Average Monthly and Annual Income in Indonesia: Income Disparities Across Urban and Rural Areas and Various Occupations
- Publish
- 2022/08/07
- Update
- 2025/08/16
- You can read this article in 4minutes
- Differences in Average Monthly and Annual Income Between Indonesia and Japan
- Disparities in Average Monthly and Annual Income Within Indonesia
- Average Monthly and Annual Income in Jakarta Versus Other Regions
- Gender-Based Disparities in Average Monthly and Annual Income in Indonesia
- Disparities in Average Monthly and Annual Income Based on Educational Background in Indonesia
- Disparities in Average Monthly and Annual Income by Occupation in Indonesia
- Disparities in Average Monthly and Annual Income by Industry in Indonesia
- Disparities by Years of Service and Job Rank in Indonesia
- Trends in Minimum Wage in Indonesia
- The Concept of “Salary” from the Perspective of Indonesian Workers
When people think of Indonesia, many may associate it with inexpensive labor costs. In fact, the average monthly income in Indonesia is approximately ¥26,000 (around USD 167), and the average annual income is about ¥388,000 (around USD 2,493). While this is significantly lower than the equivalent figures in Japan, it is risky to assess Indonesia solely based on national averages. This is because Indonesia has far greater economic disparity compared to Japan.
This article provides an overview of Indonesia’s average monthly and annual income, highlighting variations based on region, gender, occupation, and industry.
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Differences in Average Monthly and Annual Income Between Indonesia and Japan
According to Japan’s National Tax Agency, the average annual income of salaried workers employed for the entire year in 2020 was JPY 4,330,000 (approximately USD 27,842). Subtracting the average bonus of JPY 650,000 (approximately USD 4,181), this equates to a monthly income of about JPY 310,000 (approximately USD 1,995).
Source: National Tax Agency, “2020 Survey on Private Sector Salary Statistics – Survey Report”
In comparison, a survey conducted in February 2022 by Indonesia’s Central Statistics Agency (Badan Pusat Statistik) revealed that the average monthly income in Indonesia was JPY 26,000 (approximately USD 167). Given that employees who have worked for more than one year typically receive a one-month salary bonus annually, the average annual income amounts to JPY 338,000 (approximately USD 2,171).
Source: BADAN PUSAT STATISTIK, “Average Monthly Net Wage/Salary (Rupiah) by Province and Main Occupation Type, 2022”
Looking at the country as a whole, Indonesia’s average monthly and annual incomes are approximately one-twelfth of those in Japan. The next section will explore how income levels vary within Indonesia.
Precautions when conducting an on-site inspection in Indonesia
Some visitors consider, "My primary purpose is to conduct maintenance work at the factory, but the visa application process appears cumbersome. I will simply enter on a Visa on Arrival (VOA) and carry out the work discreetly."
However, there have been numerous cases where entering without the appropriate visa for the intended activities has resulted in significant legal and operational issues. It is therefore strongly advised to obtain the correct visa prior to travel.
Here are the types of visas and their purposes.
Disparities in Average Monthly and Annual Income Within Indonesia
Average Monthly and Annual Income in Jakarta Versus Other Regions
As previously noted, Indonesia’s average monthly income stands at JPY 26,000 (approximately USD 167). However, when the same 2022 survey focuses specifically on Jakarta, the average monthly income rises to JPY 50,000 (approximately USD 321). This indicates that salaries in Jakarta, the economic center driving Indonesia’s development, are considerably higher than the national average.
In other regions, the situation varies. For example:
- West Java Province: JPY 28,000 (approx. USD 180)
- East Java Province: JPY 23,000 (approx. USD 148)
- Bali: JPY 24,000 (approx. USD 154)
Even within the same province, there are notable income gaps between urban areas and more remote rural locations.
Source: BADAN PUSAT STATISTIK, 2022
Gender-Based Disparities in Average Monthly and Annual Income in Indonesia
As of 2019, Indonesia had a 23% gender pay gap. Japan, with an approximate 25% gap, exhibits a similar situation.
Root causes include limited access to senior roles, career interruptions due to marriage or childbirth, and the preference for flexible, lower-paying jobs among women seeking to balance family responsibilities. Educational background and a traditionally male-dominated hiring culture also contribute to the wage gap.
Sources:
- CNBC INDONESIA
- Gajimu.com
- Yahoo! JAPAN SDGs
Disparities in Average Monthly and Annual Income Based on Educational Background in Indonesia
| Educational Attainment | Average Monthly Income | Average Annual Income |
|---|---|---|
| University Graduate | JPY 41,000 (USD 264) | JPY 533,000 (USD 3,434) |
| High School Graduate | JPY 24,000 (USD 154) | JPY 312,000 (USD 2,011) |
| Vocational School Graduate | JPY 25,000 (USD 161) | JPY 325,000 (USD 2,094) |
| Junior High Graduate | JPY 18,000 (USD 116) | JPY 234,000 (USD 1,509) |
| Elementary Graduate | JPY 16,000 (USD 103) | JPY 208,000 (USD 1,341) |
University ranking and reputation also influence employability and income.
