Average Salary in Indonesia
The latest data from Indonesia’s Central Statistics Agency (BPS) shows a net average monthly wage of 3.09 million Indonesian Rupiah (IDR) in February 2025. That’s equivalent to USD 189, based on current exchange rates.
Despite being classified as an upper-middle-income country, wages are relatively low compared to rising living costs and inflation pressures across the archipelago.
In this article, you’ll learn how average salaries vary in Indonesia based on factors like the region, industry sector, occupation, and education, so you can get a full picture.
Bitte beachte:
- All data in this article are based on official statistics and reports, such as BPS Statistics Indonesia (BPS) and World Bank reports.
- The official currency of Indonesia is the Indonesian Rupiah (IDR).
- The figures in the article are also gross and net salaries.
- One IDR equals 0,000061 USD when writing this article. Double-check the exchange rate at the time of reading.
What are some key stats on Indonesia’s average salaries?
- Average monthly salary: 3.09 million IDR (USD 189). Source: BPS
- Average annual salary: 37.08 million IDR (USD 2268). Source: BPS
- Median salary: 4 million IDR (USD 245.93). Source: BPS
- Minimum wage: 3,320,000 IDR (USD 204.12). Source: BPS
- Gender pay gap: 24%Source: World Economic Forum
What is the average salary in Indonesia?
The national average monthly salary is 3.09 million IDR (USD 189) for formal sector employees, excluding informal workers and freelancers. Informal workers and freelancers are a substantial portion of Indonesia’s workforce.
This figure marks a modest 1.78% increase from February 2024, translating to approximately 50,000 IDR in nominal growth. In 2014, according to data from the International Labour Organization, the average wage levels were approximately 1.95 million IDR.
The salary range varies significantly based on regions, with urban centers and industrial provinces having higher average salaries than rural areas. Jakarta, as the capital and economic hub, typically offers a 10-15% higher monthly salary.
What is the median salary in Indonesia?
The median salary in Indonesia is around 4 million IDR (USD 245.93) per month.
As a general note, the median salary adds pivotal insight into a country’s income distribution, as it represents the middle point of the salary distribution. This median shows that 50% of the population earns below the median, while 50% of the population earns above the median.
What is the minimum wage in Indonesia?
The minimum wage in Indonesia is set at the district and province levels, with a national average of 3,320,000 IDR (USD 204.12).
The average minimum wage rose by 6.5% for 2025, as an effort of the government to support workers’ purchasing power. This decentralized minimum wage goes through an annual review, and it accounts for inflation, economic growth, and labor’s contribution to the economy.
As expected, provincial minimum wages range substantially across the archipelago, as there are high variations between local economic conditions and the cost of living. Jakarta has one of the highest minimum wages at approximately 5.4 million IDR monthly. Rural provinces have set a base salary closer to 2 million IDR.
| Provinz | Minimum wage (IDR) | Approx. USD* |
|---|---|---|
| Jakarta (DKI) | 5,396,761 | $331.80 |
| Central Java | 2,169,349 | $133.38 |
| East Java | 2,305,985 | $141.78 |
| Papua | 4,285,850 | $263.50 |
| Bali | 2,996,561 | $184.23 |
| Aceh | 3,685,616 | $226.60 |
| *Exchange rate: IDR 16,265 ≈ 1 USD (June 2025) |
What is the average salary by region in Indonesia?
If in DKI Jakarta you’ll find an average salary of 4.88 million IDR, in Kepulauan Riau it’s 4.74 million IDR, and in Papua Tengah 4.75 million IDR. In contrast, provinces such as Lampung (2.32 million IDR), Nusa Tenggara Timur (2.34 million IDR), and Gorontalo (2.51 million IDR) are at the lower end of the wage spectrum
As expected, the city’s average monthly salary of 4.88 million IDR in Jakarta reflects its status as the economic and administrative center of the country. On the opposite side, the lower salary range is in the rural regions.
This wage gap is influenced by some factors, among which:
- Higher access to formal employment, and a concentration of skilled workers => more developed industries, more competitive wages in major cities like DKI Jakarta or Kepulauan Riau.
- Relying on agriculture and informal work (sectors that typically offer lower pay and less job security) => low labor costs and lower wages.
| Provinz | Average wage (IDR) |
|---|---|
| Jakarta (DKI) | 4.88 million IDR |
| Kepulauan Riau | 4.74 million IDR |
| Papua Tengah | 4.75 million IDR |
| Lampung | 2.32 million IDR |
| Nusa Tenggara Timur | 2.34 million IDR |
| Gorontalo | 2.51 million IDR |
What is the average salary by industry in Indonesia?
