Average salary in Indonesia [Updated 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 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 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

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

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.

The average salary in Indonesia for IT executive

Gender wage gap

In Indonesia, there exists a persistent income disparity between men and women. Several factors contribute to the gender wage gap, including occupational differentiation, working hours, educational discrepancies, career interruptions, discrimination, and limited leadership opportunities.

Women often encounter these obstacles more frequently than men. The concentrated causes of this issue include the nature of professions, cultural pressures, educational disparities, maternity leaves, time spent caring for family and children, and gender biases in high-level leadership positions. While the government has enacted laws to promote wage equality, enforcement remains challenging, necessitating continuous advocacy and policy enhancements.

The government's outlined efforts to address this issue include affordable elderly and child care services, regulations promoting flexible working hours, and specialized training programs. Both public and private companies must strive towards creating a fair job market where both genders can develop equally.

The The government is achieving gender wage equality for employees

Occupations with the highest salary levels

In Indonesia, certain high-paying professions are driven by skill demands, education requirements, and industry trends. Here are some top-paying professions:

• Corporate leaders: CEOs and high-level managers, especially in multinational companies, typically receive substantial compensation packages with bonuses and stock options.
• IT specialists: IT professionals like software developers, cybersecurity experts, and data analysts are in high demand in the rapidly growing digital economy, offering lucrative salaries.
• Finance professionals: Investment bankers and financial managers are compensated generously due to their critical specialized roles in business operations.
• Legal experts: Lawyers specializing in corporate law, intellectual property, and international law are among the top earners in Indonesia’s legal sector.
• Medical specialists: Specialized medical professionals such as surgeons, cardiologists, and neurologists command high salaries due to their extensive training and the essential nature of their work.
• Aviators: Commercial pilots and flight engineers enjoy considerable earning potential owing to the responsibility of passenger safety and the rigorous training required in the aviation industry.
• Engineering professionals: Senior engineers in sectors like petroleum, mining, and electrical engineering receive competitive salaries for their significant contributions.
• Marketing, communication, and PR executives: Professionals skilled in driving business growth through marketing and communication strategies are well-compensated.
• HR leaders: HR directors overseeing talent strategies and workforce management are rewarded for their crucial success role.
• Supply chain and logistics managers: Experts in supply chain management and logistics optimization are lucratively compensated for their contributions to trade.

While these roles offer high salaries, earnings can vary based on factors like experience, location, and negotiation skills. Success in these fields often requires extensive education, experience, and a global perspective.

Several high-paying professions in Indonesia

Does the average salary in Indonesia grow annually?

The average salary in Indonesia reflects economic progress and inflation trends, impacting consumer spending and living standards. Factors like productivity enhancements, labor market shifts, and government interventions influence wage dynamics. Indonesia's historical pattern shows fluctuations tied to economic conditions:

• Economic expansion: Strong growth prompts wage increases to attract talent.
• Inflation impact: High inflation can lead to wage adjustments to protect purchasing power.
• Labor efficiency: Productivity gains can elevate wages.
• Minimum wage changes: Adjustments affect overall wage growth.
• Industrial actions: Strikes can influence wage growth through renegotiated terms.
• FDI impact: Increased investments intensify competition for labor, boosting wages.

Government policies aim to sustain wage growth by fostering economic development and enhancing workforce skills. Wage growth fluctuates in response to economic conditions, reflecting business confidence and cost-cutting measures. Indonesia's evolving wage landscape embodies a complex interplay of economic, social, and political forces shaping labor dynamics.

Average salary in Indonesia will rise with individual capabilities

Factors influencing the average salary in Indonesia

In Indonesia, similar to other countries, a multitude of factors influence salary discrepancies across professions, regions, and industries, shedding light on the intricacies of the Indonesian labor landscape and income potential for diverse workforce segments.

• Economic sector and industry: Certain industries like finance, IT, and mining tend to offer higher salaries compared to sectors like agriculture and textiles.
• Geographical location: Urban areas, particularly Jakarta, feature higher salary brackets due to factors like living costs and skilled labor availability.
• Education: Higher educational qualifications often lead to access to better-paying positions.
• Experience: Seasoned professionals command higher salaries due to their expertise and knowledge.
• Company size: Larger corporations typically offer more competitive salaries and benefits.
• Foreign investment: Multinational companies in Indonesia can afford attractive compensation packages to secure top talent.
• Supply and demand: Labor market dynamics influence salary levels, with shortages driving up wages.
• Government regulations: Minimum wage laws and regulations impact salary structures.
• Inflation: Salary adjustments may align with inflation rates to maintain purchasing power.
• Unions: Labor unions can influence salaries through collective bargaining agreements.
• Cultural norms: Traditional beliefs and gender roles sometimes affect salary norms.
• Performance: Individual achievements often factor into salary decisions, with performance-based incentives.

In essence, the average salary in Indonesia landscape is a product of these multifaceted factors, requiring employers to stay competitive and employees to negotiate effectively to ensure fair compensation.

Is there variation in the average salary across regions in Indonesia?

The average salary in Indonesia varies 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:

City	Average monthly salary
Jakarta	13,800,000 IDR
Surabaya	13,600,000 IDR
Bandung	13,400,000 IDR
Tangerang	12,900,000 IDR
Malang	11,900,000 IDR

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.

Salaries vary across districts in Indonesia

The average salary in Indonesia vs the World

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

Country	Average monthly salary
Indonesia	12,100,000 IDR (~818 USD)
Switzerland	11,232 USD
USA	7,900 USD
Hong Kong	4,698 USD
China	4,510 USD
Germany	4,457 USD
Qatar	4,312 USD
South Korea	3,308 USD
Thailand	2,906 USD
India	429 USD
Philippines	224 USD
Global	811 USD

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.
• A 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, and 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, the 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.