Source: KOMPAS.com
Disparities in Average Monthly and Annual Income by Occupation in Indonesia
| Occupation | Monthly Income | Annual Income |
|---|---|---|
| Technical/Specialized Professions | JPY 80,000 (USD 514) | JPY 1,040,000 (USD 6,681) |
| Management | JPY 124,000 (USD 796) | JPY 1,612,000 (USD 10,352) |
| Clerical | JPY 55,000 (USD 353) | JPY 715,000 (USD 4,592) |
| Sales | JPY 48,000 (USD 308) | JPY 624,000 (USD 4,009) |
| Services | JPY 32,000 (USD 206) | JPY 416,000 (USD 2,673) |
| Agriculture/Fishery | JPY 16,000 (USD 103) | JPY 208,000 (USD 1,341) |
| Production/Transport | JPY 32,000 (USD 206) | JPY 416,000 (USD 2,673) |
Assumes annual THR bonus applies to all.
Source: BADAN PUSAT STATISTIK, 2022
Disparities in Average Monthly and Annual Income by Industry in Indonesia
High-income sectors include:
- IT
- Finance
- Construction
- Marketing
- Media & Communications
- Mining
- Engineering
- Chemical Industry
In Greater Jakarta, starting salaries in these industries begin around JPY 50,000 (USD 321) and may exceed JPY 300,000 (USD 1,928) at the executive level.
Low-income occupations include:
- Security personnel
- Office boys
- Taxi drivers
- Factory workers
- Teachers
These average JPY 25,000–30,000 (USD 161–193) monthly.
Sources: Suara.com, vocacia, indeed
Disparities by Years of Service and Job Rank in Indonesia
Seniority alone does not determine salary; rank/position has greater impact. Below are monthly incomes in the Computer/IT sector:
- New Graduate: JPY 45,000 (USD 289)
- Junior Executive: JPY 59,000 (USD 379)
- Supervisor: JPY 92,000 (USD 591)
- Manager: JPY 135,000 (USD 867)
- Executive: JPY 360,000 (USD 2,314)
In Jakarta, salaries often exceed national averages by 2x.
Source: databoks
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Taxi Troubles
IT company
We had planned to use a ride-hailing app for local transportation; however, due to the combination of the morning rush hour and heavy rain, no taxis were available even after waiting for over 30 minutes. In the end, we arranged a motorcycle taxi on short notice, but heavy traffic caused further delays. As a result, we were forced to postpone one of the two business meetings scheduled for the morning.
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Interpreter Issues
Cosmetics manufacturer
While traveling from central Jakarta to a client in the suburbs, our freelance local interpreter suddenly canceled. Since English was not widely understood in the area, we were unable to fully convey the finer nuances of our business discussions, which was highly regrettable. We came to realize that it would have been better to engage a professional interpreter through a reputable agency rather than relying on a low-cost freelancer.
Trends in Minimum Wage in Indonesia
Minimum Wages in Jakarta and Surrounding Areas
2023 minimum wages:
- Jakarta: JPY 44,000 (USD 283)
- Bekasi: JPY 46,000 (USD 296)
- Depok: JPY 42,000 (USD 270)
In West Java, some rural areas have minimum wages below JPY 20,000 (USD 129).
Source: Gajimu.com
Wage Increase Trends
Jakarta’s minimum wage rose 7.2% in 2023, recovering from 3.6% in 2021–2022.
Historical data:
- 2010: JPY 10,000 (USD 64)
- 2015: JPY 24,000 (USD 154)
- 2020: JPY 39,000 (USD 251)
Sources: BPS, KOMPAS.com, JIJI.com
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
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●Creative agency
I traveled without arranging an interpreter, but when I faced difficulties dealing with the local police, they came to my aid.
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●Recruitment agency
When I suddenly needed a conference room, I truly appreciated that they arranged one on my behalf.
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●Cosmetics manufacturer
After finishing drinks with colleagues late at night and being unable to find a taxi, they arranged a car for us, which was a great help.
The Concept of “Salary” from the Perspective of Indonesian Workers
Active Negotiation and Frequent Job Changes
Salaries are often negotiable. Many workers will openly discuss earnings or change jobs if unsatisfied.
High Earnings as Status Symbol
There is strong awareness of financial status. People often buy homes or cars beyond their means to showcase wealth.
Side businesses, from handmade goods to online shops via Facebook or Instagram, are common.
Challenges with Saving
Payday spending is prominent. Even professionals may lack savings.
Cultural and systemic factors:
- Only 49% of adults have bank accounts.
- Until recently, bank usage was uncommon, especially in rural areas.
Between 2014 and 2021, the number of account holders doubled, suggesting future changes in financial behavior.
Source: LIPUTAN6
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
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How much is the average monthly income in Indonesia?
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As of 2022, the average monthly income in Indonesia is approximately ¥26,000.
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How different is the monthly income between Indonesia as a whole and Jakarta?
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As of 2022, the national average monthly income in Indonesia is ¥26,000, while in Jakarta it is around ¥50,000.
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What is the minimum wage in Indonesia?
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The minimum wage in Indonesia is set annually by region. In 2023, Jakarta’s minimum monthly wage was approximately ¥44,000.
