Indonesia | Generated by AI
Indonesia, officially the Republic of Indonesia, is a transcontinental country situated in Southeast Asia and Oceania, lying between the Indian and Pacific Oceans. It holds the title of the world’s largest archipelagic state, comprising over 17,000 islands, including major ones like Sumatra, Java, Sulawesi, and parts of Borneo and New Guinea.
Geographic Identity
- Location: Southeast Asia and Oceania, straddling the equator.
- Archipelago: The world’s largest, with 17,508 islands.
- Size: 14th-largest country by area, with a land area of 1,904,569 square kilometers.
- Borders: Shares land borders with Malaysia, Papua New Guinea, and East Timor. It also has maritime borders with several countries, including Singapore, the Philippines, Australia, and India.
- Topography: Diverse, ranging from plains in some areas to rugged, volcanic mountainous regions.
- Biodiversity: Possesses one of the world’s highest levels of biodiversity.
Economic Structure
Indonesia has a mixed economy with dirigiste characteristics, and it is classified as an emerging market economy and a newly industrialized country. It is the largest economy in Southeast Asia and a member of the G20.
- Key Sectors (2017 est.):
- Services: 45.4% of GDP
- Industry: 41% of GDP (including manufacturing)
- Agriculture: 13.7% of GDP
- Top Industries: Petroleum and natural gas, textiles, automotive, electrical appliances.
- Trade Partners (2021): China, United States, and Japan are the top three trade partners.
- Top Exported Goods (2021): Oil & mineral fuels, fats & oils, and iron & steel.
- Internet Economy: A significant and growing sector, reaching US$77 billion in 2022 and projected to exceed US$130 billion by 2025.
- Micro, Small, and Medium Enterprises (MSMEs): Contribute significantly to the economy, accounting for around 61.7%.
Language Proficiency
- The official national language is Bahasa Indonesia.
- Indonesia has a “Low proficiency” in English according to the EF English Proficiency Index 2024, ranking 86th out of 113 countries/regions with a score of 468.
- There are various levels of Indonesian language proficiency based on the Common European Framework of Reference for Languages (CEFR), ranging from beginner (A1) to advanced (C1/C2).
- The Indonesian Language Proficiency Test (UKBI) is used to measure competency in Bahasa Indonesia. In 2023, the national Indonesian Language Proficiency Index was reported at 88.24.
History
The Indonesian archipelago has been an important trading region for centuries, influenced by interactions with China and India. Hindu and Buddhist kingdoms flourished, followed by the arrival of Islam. European powers, particularly the Dutch, sought to control the spice trade, leading to about 350 years of Dutch colonial rule. Indonesia declared its independence after World War II and has since navigated challenges including natural disasters, corruption, and democratization, alongside significant economic development.
Advancements in Technology, IT, and AI
Indonesia is experiencing rapid digital growth, driven by increasing internet penetration and financial inclusion.
- Internet Penetration: Approached 79% in 2024, with over 180 million smartphone users.
- Fintech: Significant advancements have led to a substantial increase in financial inclusion.
- Artificial Intelligence (AI):
- Gaining momentum across public and private sectors with increasing investment in research and development.
- National AI Strategy 2020-2045 outlines the vision for AI development, focusing on collaboration between government, industry, and academia.
- Key sectors prioritized for AI development include healthcare, bureaucratic reform, research and education, food security, and mobility and smart cities.
- AI is being applied in various sectors such as fintech (fraud detection, personalized banking), e-commerce (recommendations, supply chain optimization), logistics, cybersecurity, healthcare (diagnostics, telemedicine), education (personalized learning), and agriculture (precision farming).
- Initiatives like the AI Innovation Center (PIKA) and “Collaboration to accelerate Indonesian Artificial Intelligence innovation” (KORIKA) aim to foster AI growth.
Regulatory Stance on Cryptocurrencies
Indonesia has evolved its stance on cryptocurrencies.
- Recognition as Commodity: Initially viewed with skepticism, cryptocurrencies were formally recognized as a “commodity” in 2019 under the oversight of the Commodities Futures Trading Agency (BAPPEBTI).
- Regulatory Shift to OJK (2025): As of January 10, 2025, the oversight responsibilities for digital assets, including cryptocurrencies, transitioned from BAPPEBTI to the Financial Services Authority (OJK). This shift aims to align crypto regulation with broader financial regulations.
- OJK’s Role: OJK is now responsible for all crypto-related activities, from trading to transaction settlements, and is committed to a phased approach in implementing new regulations, coordinating with BAPPEBTI and industry players.
