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When considering salaries in Indonesia, there are several key indicators to look at, including the average monthly income and the minimum wage. Among these, the starting salaries for university graduates are likely of particular interest to Japanese companies seeking to hire local talent in Indonesia.

This article examines the salary levels of Indonesian university graduates across various industry sectors. It also introduces data on the enrollment rate in higher education institutions, including universities, and provides an overview of job-hunting activities among students in Indonesia.

Starting Salaries for University Graduates in Indonesia

There are no official data available specifically for the starting salaries of university graduates in Indonesia. However, the average monthly income for the 20–24 age group (as of August 2024), which includes recent university graduates, is available by industry sector.

The average monthly income for individuals aged 20–24 is IDR 2,438,093 (approx. USD 155)*, representing 74.6% of the national average monthly income of IDR 3,267,618 (approx. USD 208)*.

Industries with relatively small income gaps between the 20–24 age group and the overall workforce include agriculture, forestry, fisheries, and accommodation/food services. In contrast, industries with significant income disparities include electricity and gas supply, information and communication, finance and insurance, corporate services, public administration and defense, education, and healthcare and social work.

*Converted at the exchange rate of IDR 15,700 per USD (as of May 2025).

Average Monthly Income by Industry Sector (Age 20–24 vs. Overall Workforce)

Source: BPS “Average Net Monthly Wage/Salary by Age Group and Main Industry in 17 Sectors (Rupiah), 2024”

Industry Sector	Average Monthly Income (Age 20–24)	Approx. USD	Average Monthly Income (All Ages)	Approx. USD
Agriculture, Forestry, and Fisheries	IDR 2,220,000	USD 141	IDR 2,410,000	USD 153
Mining and Quarrying	IDR 3,860,000	USD 246	IDR 5,230,000	USD 333
Manufacturing	IDR 2,710,000	USD 172	IDR 3,250,000	USD 207
Electricity and Gas Supply	IDR 2,880,000	USD 183	IDR 4,830,000	USD 308
Water Supply, Waste Management & Recycling	IDR 2,540,000	USD 162	IDR 2,950,000	USD 188
Construction	IDR 2,740,000	USD 174	IDR 3,290,000	USD 210
Wholesale, Retail, Vehicle/Motorcycle Repair	IDR 2,300,000	USD 147	IDR 2,850,000	USD 181
Transportation and Warehousing	IDR 2,980,000	USD 190	IDR 3,980,000	USD 253
Accommodation and Food Services	IDR 2,160,000	USD 138	IDR 2,440,000	USD 156
Information and Communication	IDR 2,800,000	USD 178	IDR 4,980,000	USD 317
Financial and Insurance Activities	IDR 3,270,000	USD 208	IDR 5,080,000	USD 323
Real Estate Activities	IDR 3,240,000	USD 206	IDR 4,300,000	USD 274
Corporate Services	IDR 3,060,000	USD 195	IDR 4,140,000	USD 264
Public Administration, Defense, Social Sec.	IDR 2,580,000	USD 164	IDR 4,160,000	USD 265
Education	IDR 1,170,000	USD 75	IDR 2,860,000	USD 182
Health and Social Work	IDR 2,240,000	USD 143	IDR 3,800,000	USD 242
Other Service Activities	IDR 2,010,000	USD 128	IDR 1,990,000	USD 127
Average	IDR 2,438,093	USD 155	IDR 3,267,618	USD 208

University Enrollment Rate in Indonesia

Enrollment Rate in Higher Education Institutions

According to the Indonesian Central Statistics Agency (BPS), the gross enrollment rate in higher education for individuals aged 19 to 23 was 32% as of 2024.

The gross enrollment rate is calculated by dividing the number of students enrolled at a given educational level by the population of the age group that officially corresponds to that level. It provides an overview of the participation rate in specific educational stages.

Indonesia’s gross enrollment rate in higher education remains below the global average of 40% and is comparatively low when benchmarked against other Southeast Asian countries such as Malaysia (43%), Thailand (49.3%), and Singapore (91.1%).

Sources:
BPS, Statistik Pendidikan 2024, p.53
KEMENKO PMK, Dana Kuliah Bergulir untuk Mengejar Target APK Pendidikan Tinggi

We will now present the gross enrollment rates in higher education institutions by gender, residential area, and economic status.

In Indonesia, female students generally show higher enrollment and graduation rates in higher education compared to male students. Moreover, since a certain level of financial means is required to pursue higher education, enrollment rates are significantly higher among economically advantaged groups and in urban areas as compared to rural areas.

