Cost of Living in Indonesia

The low cost of living in Indonesia for expats makes it an attractive choice for foreigners. Let us look at some of the aspects that need to be assessed before you decide to settle down in Indonesia.

Tax System in Indonesia

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 five hundred or so dollars a month one can live comfortably. Real estate tax and wealth tax is not applicable to expats in Indonesia.

Medical and Health Care

While the cost of living in Indonesia for expats is relatively low, the health care sector’s services cannot be compared to other countries like Japan or Australia. That being said, there are certain hospitals in the major cities for expats. Although these hospitals maybe more expensive, expats can receive the treatment they expect for minor ailments, in these hospitals. If you came from the United States or somewhere in Europe, you may become exposed to illnesses like dengue. Getting a reliable health insurance is very essential. Usually, when suffering from a major health problem or issue, expats prefer to go to to neighboring Singapore for treatment or return to their motherland.

Budgeting Concerns

As stated earlier, 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 still further, 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 are likely to 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 include 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 to those sold in other countries in Asia.

Additional 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 only 30 days. If you stay for a longer period without informing the authorities you will get into 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 to Indonesia.

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 get the opportunity to experience a culture that is quite unlike any other.