Living Wage Series - Indonesia - December 2018 - In Rupiah, per Month

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living Survey to calculate Living Wage in more than 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Rupiah)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 1549400-1990600 1377200-1769500 344300-442400
Housing 1000000-1250000 1000000-1250000 537500-611900
Transport 200000-228700 200000-228700 100000-114400
Health 200000-240000 200000-240000 50000-60000
Education 350000-500000 350000-500000 0
Other costs 165000-210500 156400-199400 51600-61400
Total Expenditure 3464400-4419800 3283600-4187600 1083400-1290100
Net Living Wage 2037882-2599882 1824222-2326445 1083400-1290100
Gross Living Wage 2282400-2911900 2043100-2605600 1213400-1444900

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Rupiah)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of most common family household compositions and under different assumptions about working hours.

  from-to
Typical family (two parents + 2.5 children, 1.7 working) 2282400-2911900
Standard family (two parents + 2 children, 1.8 working) 2043100-2605600
Two parents and two children, 2 working 1838800-2345100
Two parents and two children, 1.5 working 2451800-3126700
Two parents and two children, 1 working 3677600-4690100
Two parents and three children, 1.7 working 2401500-3064900
Two parents and four children, 1.7 working 2639700-3370900
Single-adult without children, 1 working 1213400-1444900

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Rupiah)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2015 2016 2017 2018
Minimum wage 1210000 1210000 1337645 1454154
Living Wage - Single Adult 984600-1351700 1093700-1459300 917000-1171300 1213400-1444900
Living Wage - Typical Family 1955000-2736300 2094900-2896000 1902200-2541600 2282400-2911900
Real wage of low-skilled worker 1881900-2803100 2083000-3062300 2060000-2958400 2385800-3421500
Real wage of medium-skilled worker 2413500-3386000 2592300-3590200 2720500-3698500 2947400-3986200
Real wage of high-skilled worker 2946600-4473500 3101900-4637700 3283000-4824100 3485200-5081800

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.

Indonesia Graph

Food basket and food prices in Rupiah

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 54 142 20000-24000
Rice 284 1024 9000-10000
Meat (beef, pork, poultry) 32 59 35000-50000
Oils (soyabean, olive, palm) 22 190 10000-12000
Sugar (Raw Equivalent) 33 116 12000-13000
Maize and products 75 184 12000-20000
Milk - Excluding Butter 31 15 12000-15000
Vegetables, Other 70 24 6000-10000
Potatoes and products 9 6 9000-12000
Butter, Ghee 1 7 15000-24000
Groundnuts (Shelled Eq) 49 86 20000-26000
Pulses, Other and products 0 1 12000-20000
Cassava and products 99 102 4000-5000
Egg (price per 10 eggs) 10 15 12500-15000
Sunflowerseed Oil 0 1 15000-20000
Fish products 59 44 25000-30000
Beer (0.5 liter/pint) 2 1 50000-70000
Sweeteners, Other 3 11 12000-13000
Beans 2 7 12000-20000
Sweet potatoes 16 16 5000-6000
Bananas 40 25 10000-15000
Soyabeans 2 8 9000-13000
Apples and products 1 1 24000-30000
Tomatoes and products 8 2 6000-10000
Onions 8 3 12000-18000
Oranges, Mandarines 12 3 15900-20000
Peas 0 0 14000-20000
Roots, Other 3 4 8000-10000
Seeds and kernels 0 1 17000-25000
Wine (bottle) 0 0 66700-100000
Pineapples and products 12 3 8000-9000
Cream 0 0 15000-20000
Olives (including preserved) 0 0 32000-40000
Honey 0 0 75000-100000
Citrus, Other 0 0 12000-15000
Lemons, Limes and products 0 0 12000-20000
Tea (including mate) 1 0 14000-20000
Grapefruit and products 0 0 12000-20000
Coffee and products 0 0 15000-25000

 

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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