Gross Enrollment Rate by Gender

• Male: 28.9%
• Female: 35.2%

Gross Enrollment Rate by Area of Residence

• Urban Areas: 38.6%
• Rural Areas: 21.2%

Gross Enrollment Rate by Economic Class

• Poorest Group: 18.2%
• Poor and Vulnerable Group: 22.5%
• Middle Class: 27.1%
• Upper-Middle Class: 33.3%
• Wealthiest Group: 54.3%

Source:
BPS, Statistik Pendidikan 2024, p.62

[Supplementary] Types of Higher Education Institutions in Indonesia

Indonesia has four main types of higher education institutions: public institutions, private institutions, foreign educational institutions, and those administered by the Ministry of Religious Affairs.

Within each category, there are classifications such as universities, academies, and polytechnics. The duration of study varies: vocational institutions generally offer programs lasting from one to three years, while university programs typically span four years, with postgraduate courses also available. Approximately 80% of students enrolled in higher education institutions are in four-year undergraduate (bachelor’s degree) programs.

The data covered in this article includes students enrolled in all of these institutions and academic programs.

Source:
Pangkalan Data Pendidikan Tinggi, Yuk cari tau tentang Statistik Perguruan Tinggi Di Indonesia

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Popular Employers Among Indonesian University Students

Among job seekers in Indonesia, state-owned enterprises (BUMN) are considered the most popular employers. In recent years, startup companies and e-commerce-related businesses have also become aspirational workplaces, especially for Generation Z university graduates. Of course, leading corporations with high salary standards across various industries continue to enjoy consistent popularity.

Popular State-Owned Enterprises

• Bank Mandiri
• Bank BNI (Bank Negara Indonesia)
• Bank BRI (Bank Rakyat Indonesia)
• Bank Indonesia
• Pertamina – National oil and gas company
• Telkom Indonesia – National telecommunications provider

Sources:
Jobstreet.com, 5 Perusahaan Impian di Indonesia Versi Jobstreet.com
SWA, Sektor Bisnis dan Perusahaan Incaran Para Pencari Kerja

Popular Startup Companies

• MySkill
• Tomoro Coffee
• SawitPRO
• Dealls
• Samir
• Gently
• AGAVI
• Chickin Indonesia
• Bababos
• Cettaonlineclass

In the startup ecosystem, agri-tech and ed-tech fields are attracting particular attention. There is also growing interest in companies promoting innovation in finance, food and beverage, and consumer goods sectors.

Source:
Katadata, 10 Startup Paling Diminati Pencari Kerja 2024: MySkill, Tomoro Coffee, SawitPRO

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Job Hunting Activities Among Indonesian University Students

In Indonesia, there is no cultural practice of simultaneous mass recruitment of new graduates. Students typically search for job opportunities through their university career centers, academic advisors, or connections with senior students. Other methods include applying for job postings found on online job portals, corporate social media accounts, and attending career fairs.

Career Fairs

Career fairs, commonly referred to as “Job Fairs” or “Career Expos,” are held monthly in various regions across Indonesia. These events range from large-scale fairs held at public venues to institution-specific events hosted by vocational high schools or universities.

The video presented here showcases a career fair hosted by BINUS University, which has campuses in Jakarta and Bandung. Approximately 75 companies participated in the event, setting up booths to take questions, accept applications from students, and hold seminars.

Many universities in Indonesia operate career centers that organize employment events and post job openings on internal portals, acting as a bridge between companies and students.

Internships for University Students

This video features students from Muhammadiyah University, based in Yogyakarta, undertaking internships at PT Freeport Indonesia, a major company in the mining sector.

Similar to Japan, companies in Indonesia also offer internship opportunities to university students. Some universities incorporate internships into their academic curriculum. Internship systems vary by company; some are paid while others are unpaid, and working hours also differ widely.

For companies, internships provide an opportunity to identify and recruit talented individuals. For students, internships offer hands-on experience in fields related to their academic studies. Additionally, having internship experience is a valuable addition to their résumés.

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Differences in Employment Situations for University Graduates in Indonesia Compared to Japan

As of now, only 32% of individuals in Indonesia within the age range typically attending higher education institutions are actually enrolled. In addition to university graduates, the pool of job seekers includes many graduates from general high schools and vocational schools. Furthermore, due to the absence of a simultaneous mass recruitment system for new graduates, there are cases where individuals experience a gap between graduation and employment.

Given these conditions, there are no officially cited figures for the “starting salary of university graduates.” However, as presented earlier, earnings for this group are estimated to be approximately 75% of the national average monthly income.

Many Indonesians change jobs more frequently than their Japanese counterparts. Consequently, for many students seeking employment, starting salary is not considered a particularly important factor.

Amid a high unemployment rate, securing a job—even temporarily—is seen as a significant first step. It allows individuals to build up work experience on their résumés and later seek better job opportunities with improved conditions. This pattern represents a common career path among Indonesian workers.

For Those Interested in Starting a New Business in Indonesia

No matter what entry form you are considering, please don't fixate only on that entry method. In Indonesia, where entry barriers are high, we recommend entering the market by managing risks and taking careful steps.