The Cost Of Living In Indonesia For Expats

With its vibrant culture, stunning landscapes and welcoming communities, Indonesia is an increasingly popular destination for expats. As the world’s largest archipelago, Indonesia offers a diverse and enriching experience, whether you choose to live in the bustling capital city of Jakarta, the cultural heart of Yogyakarta or the serene paradise of Bali.

In this guide, we’ll delve into the various aspects of the cost of living in Indonesia. From housing and utilities to groceries, transportation and healthcare, we’ll provide you with all the information you need to budget effectively and make the most of your new home. Let’s take a closer look at the cost of living in Indonesia as an expat.

In this article

• Cost of living in Indonesia
• Effects of the cost of living crisis in Indonesia
• Cost of renting and buying property in Indonesia
• Cost of education in Indonesia
• Cost of transport in Indonesia
• Cost of healthcare in Indonesia
• How to budget as an expat in Indonesia

A drone picture of the waterfront in Jakarta / GETTY IMAGES

Cost of living in Indonesia

Expats in Indonesia can enjoy a relatively low cost of living. That’s not only compared to Western countries, but even to many other countries in South East Asia. As of 2024, the cost of living in Indonesia is around 57% lower than in the United Kingdom and 62% lower than in the United States.

This said, your living costs in Indonesia will vary depending on your lifestyle and location. To give you an idea, here’s a small snapshot of the cost of living in Indonesia’s most popular expat destinations, not including rent:

Location

Average living costs – single person/month (US$)*

Average living costs – family for 4/month (US$)*

Jakarta

$501.80

$1,710.00

Bali

$562.30

$1,993.90

Surabaya

$438.60

$1,481.80

Indonesia – average

$441.50

$1,514.50

*As of June 2024, Numbeo

Bali is the most expensive place to live in Indonesia. It’s even more expensive than Malaysia’s capital Kuala Lumpur, but still nowhere near the cost of living in South East Asia’s most expensive city, Singapore. 

Want a better sense of how to budget when living in Bali?

Take a look at our full guide to the cost of living in Bali

The good news for expats living in Indonesia, is that average salaries for skilled roles are relatively competitive, making it easy to enjoy a high standard of living wherever you choose to settle. While the average salary for people in Indonesia sits around US$6,300/£5,000, the median income for engineers is approximately US$23,000/£18,100 per year, while skilled tech workers can expect around US$51,000/£40,100 per year. 

To help gauge how far your salary will stretch, here’s a look at the cost of basic groceries in Indonesia:

Amenity

Average cost in Indonesia (US$)*

Milk (1 gallon)

$4.68

Loaf of bread

$1.00

Rice (1lb)

$0.38

12 eggs

$1.55

Local cheese (1lb)

$3.34

Chicken fillets (1lb)

$1.43

1.5 litre bottle of water

$0.42

Bottle of wine

$18.28

Domestic beer

$2.08

Imported beer

$2.93

*As of June 2024, Numbeo

When it comes to eating out, you can also expect to benefit from the very low cost of living in Indonesia:

Restaurants

Average cost in Indonesia (US$)*

Three-course meal for 2 at a restaurant

$15.23

Meal at a fast food restaurant

$3.05

Domestic beer (1 pint, draught)

$2.44

Cappuccino

$1.94

Small bottle of water

$0.31

*As of June 2024, Numbeo

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Effects of the cost of living crisis in Indonesia

Indonesia is still grappling with the effects of the global cost of living crisis, though the situation is slowly improving. The country’s inflation rate, which saw a significant spike from 2% to over 6% in early 2022, has started to stabilise, settling around 3% in the early months of 2024. However, inflation is projected to remain above 2% until at least 2028, indicating prolonged economic challenges.

Rising inflation has caused the cost of living in Indonesia to increase somewhat significantly, affecting various aspects of daily life. The costs of consumer goods, housing and transportation have all seen substantial hikes, making it increasingly difficult for many Indonesians to make ends meet. This situation is exacerbated by slow income growth, which is widening the gap between the nation’s wealthiest and poorest citizens.

The Russian-Ukrainian war has also affected Indonesia, though Indonesia has opted to remain neutral and maintain trade relations with Russia. Indonesia’s trade with Russia was worth over US$1.5 billion in 2022, however the global repercussions of the conflict have not gone unnoticed, contributing to higher costs of imported goods and fuel. 

Overall, while the cost of living crisis has undoubtedly placed a strain on Indonesia’s economy and its people, the country’s strong governmental response and relative economic resilience provide a hopeful outlook for the future. The inflation rate, while still a concern, is being managed more effectively, bouncing back faster than many other South East Asian countries.

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Cost of renting and buying property in Indonesia

Cost of renting in Indonesia

Rent in Indonesia is, on average, significantly lower than in many Western countries, making it an attractive destination for expats looking to balance affordability with quality of life. However, like most places, the cost of rent can vary considerably depending on where you choose to live. 

