Flip Globe | 13 Juni 2023
By : Ruth Tambunan
The information about the average salary of a country can be used to know the financial condition of that country. For that, this article provides the average salary in Indonesia as well as the country's minimum wages and highest-paying jobs for additional details of what employees earn.
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50% of employees in Indonesia earn more than about 12.1 million IDR per month or around 806 USD, while the other half of workers get less than that monthly income. That is very low for an average salary number. So low that even the monthly minimum wage in the United States is much higher, with 1160 USD or about 17.4 million IDR.
To make it even worse, only around 20% of employees in Indonesia earn a monthly salary that is more than the United States’ minimum wage. However, up to 75% of those people get 7.5 million IDR monthly.
Still, the average salary in Indonesia is consistently increasing year by year. In every period of a year and a half, the average salary increases by 8%. That is crucial to boost the low average salary. That percentage is also great considering the world’s average salary increases only 3% every 16 months.
Source : Envato
In Indonesia, there are some sorts of minimum wages to know the salary expectancy and the average salary in Indonesia. One of the most common and used ones is the provincial minimum wage, or UMP (Upah Minimum Provinsi), in the country.
The sad thing is, at least for workers, the minimum wage overall is very low. For comparison, the previously mentioned minimum wage in the United States is more than three times bigger than the highest provincial minimum wage in Indonesia.
The province with the highest minimum wage, around 4.9 million IDR or about 326 USD a month, is Indonesia’s capital, Jakarta. It is the only province with more than four million rupiahs of minimum wage as the far second place belongs to Bangka Belitung with approximately 3.5 million IDR per month.
Top Five Highest Monthly Minimum Wages
In contrast, the lowest UMP in Indonesia is eye-watering less than two million rupiahs, which is no more than 134 USD for a whole month. Three regions with that sad number are West Java, the Special Region of Yogyakarta, and Central Java.
Top Five Lowest Monthly Minimum Wages
Special Region of Yogyakarta
West Nusa Tenggara
Another common one is the regional minimum wage or UMR (Upah Minimum Regional), covering smaller areas than the UMP. The highest UMR in Indonesia is about 5.1 million IDR (342 USD) per month. Ironically, that number can be found in Karawang, Bekasi City, and Bekasi Regency, located in a low-UMP area, West Java.
The numbers of minimum wage in certain areas are different due to the different living costs between them. The more expensive the living cost is, the higher the minimum wage will be, and vice versa. Still, the diversity is enormous, considering all areas are in the same country.
Source : Envato
With a 806 USD average salary in Indonesia and a low overall minimum wage, there must be several occupations to make some above-average monthly salaries. Some examples of those jobs are doctor, surgeon, dentist, judge, attorney, bank manager, CEO, CFO, professor, pilot, and marketing director.
Of those 11 jobs, doctors and surgeons are the winners in Indonesia’s highest-paying occupations. The minimum salary for doctors and surgeons is already more than twice Indonesia’s average salary, and no other job can achieve that.
For judges, attorneys, dentists, CEOs, CFO, bank managers, and professors, the minimum salaries are also more than the average salary in the country.
Moreover, it is probable that a pilot or a marketing director earns below average salary in Indonesia. Nevertheless, with more experience and value, a pilot can earn up to 27.5 million IDR a month, whereas a marketing director has the potential to get a monthly 24.7 million IDR.
Here are the list of the monthly salary range of each highest-paying job in Indonesia:
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It is true that Indonesia still has some poverty issues to be solved, shown by the low salaries. However, judging from the country’s affordable living costs, the average salary in Indonesia is relatively enough to live a decent life.