What is the average salary in Indonesia in 2024?

Throughout history, the consensus on salary between laborers and businesses has been the key to fostering sustainable relationships in any country's labor market. In this article, we delve into the average salary in Indonesia - a topic of paramount importance not only to job seekers but also to businesses seeking to attract and retain top talent. Let's explore further the considerations of salary levels in this promising labor market!

Researching about salaries in Indonesia

Overview of average salary in Indonesia

In the dynamic landscape of Indonesia's workforce, understanding the average salary is pivotal for both employees and employers alike. Let's delve into the intricacies of salaries in Indonesia, exploring key aspects such as the average salary for workers, minimum wage regulations, and industry-specific salary.

What is the average salary for workers in Indonesia?

The average salary in Indonesia per month stands at approximately 12,200,000 IDR, equivalent to 146,000,000 IDR annually. However, this figure varies across sectors, locations, and job roles, reflecting the diverse economic fabric of the country.

Minimum wage in Indonesia

The government-mandated minimum wage in Indonesia varies by location and is subject to regular revision to align with changing economic conditions and living costs. As of recent updates, Jakarta's minimum wage has increased to 5,070,000 IDR in 2024 from 4,900,000 per month in 2023, with similar adjustments implemented across provinces and cities.

Source: tradingeconomics.com

A line chart showing the growth of minimum wages for workers in Indonesia

Average salary by industry

In Indonesia's diverse economic landscape, salaries vary significantly across different industries, reflecting varying skill requirements, market demand and economic conditions. Let's delve into the average salaries for key industries, supplemented with recent statistics from the past few years:

• Unskilled Laborers: ~ IDR 3,400,000 per month - This category encompasses entry-level positions in industries such as manufacturing and construction, where wages typically align with or slightly exceed the minimum wage.

• Education (Teachers): IDR 5,000,000 ~ IDR 13,880,000 per month - These figures represent the midpoint and average from our proprietary Total Pay Estimate model, indicating competitive compensation for educators in Indonesia.

• Business Professionals: IDR 13,000,000 ~ IDR 30,000,000 per month (for manager) - Businessmen in Indonesia command substantial annual salaries, reflecting the country's dynamic business environment and entrepreneurial opportunities.

• Healthcare (Doctors): IDR 7,500,000 ~ IDR 10,500,000 per month - Medical practitioners, including doctors and specialists, enjoy competitive salaries in Indonesia, with earnings varying based on specialization and experience.

• Information Technology Executive (IT): IDR 6,300,000 ~ IDR 19,900,000 per month - The IT sector offers lucrative opportunities, with salaries ranging widely depending on job roles, skills, and experience levels.

Average salary of Information Technology Executive in Indonesia

Average salary comparison in different regions of Indonesia

Average salaries in Indonesia vary significantly depending on the region, reflecting differences in living costs, economic activities and industry presence. Below is a comparison of average monthly salaries across major cities in Indonesia:

Source: salaryexplorer.com

Please note that these values represent averages based on salary reports from Indonesian employees, including foreigners. Actual salaries may vary depending on factors such as experience, industry, and individual negotiations. Additionally, it's essential to consider other aspects such as cost of living and job opportunities when evaluating salary levels in different regions of Indonesia.

Average salary in Indonesia vs The World

When examining average salaries globally, average salary in Indonesia stands out as a competitive player despite the region's high cost of living. Let's compare the average monthly salaries of Indonesia with those of other countries:

Source: Salary Explorer

Interestingly, the average salary in Indonesia of approximately 818 USD places it competitively among other countries, especially when considering the global average personal income of 811 USD per month. When considering economic growth, inflation, and currency valuation, Indonesia's wage level reflects its position as a significant player in the global market.

In conclusion, while Indonesia's average salary may be lower than some developed nations, it remains noteworthy in the context of its regional and global economic standing. Factors such as cost of living, purchasing power, and economic growth contribute to Indonesia's competitive position in the global salary landscape.

Characteristics of the Labor Market in Indonesia

The labor market in Indonesia boasts several distinct characteristics, making it an attractive destination for outsourcing and business expansion. Let's delve into these key features:

• Cost Advantage: Indonesia offers lower labor costs, making it attractive for outsourcing and cost-effective business operations.

• Tax Incentives: The government provides tax breaks to encourage international investment and outsourcing, reducing operational expenses.

• Steady Economic Growth: Indonesia's expanding economy provides a stable and promising market for business expansion and outsourcing ventures.

• Affordable Living and Operating Costs: Compared to Western countries, Indonesia has lower living and operational expenses, enhancing cost-effectiveness for businesses.

• Digitalization and Industrialization: Indonesia is rapidly advancing in digital and industrial sectors, offering opportunities for technology-related outsourcing and industrial collaboration.

The market economy in Indonesia is developing

How to  find good candidates in Indonesia? 

Aniday offers a revolutionary solution for businesses seeking top talent in Indonesia. Leveraging a vast network of experts and headhunters, Aniday streamlines the recruitment process, making it easier than ever to find and attract skilled professionals. Our core values success:

• Trust and Build Trust: Aniday prioritizes trust, both within our team and with our clients and partners, fostering a collaborative and supportive environment.

• Focus on Impact: We focus our efforts on initiatives that deliver significant value and impact for organizations and the recruitment market, ensuring our contributions align with our clients' long-term goals.

• Bold Decision, Fierce Execution: Aniday encourages bold decision-making and relentless execution, empowering individuals to push boundaries and achieve unprecedented success.

• Payroll Service for International Companies: Aniday assists foreign companies hiring talent in the region by offering a full-service payroll solution, managing salary payments, and handling legal, tax, insurance, and compliance issues for employees.

With Aniday, businesses in Indonesia can access top talent efficiently and effectively, navigate international employment complexities effortlessly, ensuring operational efficiency and peace of mind to focus on core objectives. Trust us to deliver exceptional results for your recruitment needs.

Aniday - Simplifying Employment and Recruitment Challenges in Indonesia

In conclusion, average salary in Indonesia is a dynamic and competitive landscape, reflecting the country's economic growth and diversity. Despite variations across industries, locations, and experience levels, Indonesia offers attractive opportunities for both employers and job seekers. With our extensive network of experts and headhunters, coupled with innovative solutions and proven results, Aniday streamlines the recruitment process, ensuring access to quality candidates and driving organizational success.