The highest average salary in Indonesia is found in the following sectors:
- Electricity, Gas, Steam, and Air Conditioning Supply sector, where employees earn a maximum salary of IDR 5,040,313 (USD 309.89).
- This is closely followed by the Financial and Insurance Activities sector at IDR 4,878,087 (USD 299.91)
- Information and Communication sector at IDR 4,131,648 (USD 254.02).
According to BPS, the latter experienced a significant decline of -12.78% compared to the previous year.
In the middle range, there are industries like:
- Construction (IDR 3,209,091)
- Professional Activities and Administrative & Support Services (IDR 3,965,419)
- Transportation and Storage (IDR 3,720,086)
These industries are experiencing rapid growth, and their position reflects Indonesia’s growing service and infrastructure economy.
At the lower end of the wage spectrum, you find:
- The Agriculture, Forestry, and Fishing sector records the lowest average salary at IDR 2,247,459
- Other Service Activities (IDR 1,808,930)
- Accommodation and Food Service Activities (IDR 2,424,447).
These sectors typically employ a large share of informal and lower-skilled workers, also characterized by a lower salary range.
| Branche | Average Wage (Rupiah) |
|---|---|
| Agriculture, Forestry, and Fishing | 2,247,459 |
| Bergbau und Gewinnung von Steinen und Erden | 5,086,094 |
| Herstellung | 3,090,532 |
| Electricity, Gas, Steam, and Air Conditioning Supply | 5,040,313 |
| Water Supply, Sewerage, Waste Management, and Remediation Activities | 2,906,210 |
| Bauwesen | 3,209,091 |
| Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles | 2,667,185 |
| Transportation and Storage | 3,720,086 |
| Accommodation and Food Service Activities | 2,424,447 |
| Information and Communication | 4,131,648 |
| Financial and Insurance Activities | 4,878,087 |
| Liegenschaften | 4,042,854 |
| Professional Activities and Administrative & Support Activities | 3,965,419 |
| Public Administration and Defence; Compulsory Social Security | 3,758,174 |
| Bildung | 2,794,131 |
| Human Health and Social Work Activities | 3,415,963 |
| Other Service Activities | 1,808,930 |
| Total Average | 3,094,818 |
Source: BPS-Statistics Indonesia, National Labour Force Survey February 2025
What is the average salary by education level?
As in most countries, the average salary in Indonesia varies significantly based on someone’s educational attainment. Obviously, there is a clear correlation between education and salary – the higher the education, the higher the salary.
In the Indonesian economic landscape, the salary range based on education looks as follows:
- Workers with only primary school education or below earn an average pay of 2.07 million IDR monthly
- Junior high school graduates earn approximately 2.48 million IDR monthly
- Senior high school graduates see their earnings rise to nearly 3 million IDR monthly.
Interestingly, vocational high school graduates earn slightly less (2.97 million IDR) than their academic senior high school counterparts. Hence, I might conclude that general education may provide marginally better immediate earning prospects, but there’s no certainty in that.
However, the most significant salary jump occurs at the tertiary education level, where diploma holders (I/II/III) earn 3.89 million IDR monthly. The highest earners are those with advanced degrees (Diploma IV, Bachelor’s degree, Master’s, or Doctoral) on the job market, who have an average salary in Indonesia of 4.35 million IDR. That’s more than double what primary school graduates earn.
| Bildungsniveau | Average salary (Rupiah) | Average salary (USD)* |
|---|---|---|
| Primary School and Below | 2,073,275 | $127.47 |
| Junior High School | 2,481,444 | $152.56 |
| Senior High School | 2,982,835 | $183.39 |
| Vocational High School | 2,965,677 | $82.33 |
| Diploma I/II/III | 3,890,826 | $239.21 |
| Diploma IV, Bachelor, Master, or Doctoral Degrees | 4,350,202 | $267.46 |
How much is the gender wage gap in Indonesia?
The gender wage gap in Indonesia is 24%, according to the World Economic Forum‘s Global Gender Gap Report 2024.
This means that, on average, women in Indonesia earn about 76% of what men earn for comparable work. Indonesia has had steady growth in this gender wage disparity chapter, as the same WEF report specifies that the country has closed 68.6% of its overall gender gap. Currently, it is ranked 100th out of 146 countries globally in this report.
Indonesia has to make gradual progress to lower this gap to make any job type paid equitably for job seekers, regardless of their gender.
