Basic Salary and Average Salary in Indonesia: 2023 Data

Indonesia, the world’s fourth-most populous nation, boasts a diverse economy with a rapidly growing middle class. As the largest economy in Southeast Asia, Indonesia has experienced significant economic growth in recent years, attracting foreign investment and creating new employment opportunities. Understanding the salary landscape in Indonesia is crucial for both employers and potential employees.

Also read: Working in Indonesia as a Foreigner: A Complete Guide

Basic Salary in Indonesia

The minimum wage in Indonesia varies by province and regency. The national minimum wage for 2023 was set at IDR 3,070,000 per month, approximately USD 209. However, this figure can be significantly higher in some provinces, such as Jakarta, where the minimum wage is IDR 4,641,922 per month, approximately USD 318.

Also read: Basic Salary in Jakarta 2024: Latest UMR Update

Average Salary in Indonesia 2023

According to the National Labor Force Survey (Sakernas) conducted by the Central Statistics Agency (BPS), the average salary or wage for workers in Indonesia reached IDR 3.18 million per month (USD 227.14) in August 2023, equating to IDR 38.16 million annually (USD 2,725.68).

This figure represents a 3.50% increase compared to August of the previous year, where the average wage was IDR 3.07 million.

BPS obtained this data from the National Labor Force Survey (Sakernas), which is conducted twice a year, namely every February and August.

The data presented here is the salary/wage received by workers/employees, i.e., individuals who work for others/institutions/offices/companies regularly and receive compensation in the form of either money or goods.

Workers without a fixed employer are not categorized as workers/employees but as freelancers, and their wages/salaries are not included in this data.

Also read: Indonesia Labour Law & Employment Regulations

Comparison with Global Salaries

Compared to the average salary in developed countries, Indonesia’s average salary is relatively low. For instance, the average annual salary in the United States is USD 65,220, while in Germany it is USD 47,610. However, Indonesia’s average salary is higher than that of many other developing countries.

Also read: Can I Work in Indonesia with a KITAP?

Cities with the Highest Basic Salaries in Indonesia

Salaries in Indonesia vary significantly based on location, industry, and experience. The cities with the highest monthly basic salaries in Indonesia are:

1. Kabupaten Karawang: IDR 5,176,179 (USD 369.73)
2. Kota Bekasi: IDR 5,158,248 (USD 368.39)
3. Kabupaten Bekasi: IDR 5,137,574 (USD 366.89)
4. Jakarta: IDR 4,901,798 (USD 350.13)
5. Kota Depok: IDR 4,694,493 (USD 335.32)
6. Kota Cilegon: IDR 4,657,222 (USD 332.66)
7. Kota Bogor: IDR 4,639,429 (USD 331.23)
8. Kota Tangerang: IDR 4,584,519 (USD 327.46)
9. Kabupaten Tangerang Selatan: IDR 4,551,451 (USD 324.65)
10. Kabupaten Tangerang: IDR 4,527,688 (USD 322.75)

Cities with the Lowest Basic Salaries in Indonesia

The cities with the lowest monthly basic salaries in Indonesia are:

1. Kabupaten Temanggung: IDR 2,027,569 (USD 145.25)
2. Kabupaten Ciamis: IDR 2,021,657 (USD 144.80)
3. Kabupaten Brebes: IDR 2,018,836 (USD 144.59)
4. Kabupaten Kuningan: IDR 2,018,836 (USD 144.59)
5. Kabupaten Pangandaran: IDR 2,018,389 (USD 144.55)
6. Kabupaten Rembang: IDR 2,015,927 (USD 144.34)
7. Kabupaten Banjar: IDR 1,969,569 (USD 140.67)
8. Kabupaten Sragen: IDR 1,969,569 (USD 140.67)
9. Kabupaten Wonogiri: IDR 1,968,448 (USD 140.59)
10. Kabupaten Banjarnegara: IDR 1,958,169 (USD 139.83)

Also read: Work Culture in Indonesia: A Glimpse into the Work Ethic

Jobs with the Highest Average Salaries in Indonesia

Here is a complete list of the top 10 occupations with the highest average monthly wages according to the National Labor Force Survey (Sakernas) by BPS in August 2023, along with their respective conversions to USD:

1. Information and communication: IDR 5.13 million (USD 366.43)
2. Financial and insurance activities: IDR 5.11 million (USD 365.05)
3. Mining and quarrying: IDR 4.80 million (USD 342.86)
4. Electricity, gas, steam/air conditioning supply: IDR 4.36 million (USD 311.43)
5. Real estate: IDR 4.26 million (USD 304.29)
6. Professional and company services: IDR 4.04 million (USD 288.57)
7. Public administration, defense, and mandatory social security: IDR 3.97 million (USD 283.57)
8. Transportation and storage: IDR 3.79 million (USD 270.71)
9. Human health and social work activities: IDR 3.67 million (USD 262.14)
10. Manufacturing industry: IDR 3.20 million (USD 228.57)

Also read: 25 Best High Paying Jobs in Indonesia for Foreigners

Factors Influencing Salaries in Indonesia

Several factors contribute to the variations in salaries across Indonesia:

• Industry

  Certain industries, such as oil and gas, mining, and finance, typically offer higher salaries than others, such as agriculture and retail.

  Also read: Major Industries in Indonesia

• Experience

  Experienced professionals generally command higher salaries than those with less experience.

• Education

  Educational qualifications play a significant role in determining salary levels. Employees with higher degrees tend to earn more than those with lower educational attainment.

• Location

  Salaries tend to be higher in major cities and industrial hubs compared to smaller towns and rural areas.

  Also read: 11 Best City to Work in Indonesia for Foreigners

• Foreign Language Skills

  Fluency in English or other foreign languages can enhance salary prospects, especially in multinational companies.

Indonesia’s salary landscape reflects its diverse economy and growing middle class. While salaries are generally lower than in developed countries, they are steadily increasing, driven by economic growth and rising demand for skilled labor and this is also supported by the low cost of living.

Understanding the factors influencing salaries and the variations across cities and industries is crucial for both employers and employees to make informed decisions and navigate the Indonesian job market effectively.

So, are you interested in starting work in Indonesia? If yes, don’t forget to promptly apply for an Indonesia work visa.

Furthermore, you can also initiate business and investments here. However, remember to apply for an Indonesia business visa and Indonesia investor visa/KITAS.

To ensure a simpler visa application process, you can take advantage of the services provided by InvestinAsia for Indonesia visa applications.

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