In Indonesia, your largest living expense will likely be rent, which could take up a substantial portion of your monthly budget.

On average, expats might spend around 20-30% of their income on rent.

However, the cost of renting in Indonesia is quite reasonable compared to many Western countries, with prices being 50-80% lower than in major cities like New York or London.

The cost of rent in Indonesia can fluctuate based on the city and the specific area within that city. For instance, Jakarta, the bustling capital, tends to have higher rental prices compared to other cities like Yogyakarta or Surabaya. Similarly, popular tourist destinations like Bali, Seminyah and Ubud tend to be more expensive.

Here are some of the maximum and minimum average monthly prices you can expect to pay to rent in Indonesia:

Location

Average rent for 1 bedroom in city centre (US$)*

Average rent for 1 bedroom outside the city centre (US$)*

Average rent for 3 bedroom in city centre (US$)*

Average rent for 3 bedroom outside the city centre (US$)*

Jakarta

$415.81

$239.37

$1,170.67

$632.77

Surabaya

$242.24

$160.29

$457.05

$307.75

Bali

$632.36

$419.66

$2,195.82

$1,415.68

Indonesia – average

$280.48

$159.54

$719.43

$409.82

*As of June 2024, Numbeo

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Cost of buying property in Indonesia

Buying property in Indonesia as an expat can be somewhat challenging due to regulations aimed at preserving land ownership for Indonesian nationals. However, it is possible with the right approach and an understanding of the local laws.

In Indonesia, foreigners are not allowed to own freehold land directly.

Instead, they can acquire property through the following options:

1. Leasehold – Expats can lease land for a period of up to 80 years, consisting of an initial 30-year lease, renewable for another 20 years and further extendable for another 30 years.
2. Right to Use (Hak Pakai) – This is a title granted to foreigners, allowing them to use land for residential purposes. It is typically valid for 25 years and can be renewed, but only up to 70 years.
3. Establishing a PMA (Foreign Investment Company) – By setting up a PMA, foreigners can own property under the company’s name. This method allows for more flexibility and control over the property.
4. Marrying an Indonesian Citizen – Expats married to Indonesian citizens can purchase property in their spouse’s name, with agreements in place to ensure mutual control over the property.

When it comes to affordability, the cost of buying property in Indonesia is low compared to many Western countries. However, prices can vary significantly depending on location and property type.

There are also several additional costs involved in buying property in Indonesia:

• Legal Fees: Typically around 1% of the property value
• Registration fees: Approximately 0.2% of the property value
• Agent Fees: Usually around 5% of the property value
• Taxes: Transfer tax is about 5% of the property value

Purchasing your own home is one of the greatest joys in life as an expat

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What are the costs of household bills in Indonesia?

Household bills are fairly reasonable across Indonesia. However, they can vary significantly depending both on your location and the energy efficiency of your dwelling. You may also need to factor in additional costs such as service charges to your building owner.

These are the average costs of bills in Indonesia (not including rent):

Utilities (monthly)

Average cost in Indonesia (US$)*

Basic utilities (electricity, heating, cooling, water, garbage) for a regular-sized apartment

$63.51

Mobile phone monthly plan with calls and 10GB+ data

$4.45

Monthly home internet bill

$25.48

*As of June 2024, Numbeo

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A traditional floating market at Lok Baintan, Indonesia / GETTY IMAGES

Cost of education in Indonesia

Indonesia is not renowned for its education system, ranking consistently low in international assessments for maths, literacy and science. While Indonesia is working to improve the quality of education through increased government spending, there remains a noticeable gap compared to other developed countries.

Many expats opt to send their children to international schools.

International schools offer a much higher standard of education compared to government run public schools, including the International Baccalaureate (IB), British, American, Australian and French systems.

The average yearly cost of sending a child to an international school in Jakarta was around US$31,000 in 2023. 

 

What is the cost of higher education in Indonesia? 

Indonesia’s higher education system is gradually improving, with some universities gaining international recognition. They also offer lots of English-taught courses, making them accessible to international students. 

Notably, these five Indonesian universities are listed in the QS World University Rankings 2025 Top 500:

• Universitas Indonesia (206)
• Gadjah Mada University (239)
• Bandung Institute of Technology (256)
• Airlangga University (308)
• IPB University (426)

The cost of university tuition in Indonesia will vary depending on the institution, the type of course you wish to study and the level of degree you pursue. As an international student, you may also be expected to pay higher fees than the ones advertised.

According to AECC Global, the average cost of university tuition fees across Indonesia may range from:

Level of education

Cost per academic year (US$)

Foundation degree, Diploma

$1,300 – $3,500

Undergraduate degree

$2,000 – $7,000

Postgraduate (Master’s) degree

$3,000 – $10,000

PhD

$3,500 – $13,500

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Cost of transport in Indonesia

Indonesia’s public transport system varies greatly depending on the city. 

