Cost of Living in Indonesia

The low cost of living in Indonesia for expats is making it an attractive choice for foreigners. Although knowing the climate and political conditions are vital, the financial situation is naturally at the topmost of everyone’s concern.

Tax System

The tax rate in Indonesia is fairly stable, with the company income tax set at 30 per cent and the individual income tax at 35 per cent. It is also important to remember that there are added taxes like the VAT (value added tax) that can be charged for certain goods and services. While this may seem high, it is compensated for by the fact that even for a thousand or so dollars a month one can live comfortably.

Medical and Health Care

While the cost of living in Indonesia for expats is low maintenance, the health care sector cannot be compared with those in other countries like Japan or Singapore. That being said, there are certain hospitals in the major cities for expats, so you can have your checkup there. If you came from the United States or somewhere in Europe, you may become exposed to illnesses like dengue. Getting a health insurance is a good idea. This is assuming your mother company has not provided you with one already.

Budgeting Concerns

As stated, a monthly income or salary of $1,400 to $1,600 will be sufficient for you and your family to live well. If you want to lower the cost of living in Indonesia for expats even more, you can settle in the rural area where $200 or less will be sufficient.

A lot of the expats who are living in Indonesia or going to be relocated there will likely earn more than the minimum amount stated. This is one of the reasons why this place has become very enticing for foreigners. Even for those on a thousand dollar budget, most of the expenses will just be for the rent, and the rest can be spent on shopping. The goods and items sold in most of the stores and shopping centers are very cheap compared with those sold in other countries in Asia.

Other Information

Although the low cost of living in Indonesia for expats is enticing, you should be aware of strict regulations concerning visas. While you can obtain a VAO (Visa on Arrival) for $25 (more or less), this is good for 30 days. If you stay for a longer period without informing the authorities you will get in trouble. At the very least there will be a fine of $20 for every day you overstay; the maximum penalty is a prison sentence.

If you were assigned to the country you will not have to worry about employment, but if you are coming on your own, finding a job can be difficult as its economy is still struggling. It would be better if you get a job first before relocating your family there.

With the affordable cost of living in Indonesia for expats, it can be the ideal destination. While it may have problems, it is a beautiful country, and you will experience a culture that is quite unlike any other.