What are the salary growth trends in Indonesia?
From February 2024 to February 2025, the nominal wage increase was at a rate of 1.78%, but the salary growth patterns can be seen over the past decade. The above 1.78% shows that increases are struggling to keep pace with inflation and rising living costs in Indonesia.
That’s why this slow growth contrasts with more aggressive minimum wage adjustments. Hence, the average salary in Indonesia is growing with difficulty, as it might be constrained by productivity improvements and competitive pressures.
Some other facts on salary growth in Indonesia:
- Historical wage data from the International Labour Organization shows that average wages increased from approximately 1.95 million IDR in 2014 to over 3 million IDR by 2025. This is a significant nominal growth over the period. However, if a salary increases to stay adjusted for inflation, it reduces the real wage gains, particularly given Indonesia’s experience with periodic inflationary pressures.
- Sectoral wage growth varies considerably, with technology, finance, and mining sectors generally outpacing national averages while traditional manufacturing and services have more modest increases. Government policies, including minimum wage adjustments and labor market reforms, continue to influence wage dynamics across different employment categories. The 6.5% minimum wage increase for 2025 represents a more proactive approach to supporting worker purchasing power.
Interesting labor market facts about Indonesia
- Indonesia’s labor force reached a record 153.05 million people in 2025, which makes it the largest labor force among Southeast Asian nations. Ot has 145.77 million people employed, a 2.52% year-on-year increase. Source: Hrsea
- Despite this large workforce, 30% of Indonesian companies have a hard time finding skilled workers, and only 12.66% of the workforce has a university degree. Over 36% have no education beyond elementary school. Source: Hrsea
- The unemployment rate in 2025 is 4.76% – this is the lowest level since the 1998 crisis, so the country shows strong labor market resilience. Source: Indonesia-investments.com
- Underemployment has been and still is a concern, with 8% of the labor force underemployed in 2025, and a higher rate among men (8.36%) than women (7.47%). Indonesia-investments.com
- Labor force participation rates are high for men (84.3%) and steadily rising for women (56.7%). Indonesia-investments.com
- Urban unemployment is significantly higher than rural unemployment, as many rural Indonesians migrate to cities in search of better job opportunities. ASEANbriefing
- The informal sector still accounts for about 58% of Indonesia’s workforce. That means that many workers don’t have formal contracts, job security, or social benefits. ASEANbriefing
- Indonesia’s workforce is notably young. The median age is around 30, and the country is experiencing a “demographic bonus” as the productive-age population outnumbers dependents. ASEANbriefing
- The tech sector is booming, with over 600,000 tech positions that need to be filled, and digital transformation was expected to contribute up to 18% of GDP by the end of 2024. Roles in AI, cybersecurity, and data analytics are in high demand. Nucamp
Gehaltsvergleich mit anderen Ländern
When comparing Indonesia with countries from Southeast Asia, it is placed ahead of countries like the Philippines and Vietnam. However, Indonesia’s average salary is still significantly lower than that of Thailand, with an average monthly salary of 97,300 THB (about USD 2,767) in 2025, and is far behind developed Asian economies such as Singapore and Japan, where average monthly salaries can exceed USD 4,000 to USD 5,000.
Regionally, Indonesia’s wages are also below those in Malaysia, where average monthly earnings are typically above USD 1,200, and trail those of China, where urban salaries are rising rapidly and now average over USD 1,200 per month in major cities.
Globally, Indonesia’s average salary is modest, as the worldwide average monthly wage is estimated at USD 1,480.
FAQ
What is a good salary to live in Indonesia?
A good salary for comfortable living in Indonesia is around USD 630–950 per month, especially in major cities.
Is Indonesia high in income?
No, Indonesia is considered an upper-middle-income country, but average salaries are still low compared to many neighbors and global standards.
What are the benefits and considerations of outsourcing to Indonesia?
Outsourcing to Indonesia offers low labor costs and a growing skilled workforce (especially in sectors like IT, manufacturing, and digital services), but you should also check local skill gaps and make sure you’re compliant with local regulations.
Quellen
https://www.aseanbriefing.com/news/indonesias-minimum-wage-rates-for-2025
https://tradingeconomics.com/indonesia/minimum-wages
https://www.bps.go.id/en/statistics-table/2/MTUyMSMy/average-of-net-wage-
https://www.indonesia-investments.com/finance/macroeconomic-indicators/unemployment/item25
https://www.aseanbriefing.com/news/understanding-the-indonesian-labor-market
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