Is Indonesia Expensive?

“The nation where falling in love is unavoidable because of the friendly locals, friendly native tribes, breathtaking scenery, delicious cuisine, and distinctive customs.”

Indonesia is a stunning island nation that has magnificent beaches, crystal clear waters, and expansive jungles ripe for exploration. Officially known as the Republic of Indonesia, this island paradise lies between the Indian and Pacific Oceans. It consists of five main islands and around 30 smaller archipelagos, totalling about 18,110 islands and islets, of which approximately 6,000 are inhabited. Major islands include Sumatra, Java, Sulawesi, and parts of Borneo and New Guinea. As the world’s largest archipelagic state and the 14th largest country by area, Indonesia spans 1,904,569 square kilometers (735,358 square miles). With a population of approximately 280 million, it is the most populous Muslim-majority country and the fourth most populous nation globally. More than half of its population resides on Java, the world’s most populous island.

Indonesia offers an affordable destination for travelers with a wide variety of experiences. Whether you prefer relaxing on Bali’s many beaches, exploring the bustling metropolis of Jakarta, or trekking through Sumatra’s jungles, there is something for everyone. The Travel and Tourism Development Index 2024 ranks Indonesia 22nd out of 119 countries, with a score of 4.46 on the Travel and Tourism Competitiveness Index. This marks significant progress from its 2019 ranking, where Indonesia was 40th out of 140 countries, with a score of 4.3.

Indonesia is also known for its unique and fascinating facts. It is home to giant dragons (technically lizards), has the third highest number of volcanoes in the world, and grows the largest flower globally. The country is a linguistic treasure trove, with a multitude of languages spoken across its islands. Recognized as a biodiversity hotspot, Indonesia boasts the world’s second-largest coastline. It is also the habitat of the orangutan and houses the largest gold mine in the world. Let us explore, weather this island nation is expensive or cheaper to explore.

Cost of Living in Indonesia 

Indonesia is a lower-middle-income country, making the overall cost of living significantly lower than in Western countries. Major cities have higher living costs compared to rural areas. Jakarta, the bustling capital, has a lower general cost of living than major Western cities, although this varies greatly according to lifestyle. On average, living in Jakarta is 60% cheaper than in London or New York, 40% less than in Berlin, and 50% less than in Melbourne. It is also more than 50% cheaper than living in Singapore and has a similar overall cost of living to Kuala Lumpur in Malaysia and Manila in the Philippines. Residing outside Jakarta further reduces living costs significantly. For instance, Bandung, also on the island of Java, is around 25% cheaper than Jakarta, Medan in North Sumatra is about 10% less, and Denpasar in Bali is approximately 15% cheaper than Jakarta.

Public transportation in Indonesia is inexpensive (albeit congested), with individual journeys costing around $0.25 and monthly passes approximately $12. Taxis are similarly affordable, but Jakarta’s heavy traffic often results in long travel times. Walking is a viable alternative to avoid traffic delays, except during the rainy season.

While the general cost of living is lower, imported goods and luxury items are expensive, often more so than in the West. Some department stores in Jakarta sell Western goods, cosmetics, and toiletries, but these come at a high cost. Certain items that expatriates are accustomed to may not be easily available, even in large department stores. It is important to note that due to the country’s vast and varied geography, the cost of travel within Indonesia can vary significantly depending on the destination. For example, costs in Bali or Jakarta are much higher than in less popular destinations like the Togean Islands. 

Budget Options for Travelers

A true budget backpacker will rarely need to spend more than twenty-five US dollars per day in Indonesia. To make the most of your trip to this Muslim country, eat cheap street food, stay in large dorms, and avoid alcohol. This budget allows you to take advantage of popular tours without breaking the bank.

For those looking to live it large on a backpacker’s budget, spending between thirty-five to fifty dollars per day provides a mix of dorms and private rooms. You will primarily buy street food, with the occasional restaurant meal. This budget also allows you to enjoy a drink on occasion while covering the costs of trips, tours, and transportation.

Flashpackers, who can spend between fifty to seventy-five dollars per day, will find that there is very little out of their budget range in Indonesia, as long as they avoid the super-expensive resorts. This budget allows for tours, private rooms, and unlimited food and alcohol.

When it comes to street food in Southeast Asia, Indonesia never disappoints. A basic plate of rice or noodles costs as little as seventy-five hundred rupiah (50 cents), while an amazing platter with more food than you could possibly need costs over twenty thousand rupiah ( one point three dollar). Whole grilled fish costs approximately sixty thousand rupiah (4 dollars). Restaurant food in Indonesia is more expensive than street food but still affordable. A great meal in a low-cost restaurant can be for the low end of this range, while a more upscale dining experience might cost around hundred thousand rupiah (six point five dollars). Western cuisine is slightly more expensive and can easily exceed the upper limit of this spectrum.

Indonesian tap water is treated at the source, but the infrastructure that transports it can allow contaminants in. For safety, it’s advisable to boil tap water before drinking. Bottled water is widely available and affordable, with prices ranging from 30 cents to 2 dollars per litre depending on the location.