- National Crypto Exchange: Indonesia launched its National Crypto Exchange, PT Bursa Komoditi Nusantara, in July 2023 to consolidate licensed crypto-asset trading.
- Approved Crypto Assets: BAPPEBTI regulates which cryptocurrencies can be traded, with 229 approved assets currently listed.
- Focus Areas: The regulatory focus under OJK is expected to include investor protection, anti-money laundering (AML) measures, and financial stability.
- Collaboration: OJK is collaborating with various governmental entities, including Bank Indonesia, BAPPEBTI, the Attorney General’s Office, and law enforcement agencies, to ensure transparency and combat potential misuse of cryptocurrencies.
The cost of living in Indonesia can vary significantly depending on several factors, including the city, lifestyle, and whether you are single, a couple, or a family. In general, Indonesia is considered to have a relatively affordable cost of living compared to many Western, European, and some other Southeast Asian countries.
Here’s a breakdown of the cost of living in Indonesia:
Overall Cost of Living:
- Indonesia ranks as one of the more affordable countries globally.
- The average cost of living for a single person is estimated to be around IDR 7,274,845 per month (excluding rent).
- For international students, estimated monthly costs (excluding tuition) might average around IDR 6,000,000 to IDR 10,000,000, covering basic needs like accommodation, food, and transport.
- A single individual might need around IDR 10,000,000 to IDR 20,000,000 per month for a comfortable lifestyle, depending on location and spending habits.
- A family of four may require IDR 30,000,000 to IDR 40,000,000 per month for comfortable living, including housing, food, education, and other essentials.
Cost of Living in Major Cities:
- Jakarta: Generally the most expensive city in Indonesia.
- A single person’s monthly expenses (excluding rent) could be around IDR 8,125,143.7.
- Expats might spend around IDR 20,000,000 to IDR 25,000,000 per month (approximately USD 1,350) depending on their lifestyle.
- Rent:
- 1-bedroom apartment in the city center: IDR 4,000,000 to IDR 12,000,000 per month.
- 1-bedroom apartment outside the center: IDR 3,000,000 to IDR 7,000,000 per month.
- 3-bedroom apartment in the city center: IDR 10,000,000 to IDR 45,000,000 per month.
- Food: A simple meal at an inexpensive restaurant costs around IDR 30,000.
- Bali: Can be relatively expensive, especially in tourist areas.
- A single person might need around IDR 10,428,160 per month (excluding rent) for a comfortable life.
- Rent:
- 1-bedroom apartment: IDR 3,500,000 to IDR 6,500,000 per month.
- Surabaya, Bandung, Medan: Generally have a lower cost of living compared to Jakarta and Bali.
- Rent for a 1-bedroom apartment:
- Surabaya: IDR 2,500,000 to IDR 5,000,000.
- Bandung: IDR 2,500,000 to IDR 6,000,000.
- Medan: IDR 2,000,000 to IDR 4,000,000.
- Rent for a 1-bedroom apartment:
Food Costs:
- Food in Indonesia is generally affordable, especially local cuisine.
- Street food: A meal can cost as little as IDR 15,000 to IDR 40,000 (USD 1 to 2).
- Inexpensive restaurants: A simple meal might range from IDR 15,000 to IDR 60,000.
- Mid-range restaurants: A meal for two could cost between IDR 150,000 to IDR 600,000.
- Groceries (average prices):
- Milk (1 liter): around IDR 20,000.
- Rice (1 kg): around IDR 14,000.
- Eggs (12): around IDR 25,000 - IDR 31,000.
- Bread: around IDR 16,000 - IDR 18,000 per loaf.
- Chicken (1 kg): around IDR 23,000 - IDR 25,000.
Transportation Costs:
- Public transportation is relatively inexpensive in Indonesia.
- One-way bus ticket: IDR 3,500 to IDR 10,000.
- Monthly public transport pass: IDR 120,000 to IDR 300,000 (can be higher in Jakarta).
- Taxi: Starting fare around IDR 7,000 to IDR 9,000, with per kilometer charges. Ride-hailing apps like Gojek and Grab are also popular.
- Owning a car involves costs for gasoline (around IDR 13,000 - IDR 14,000 per liter), parking, and tolls.
Utility Costs (monthly average for an 85m2 apartment):
- Basic utilities (electricity, water, cooling, heating, garbage): IDR 1,000,000 to IDR 1,500,000.
- Internet (60 Mbps or more, unlimited): IDR 300,000 to IDR 700,000.
