Indonesia’s Minimum Living Wage for 2024: Just 1.02 Million Rupiah a Month!

Indonesia’s Central Statistics Agency (BPS) reports: In 2024, the average minimum spending required to ensure a decent standard of living is 1.02 million rupiah per person per month, equivalent to 12.34 million rupiah annually.
What is a “decent standard of living”?
This figure is calculated to estimate the minimum amount needed to cover the basic needs of an Indonesian citizen. It plays a crucial role in determining the poverty line, minimum wage (UMR), and serves as a key indicator for economic planning. It reflects expenses for essentials such as food, housing, and transportation.
According to BPS data, per capita spending in Indonesia has continued to rise since 2020. The average per capita annual expenditure is 11.01 million rupiah. However, income distribution remains uneven across the country.
• Jakarta has the highest per capita spending, at 19.95 million rupiah per year, or about 1.66 million rupiah per month.
• Meanwhile, Papua is at the bottom, with per capita spending at 5.71 million rupiah annually, or approximately 476,000 rupiah per month.
Human Development Index (HDI) Improvement
The Human Development Index (HDI) in Indonesia has risen to 75.02, driven by improvements in education and increased life expectancy.
What is the Human Development Index (HDI)?
The HDI measures the level of social and economic development of countries, developed by the United Nations Development Programme (UNDP), and is based on three main criteria:
1️⃣ Life expectancy – Reflecting the population’s health and longevity.
2️⃣ Education level – Including adult literacy rates and average years of schooling.
3️⃣ Income – Measured by adjusted GDP per capita to assess material well-being.
The minimum living wage highlights the current economic situation in the country and serves as an important benchmark for developing social policies and assessing the population’s welfare. Economic reforms and human capital development remain key priorities for further progress.
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