Is the Cost of Living Outpacing Your Salary in Indonesia?

Cost of Living Outpacing Your Salary in Indonesia: Why So Many Feel the Squeeze

Have you noticed your salary doesn’t stretch as far as it used to? You’re not alone. The cost of living outpacing your salary in Indonesia is a reality for millions, especially in 2025. Let’s break down why this is happening and what you can do about it.

Cost of Living Outpacing Your Salary in Indonesia: What’s Happening?

First, let’s look at the numbers. The average monthly salary in Indonesia is around Rp 12,500,000 in 2025. However, if you live in Jakarta or another big city, you probably need even more just to get by. At the same time, the average monthly cost for a single person is about Rp 22,000,000. That means many people are spending almost everything they earn—or even more.

But why is this happening? Inflation is one big reason. In March 2025, prices for housing, electricity, and food jumped sharply. The end of electricity discounts and rising food prices hit everyone’s wallets. Even though Indonesia is still one of Asia’s most affordable countries, the gap between income and expenses is growing.

Transitioning to daily life, let’s talk about what this means for you. Eating out at a simple restaurant now costs at least Rp 30,000, while a fast-food meal is over Rp 50,000. Rent for a one-bedroom apartment in a city center can easily reach Rp 5,000,000 or more each month1. Add in transportation, utilities, and groceries, and your salary disappears fast.

How Indonesians Are Coping with the Squeeze

So, what are people doing? Many are cutting back on non-essentials. For example, fewer people are traveling for holidays, and more are choosing to cook at home instead of eating out. Some are picking up side gigs or freelance work to boost their income. Others are moving to less expensive neighborhoods or even smaller cities where living costs are lower.

Transitioning to bigger questions, people are also demanding change. Social media is full of discussions about rising costs and stagnant wages. There’s a growing call for better job opportunities, fairer salaries, and more affordable housing. While some companies are offering small salary increases, these often don’t keep up with inflation2. As a result, frustration is rising—especially among young adults trying to build their future.

What Can You Do?

If you feel the cost of living outpacing your salary in Indonesia, you’re not powerless. Start by tracking your spending and setting a budget. Look for ways to save, like using public transport, shopping at local markets, or sharing housing with friends. Consider upskilling or switching to industries that pay more, such as tech or finance. Don’t be afraid to negotiate your salary or seek better opportunities.

Transitioning to hope, remember you’re not alone in this struggle. The more we talk about these issues, the more likely change will come. Share your story, join the conversation, and support one another. Together, we can push for a fairer, more affordable Indonesia.