- Mobile phone plan (with calls and 10GB+ data): IDR 32,000 to IDR 150,000.
Entertainment and Leisure:
- Movie ticket: IDR 40,000 to IDR 75,000.
- Gym membership: IDR 150,000 to IDR 1,000,000 per month.
Important Considerations:
- Location: Costs are significantly higher in major metropolitan areas like Jakarta and popular tourist destinations like Bali compared to smaller cities or rural areas.
- Lifestyle: Your spending habits and preferences will greatly influence your cost of living. Eating at international restaurants, importing goods, and living in luxury accommodations will increase expenses.
- Fluctuations: Exchange rates and inflation can affect the cost of living.
In summary, Indonesia offers a generally affordable cost of living, especially when embracing local food and transportation options and considering living outside the most expensive urban centers. However, it’s crucial to research the specific city or region you plan to live in to get a more accurate estimate.
Okay, here’s the information on the cost of living in Indonesia, with approximate conversions to USD (using an exchange rate of 1 USD ≈ 16,000 IDR - please note that this rate can fluctuate):
Overall Cost of Living (USD):
- Average cost of living for a single person (excluding rent): around $455 USD per month.
- For international students, estimated monthly costs (excluding tuition): around $375 to $625 USD.
- A single individual for a comfortable lifestyle: $625 to $1,250 USD per month.
- A family of four for comfortable living: $1,875 to $2,500 USD per month.
- Living in Indonesia could cost you from $600 USD per month up to $4,000 USD, varying based on lifestyle and family size.
- Indonesia is significantly more affordable than the USA; for one person, the average monthly cost is around $559 USD in Indonesia vs. $2,213 USD in the USA.
Cost of Living in Major Cities (USD):
- Jakarta: Generally the most expensive city.
- A single person’s monthly expenses (excluding rent): around $508 USD.
- Expats might spend around $1,250 to $1,560 USD per month depending on lifestyle.
- Rent:
- 1-bedroom apartment in the city center: $250 to $750 USD per month.
- 1-bedroom apartment outside the center: $188 to $438 USD per month.
- 3-bedroom apartment in the city center: $625 to $2,813 USD per month.
- Food: A simple meal at an inexpensive restaurant costs around $1.88 USD.
- Bali: Can be relatively expensive, especially in tourist areas.
- A single person might need around $652 USD per month (excluding rent) for a comfortable life.
- Rent:
- 1-bedroom apartment: $219 to $406 USD per month.
- Surabaya: Lower cost of living compared to Jakarta and Bali.
- Rent for a 1-bedroom apartment: $156 to $313 USD.
- Bandung: Lower cost of living compared to Jakarta and Bali.
- Rent for a 1-bedroom apartment: $156 to $375 USD.
- Medan: Lower cost of living compared to Jakarta and Bali.
- Rent for a 1-bedroom apartment: $125 to $250 USD.
Food Costs (USD):
- Street food: A meal can cost as little as $0.94 to $2.50 USD.
- Inexpensive restaurants: A simple meal might range from $0.94 to $3.75 USD.
- Mid-range restaurants: A meal for two could cost between $9.38 to $37.50 USD.
- Groceries (average prices):
- Milk (1 liter): around $1.25 USD.
- Rice (1 kg): around $0.88 USD.
- Eggs (12): around $1.56 to $1.94 USD.
- Bread: around $1 to $1.13 USD per loaf.
- Chicken (1 kg): around $1.44 to $1.56 USD.
- Local food (warungs): $2-$4 USD per meal.
- Western-style cafes: $5-$10 USD per meal.
- Groceries (local produce): $150-$300 USD/month.
Transportation Costs (USD):
- One-way bus ticket: $0.22 to $0.63 USD.
- Monthly public transport pass: $7.50 to $18.75 USD (can be higher in Jakarta).
- Taxi: Starting fare around $0.44 to $0.56 USD, with per kilometer charges.
- Gasoline: around $0.81 to $0.88 USD per liter (approximately $3.07 to $3.33 per gallon).
- Monthly local transport ticket: around $14.50 USD.
Utility Costs (monthly average for an 85m2 apartment - USD):
- Basic utilities: $63 to $94 USD.
- Internet: $18.75 to $43.75 USD.
- Mobile phone plan: $2 to $9.38 USD.
Entertainment and Leisure (USD):
- Movie ticket: $2.50 to $4.69 USD.
- Gym membership: $9.38 to $62.50 USD per month.
- Yoga classes: $8-$15 USD per session.
