicious local delicacies at a fraction of the price you’d pay in Western restaurants. If you’re craving a taste of home, international restaurants are available, although they come with a heftier price tag.

If you enjoy nightlife, Jakarta and Bali offer a flourishing scene. Imported spirits and cocktails can rival Western prices thanks to steep alcohol taxes, but local beer is cheap, and you can still find spots that are easier on the wallet.

Cost of education in Indonesia

The cost of education in Indonesia, particularly in Jakarta, can be quite steep if you’re considering international schools. These institutions have curricula and facilities that significantly surpass those at local public schools, but they often come with a hefty price tag. Be prepared for additional charges: registration fees, capital levies, school transport, and international exam costs can add up quickly.

If international schools aren’t your cup of tea, private local schools can serve as a middle ground in terms of cost. The quality varies, so be sure to do your homework. Some outperform public schools, others don’t. Research and visit several schools to find the right fit for your child’s needs.

International Schools in Jakarta
Education and Schools in Indonesia

Cost of healthcare in Indonesia

The cost of healthcare in Indonesia can be a mixed bag, especially in Jakarta, where services are relatively expensive, and quality varies significantly. Be sure to find a reputable local hospital with reasonable rates as soon as possible.

Expats employed in Indonesia for six months or more must enrol in the national health insurance scheme (BPJS Kesehatan). Your employer will typically handle this. It covers basic public healthcare, but most expats also take out private insurance for broader hospital access and English-speaking medical staff.

Supplementary private health insurance is a wise move to cover any gaps. Make sure your policy includes medical evacuation, as complex cases are routinely transferred to Singapore. This is especially important if you plan to travel beyond Jakarta or Bali, where healthcare infrastructure thins out quickly.

Healthcare in Indonesia