Jakarta has the most developed public transport network in Indonesia, offering a combination of buses, commuter trains and the recently inaugurated MRT (Mass Rapid Transit) system, which gives commuters a reliable and efficient way to travel across the city for as little as US$0.30 a trip.

In cities like Surabaya, however, public transport is less developed, with the most common public options including buses and angkots (shared minivans).

Due to the limitations of public transport, many expats prefer using private vehicles. Motorcycles and scooters are the most common mode of private transport in Indonesia.

Here are the average costs of transport in Indonesia, including the cost of buying and running a car:

Transport type

Average cost in Indonesia (US$)*

One-way ticket (local transport)

$0.30

Monthly pass (local transport)

$9.45

Taxi starting tariff

$0.55

Taxi tariff per mile

$0.49

1 gallon of petrol

$3.11

Small family car, new

$28,450

*As of June 2024, Numbeo

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Cost of healthcare in Indonesia

Healthcare in Indonesia varies widely in terms of quality and accessibility depending on whether you opt for public or private services. Understanding the healthcare landscape is crucial for expats to ensure they receive the best care possible.

Indonesia’s public healthcare system, known as BPJS, is available to all residents, including expats with valid work permits. However, the system is often overstretched and underfunded, with an average of just 3.84 health professionals per 1,000 inhabitants as of 2024, falling short of the WHO’s threshold of 4.45. This can lead to longer wait times and limited access to specialised care.

Many expats prefer private healthcare in Indonesia due to its higher quality, better access to specialist treatments and shorter wait times. Indonesia is well stocked with private hospitals, having over 1,000 private hospitals and clinics, particularly concentrated in urban areas and popular expat destinations like Bali and Jakarta.

Private medical care does of course come at a price, with a single doctor’s appointment costing anywhere from US$80–$165, while a single night’s stay at a hospital can cost upwards of US$100–$265.

It’s therefore important to consider international health insurance when living in Indonesia. This can help not only to manage the cost of healthcare in Indonesia, it can also guarantee access to private medical facilities as and when you need them. International health insurance will not only cover routine medical expenses, but also provide for emergency situations and medical evacuations if necessary. 

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Staying on budget while living in Indonesia

Here’s how to estimate your cost of living in Indonesia and budget for your daily expenses and savings in four simple steps: 

1/ Estimate your take-home pay

The first step to setting a budget for Indonesia is to work out how much money you have coming in. This will be your salary minus any taxes that apply. 

In Indonesia, income tax rates for expatriates range from 5% to 30%, depending on your income level and residency status. If you don’t have residency, you will pay a flat rate of 20%. 

Ensure you are clear on the specific tax implications for your salary to help you work out your take-home pay. If your country has a double taxation agreement with Indonesia, you may be exempt from local income tax so long as you continue to pay tax in your home country.

2/ Work out the cost of rent/mortgage payments

Housing will likely be one of your largest expenses. Rental prices can vary significantly depending on the city and type of accommodation. In major cities like Jakarta and Bali, you might spend a substantial portion of your income on rent, possibly around 20–30% of your monthly earnings. Make sure to account for this in your budget.

Remember, if you’ve yet to relocate, you’ll also need to budget for one-off moving costs in your first month, such as moving costs and visa fees.

3/ Calculate your monthly bills

The cost of basic utility bills in Indonesia comes to around US$63 per month for electricity, heating, cooling, water and garbage. Meanwhile, interest costs can add another US$26 per month, based on average costs in Indonesia. 

This is also the time to consider the costs of travel, mobile bills and insurance – including health insurance, which is highly recommended for anyone moving to Indonesia. 

4/ Set your monthly budget

Once you’ve worked through steps 1 to 3, you’ll be ready to subtract your monthly cost of living in Indonesia (rent and bills) from your salary, giving you a rough budget for everyday expenses like food and for saving. 

By following these steps, you can manage your finances effectively and enjoy your time in Indonesia without financial worries.

Got more questions about moving to Indonesia?

Our complete guide to living in Indonesia covers all you need to know

Insurance to help you manage the cost of living in Indonesia

William Russell has been helping expatriates like you settle into a new life overseas for over 30 years.

Our comprehensive insurance packages are specially designed to give you and your family the best possible lifestyle while living abroad. Our international health insurance ensures you can access high-quality medical care while living in Indonesia.

Speak to us today to find out more about how we could help you make the most of your new life in Indonesia.

Looking for international health insurance before your move to Indonesia?

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This article is part of our series of guides to expat life. It’s just for general information, and we don’t provide professional advice on finances or moving abroad (we’re an expat insurance provider). We update this article regularly to keep it useful as possible, but if you want to know more – please seek independent advice.