Living in Indonesia: Cost Analysis and Lifestyle Comparisons

When considering a move to Indonesia, one of the critical factors to evaluate is the cost of living. Specifically, comparing the cost of living in Indonesia, particularly in Jakarta, to that in India, provides a useful benchmark for those currently living in India. In this article, we will delve into the actual living cost in Indonesia for a month, focusing on rent, essential bills, and other living expenses.

Accurate Assessments and Cost Comparison

In Jakarta, the capital city of Indonesia, living expenses can be roughly one and a half times higher compared to India. For instance, if your monthly income in India is INR 3 lakhs (approx. USD 4,500), you would need to earn approximately INR 4.5 lakhs (approx. USD 6,000) to have a similar standard of living in Jakarta. However, in most other Indonesian cities, a multiplier of 1.25 times the Indian income could be more appropriate.

Expenses Breakdown

Breaking down the living expenses in Jakarta, we can observe several key areas where costs may vary significantly from India:

Rent and Housing

The cost of renting a two-bedroom house with a carport in Jakarta can range from USD 500 to USD 1000 per month. However, depending on the facilities, these costs can increase. For those who prefer an apartment, you might find the cost of living to be slightly lower. It is crucial to note that paying for your own house or apartment can lead to significant savings compared to renting.

In terms of mobility, having access to a car can greatly enhance your quality of life in Jakarta. Your employer can provide a car as an employment benefit, making it tax-free. Kia models are readily available in Indonesia, offering a range of options to suit your needs.

Education

For families with children, educational expenses can be a substantial factor. International schools in Jakarta, such as Jakarta International School, offer a high standard of English-medium education, though they can be expensive. Try to negotiate other benefits provided by your employer to cover educational expenses, as these can be deducted as tax-free perks.

Food and Other Essentials

Food and other necessities can vary greatly depending on your origin. For Indians moving to Indonesia, fresh vegetables and other food supplies may be more expensive. However, for those from Europe or the US, food costs can be surprisingly affordable. Vendors and street stalls offer a budget-friendly option, with meals typically costing around USD 25 per person, including drinks.

Street Vendors and Stalls: Eating out from street vendors and stalls is an incredibly cost-effective option. You can enjoy a meal, meals for the whole family, for much less than USD 25 per person. This is a significant advantage when it comes to managing monthly expenses.

Additional Living Expenses

A more modest lifestyle may still cost around USD 1,500 for a family of two in Indonesia, staying in an owned house with a car and two motorcycles, dining out a few times a week at small restaurants or street vendors, and including school fees, electricity, gas, and fuel. Understanding how to manage these costs can help you live within your means in Jakarta.

Conclusion

While the cost of living in Jakarta is significantly higher than in some parts of India, there are numerous ways to manage and potentially minimize expenses through negotiated benefits from your employer and strategic spending. Whether you prioritize tax advantages, high-quality education, or budget-friendly meals, living in Indonesia can offer a satisfying and budget-friendly lifestyle if you are well-prepared.

Ultimately, the key to managing living costs in Indonesia, particularly in Jakarta, lies in leveraging available benefits, making smart choices about housing and transportation, and adopting a cost-conscious approach to daily expenses.