Indonesia offers excellent hostels, with dorm beds available for as little as 2 dollars to 5 dollars per night. More expensive options can go up to 20 dollars per night, but budget travelers can usually find comfortable accommodations without spending much. For those seeking more privacy, private rooms in hostels start at around 5 dollars per night for basic accommodations with shared facilities. More comfortable rooms with private bathrooms and air conditioning range from 15 dollars to 30 dollars per night and often include breakfast. Indonesia also offers a range of budget-friendly hotel rooms, starting at around 4 dollars per night for basic accommodations. For a more comfortable stay, prices can reach 40 dollars or more. High-end resorts are available for those willing to spend more, but they are not typically aimed at backpackers.

Taxis in Indonesia are reasonably cheap and safe. Local bus fares are very affordable, typically costing less than a dollar. It’s cheaper to buy tickets on the bus rather than from ticket windows. Long-distance buses are a cost-effective way to travel between Indonesia’s larger islands. Prices vary based on distance, location, and bus quality.

Affordability Ranking 

One of Southeast Asia’s most reasonably priced travel destinations is Indonesia. Budget-conscious tourists and expatriates alike frequently choose Indonesia because of its consistently low cost of living, as indicated by a number of affordability rankings. Compared to other nearby travel locations such as Cambodia and Vietnam, Indonesia often provides more reasonably priced lodging, dining, travel, and entertainment options. Although Vietnam and Cambodia are also renowned for being affordable, Indonesia’s wide range of islands and tourist destinations, including Bali, Yogyakarta, and Lombok, offer a variety of experiences at reasonable costs. Because of its affordability, stunning natural surroundings, and rich cultural legacy, Indonesia is becoming an increasingly popular travel destination for budget-conscious travelers.

It’s important to consider the range of experiences and different prices of living and travel when comparing Indonesia with Cambodia and Vietnam. Cambodia offers many mid-range vacation options and is very affordable, especially due to the famed Angkor Wat. Vietnam is known for its energetic cities like Hanoi and Ho Chi Minh City, as well as its breathtaking natural settings like Ha Long Bay. While Vietnam is also fairly affordable, it can be slightly more expensive than Indonesia in some locations, particularly when it comes to mid-range and luxury lodging.

When it comes to transportation, Indonesia offers reasonably priced options like budget planes, buses, and trains that make getting between cities and islands affordable. Within cities, ride-hailing services and public transit are also cost-effective. Indonesia is one of the most affordable and desirable travel destinations in Southeast Asia for those wishing to explore a lot without breaking the bank. This is due to the country’s abundance of inexpensive lodging options, its rich cultural diversity, and stunning natural surroundings, making it a top choice for budget-conscious travellers.

Beyond Bali 

“The beauty of this Island is Un-BALI-vable”

Due to its affordability, which extends far beyond Bali, Indonesia is an excellent option for tourists on a tight budget. While Bali is renowned for its vibrant culture, stunning beaches, and reasonably priced luxury, other lesser-known destinations in Indonesia offer even more attractive costs and unique experiences. For example, Yogyakarta, often referred to as Java’s cultural center, is not only incredibly affordable but also rich in culture and history. Here, you can explore historic temples like Prambanan and Borobudur, admire locally made handicrafts, and savor delicious Javanese cuisine at very reasonable prices. Yogyakarta provides exceptional value for money, often being cheaper than Bali for accommodation, dining, and transportation.

Lombok is another fantastic destination with pristine beaches, crystal-clear waters, and exciting hiking opportunities, such as climbing Mount Rinjani. Because Lombok is generally less commercialized than Bali, visitors can enjoy more affordable lodging and activities, as well as a more relaxed atmosphere. Another gem where travelers can find affordable prices combined with stunning natural beauty is Sumatra. Travel options in Sumatra are diverse and economical, ranging from the serene Lake Toba to the orangutan sanctuaries in Bukit Lawang.

Exploring the lesser-known islands of the Indonesian archipelago, such as Flores, Sulawesi, and the remote Raja Ampat, can also be much more affordable. These locations often offer breathtaking landscapes, abundant marine life, and rich cultural traditions at a fraction of the cost of more developed tourist spots. Although Bali is a fantastic destination, Indonesia has much more to offer in terms of affordable travel and a wide variety of attractions. 

End Note

In essence, Indonesia stands out as an exceptionally affordable and diverse travel destination, offering experiences that extend far beyond the well-known attractions of Bali. From the cultural richness of Yogyakarta to the natural splendor of Lombok and Sumatra, travelers can explore a myriad of affordable options across the archipelago. While Bali remains a popular choice, venturing beyond reveals even greater value for budget-conscious travelers seeking unique cultural encounters and stunning landscapes. Indonesia’s affordability, combined with its rich heritage and natural beauty, makes it a top pick for those looking to explore Southeast Asia without breaking the bank.