- Beach clubs or bars: $15-$70 USD per visit.
- Co-working spaces: $100-$300 USD/month.
Important Considerations (USD):
- Rent in city centers: Can range from $400 to $1000 USD per month for a one-bedroom apartment in Jakarta or Bali.
- Utilities for an average apartment: Can add another $100 to $200 USD to your monthly expenses.
- To live comfortably in Indonesia, a family of four might need a budget of $625 to $938 USD per month (this seems low compared to other estimates and might not include all expenses, especially in major cities).
- A more comprehensive comfortable budget for a family of four in a major city could be closer to $1,875 to $2,500 USD per month.
- A single person could live comfortably in Jakarta on an income of $1000 USD per month. Living like a local could even be possible with around $600 USD per month.
Remember that these are estimates, and the actual cost of living will depend on your individual needs and preferences, as well as the specific location you choose to live in. It’s always a good idea to do further research based on your specific circumstances.
The income of average people and IT workers in Indonesia varies significantly based on factors like experience, education, location (city vs. rural), industry, and the size and type of the company. Here’s a breakdown:
1. Average Income:
- Average Monthly Salary: The average salary in Indonesia is around IDR 6,000,000 per month, which is approximately $367 USD (using an exchange rate of 1 USD ≈ 16,000 IDR). However, different sources provide slightly varying figures, ranging from IDR 5,000,000 to IDR 7,000,000 ($312 to $437.5 USD).
- Median Monthly Income: The median monthly income is lower, around IDR 4,000,000, or approximately $244 USD. This indicates a significant income inequality, where a smaller portion of the population earns much higher salaries, pulling the average up.
- Annual Average Salary: Some sources estimate the average annual salary to be around IDR 89,903,190 (approximately $5,619 USD) or IDR 146,000,000 (approximately $9,125 USD). These figures can vary depending on the inclusion of benefits and the data sources used.
- Low Earners: Individuals in lower-paying jobs might earn around IDR 1,500,000 per month (about $91 USD).
- High Earners: Wealthier individuals can earn upwards of IDR 15,000,000 per month (about $917 USD).
- Monthly Earnings Data (Overall): According to CEIC Data, the monthly earnings in Indonesia stood at $187 USD in December 2024, compared to $190 USD in December 2023. This data is updated yearly.
2. Minimum Wage:
- Minimum wages in Indonesia are set regionally at the provincial and sometimes even city/district level.
- For 2024, provincial minimum wages varied significantly. For example:
- Jakarta (highest): IDR 5,067,381 per month (around $317 USD).
- West Java (lowest): IDR 2,057,495 per month (around $129 USD).
- For 2025, there has been an average increase of 6.5%. Some of the announced minimum wages for 2025 include:
- Jakarta (highest estimated): IDR 5,396,760 per month (around $337 USD).
- West Java (lowest estimated): IDR 2,191,232 per month (around $137 USD).
- The minimum wage is often lower than the average income, reflecting the large informal work sector and job demand exceeding supply.
3. Income of IT Workers:
- IT workers generally earn significantly more than the average income in Indonesia due to the demand for their skills.
- Average Monthly Salary for IT Workers: In large cities like Jakarta, the average monthly salary for an IT worker ranges from IDR 12,000,000 to IDR 15,000,000 (approximately $750 to $938 USD).
- Software Engineer Salaries:
- Mid-level software engineers might earn around IDR 15,000,000 (approximately $938 USD) per month.
- Senior software engineers can earn considerably more.
- IT Manager Salaries: Average around IDR 11,166,200 (approximately $698 USD) per month.
- IT Director Salaries: Average around IDR 12,543,200 (approximately $784 USD) per month.
- Factors Affecting IT Salaries: Experience, specific skills (e.g., cybersecurity, AI), the size and type of the company (multinational corporations often pay higher), and location all play a role in determining the salary of IT professionals.
Comparison to Other Countries:
- Average salaries in Indonesia are considerably lower than in developed countries like the United States or Germany.
- Compared to some other developing countries in the region, Indonesia’s average salary can be lower (e.g., Thailand) or similar (e.g., Vietnam).
Income Inequality:
- There is a notable income gap in Indonesia, as indicated by the difference between the average and median income. A significant portion of the workforce earns closer to the minimum wage, while a smaller segment earns substantially higher incomes, particularly in skilled professions and managerial roles in major cities.
In conclusion, while the average income in Indonesia is relatively modest, IT professionals tend to earn significantly more However, it’s crucial to consider the wide range of incomes across different sectors, locations, and skill levels.