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Indonesia’s Domestic Cost of Living and Quality of Living Reports

Indonesia’s rich diversity and unique socio-economic landscape shape living standards across its cities. Mercer Indonesia’s survey reveals key cost and quality of living differences, giving organisations the data they need to make fair, informed compensation decisions for domestic transfers—supporting both business goals and employee well-being.
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Understanding the landscape

Stretching 5,120 km from east to west and spanning 18,108 islands—6,000 of them inhabited—Indonesia is home to over 280 million people. Its diverse history, socio-economic patterns, and uneven economic distribution create significant variations in living standards across regions.

For companies, state-owned enterprises, government agencies, and non-profits operating in multiple cities, understanding these differences is critical—especially when relocating employees, whether permanently or temporarily.

Our research

Mercer Indonesia conducted a survey focusing on disparities in Cost of Living (COL) and Quality of Living (QOL) across major Indonesian cities. These insights help organisations:

  • Understand local market conditions.
  • Anticipate the impact of location on employee well-being.
  • Create competitive and equitable domestic mobility policies.

Why it matters

With reliable, fact-based data, our reports empower HR Professionals to:

  • Make accurate, equitable compensation decisions.
  • Set location-specific allowances for domestic transfers.
  • Improve fairness, competitiveness, and budget control in talent mobility

What do we cover?

  • Intercity indices:
    • Mean-to-mean index – comparing average prices
    • of base city and destination city.
    • Efficient index – comparing the lowest average price of base city and average price in destination city.
    • Convenience index – comparing the lowest average price in base city to the highest price in destination city, except for certain categories where it is compared against average price of base city.
  • Housing rental cost
    • Per area
    • Per number of rooms
    • Furnished and unfurnished
  • Education cost
  • Business travel expense
  • Medical expense
  • Actual prices on:
    • Food
    • Utensils
    • Clothing
    • Entertainment and sports
    • Home appliances
    • Transport

  • Political and social environment
  • Economic environment
  • Socio/cultural environment
  • Medical and health considerations
  • Schools and education
  • Public services and transportation
  • Recreation
  • Consumer goods
  • Housing
  • Natural environment

Cities the report covered:

Java

  • Bandung
  • Bekasi
  • Bogor
  • Cilegon
  • Cirebon
  • Jakarta
  • Malang
  • Semarang
  • Surabaya
  • Tangerang
  • Yogyakarta

Sumatra

  • Banda Aceh
  • Bandar Lampung
  • Batam
  • Batang
  • Jambi
  • Kendal
  • Medan
  • Padang
  • Palembang
  • Pekanbaru
  • Surakarta
*to be confirmed

Kalimantan

  • Balikpapan
  • Banjarmasin
  • Kutai Kartanegara*
  • Palangkaraya*
  • Pontianak
  • Samarinda
  • Tarakan*

Sulawesi

  • Kendari
  • Makassar
  • Mamuju
  • Manado
  • Palu

Others

  • Ambon
  • Denpasar
  • Jayapura*
  • Kupang
  • Mataram
  • Timika

Flexible pricing options: choose the right report package for your needs

 
Package 1-10 cities 11-20 cities 21-31 cities All cities bundle
2025 Indonesia Cost of Living Reports

IDR 9,250,000 per city

IDR 8,500,000 per city

IDR 8,100,000 per city

 

IDR 225,000,000 (full coverage of all cities)
2025 Indonesia Quality of Living Reports IDR 5,800,000 per city IDR 5,500,000  per city IDR 5,200,000 per city IDR 160,000,000 (full coverage of all cities)
2025 Indonesia Cost and Quality of Living - Bundled IDR 13,900,000 per city IDR 12,900,000 per city IDR 12,250,000 per city IDR 345,000,000 (full coverage of all cities)
Receive a special price as a participant in our Total Remuneration Survey. 
Click here to view the pricing.

Let’s get started

For further information, or if you wish to see a sample of the report, please contact us.