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Pros and Cons of Moving to Indonesia

With over 17,500 islands, Indonesia is the world’s largest archipelago. This culturally diverse corner of South-East Asia maintains a rich tradition of music, art, dance, storytelling and craft and offers a rich and varied lifestyle for expats.

 Like any other destination, there are challenges to overcome, but with an open mind and a sense of adventure, the rewards of living in this enchanting archipelago are countless. Below is our list of some of the pros and cons of moving to Indonesia.


Lifestyle in Indonesia

+ PRO: Vibrant nightlife and entertainment

The nightlife in Indonesian cities is vibrant and varied, so it’s not difficult to have a good time if one knows where to look for it. In Jakarta, the cultural side of life is rich with regular art shows, live music, and film festivals. International rock bands and famous singers regularly perform gigs hosted in the city.

Despite alcohol being costly, it's only banned in part of the country – Aceh, the westernmost province. Elsewhere, particularly in Jakarta, there are many popular bars and clubs to choose from, not to mention plenty of excellent places to eat and drink or relax with a coffee. Indonesian food is exquisite and varied enough to cater to everyone’s dietary needs. If expats find themselves craving Western fast food, there are the usual American fast food joints dotted around most cities, and international food is available in all the major tourist spots.

- CON: Cultural norms

Western expats in Indonesia will find themselves having to adjust to and respect the local customs. Islam is the majority religion and carries a conservative culture that may be difficult for expats to understand. The dress code is more modest than what some expats may be used to, and it’s best to wear loose-fitted clothing and cover the knees and shoulders.

+ PRO: Expat organisations

For expats, especially women who feel isolated from their compatriots, there are a number of well-run and established organisations which host meetings, events and talks. They offer support and can give help and advice on any number of issues that may arise.

There are also various organisations that expats can join and volunteer with if they would like to support one of the many charities that work in Indonesia. The very young, the elderly and the sick are particularly vulnerable.

- CON: Social inequalities and poverty

The economic disparity and the challenges faced by underprivileged communities in Indonesia might be eye-opening for expats, particularly those from more affluent regions of the world. It's an aspect of life in Indonesia that invites a deeper understanding and empathy towards the varying socioeconomic conditions present in the country, and coming to terms with this inequality can evoke strong feelings and significant discomfort. 


Accommodation in Indonesia

- CON: Overcrowding

Finding accommodation in Indonesia, especially if spacious living is a priority, is difficult.  Most people opt to live in apartments. Space comes at a premium in Jakarta, so expect to pay a lot more for a house with a garden. If choosing to live in an expat area, also be prepared to pay a lot more than if living among the locals. In major Indonesian cities, traffic can be horrific, so, ideally, expats should try to live somewhere that is as close to work as possible. 


Healthcare in Indonesia

+ PRO: Decent healthcare

Most minor medical emergencies can be handled from within Indonesia. For any severe emergencies, Singapore, which has world-class medical facilities, is just a two-hour flight away. Good private dentists are available in Indonesia, and dental costs are usually cheaper than what one would expect to pay in North America or Western Europe. 

- CON: Poor sanitation

Expats might encounter some health challenges like stomach upsets or dengue fever, especially during the rainy season. It’s advisable to drink bottled water and exercise caution with street food, however tempting it may look or smell. Fresh juices are sold widely from carts on the roadside in Indonesia; they are often diluted with water of dubious origin and can cause serious illness.


Transport in Indonesia

+ PRO: Affordable taxis

Taxis are readily available and cost-effective, making them a popular choice for expats, and if tipped well, the driver will wait for passengers while they do their shopping. Additionally, hiring a driver is common in Indonesia for those who prefer a more convenient and familiar mode of transportation. A good driver is well worth the cost as they have knowledge of all the side streets to make travelling around more bearable. Having a driver in the West would be considered a luxury; here in Indonesia, it is a part of life for most expats with a stable income.

- CON: Traffic congestion

One of the most significant disadvantages of living in Jakarta is the traffic. With over 12 million people using the city’s roads daily, congestion is a nightmare, and traffic jams are a normal part of life. The pollution generated by the exhaust fumes hangs like an umbrella over the city, and the public transport system leaves much to be desired. Motorcycle taxis known as ojeks are good, but not always ideal if it’s pouring with rain or if one has shopping bags to carry.


Cost of living in Indonesia

+ PRO: Cheap food, communications and household help

Eating out is very cheap if alcohol is not included. Shopping for local fresh produce in the markets and warungs is fun, and there are great bargains to be found. If buying locally and skipping the supermarkets, one can live well and very cheaply. 

Mobile phone tariffs are good value, and broadband or cable is easily installed and not expensive. To hire household help of any kind, be it household staff, a gardener, driver or nanny, the cost is considerably cheaper than in Western European and North American countries. Textiles are abundant in Indonesia and are considered cheap. By finding the right tailor, made-to-measure clothes become a way of life.

- CON: Expensive imported products

The cost of living does vary depending on what one buys, though. In general, any imported goods are much pricier than Indonesian products.

Shopping for food in the supermarkets, especially Western-styled ones, can be costly. Electricity bills can be disproportionately high, and for people who are used to getting visits to the doctor and certain medicines for free, healthcare will need to be accounted for in the budget.

Embassy Contacts for Indonesia


Indonesian embassies

  • Indonesian Embassy, Washington DC, United States: +1 202 775 5200
  • Indonesian Embassy, London, United Kingdom: +44 20 7499 7661
  • Indonesian Embassy, Ottawa, Canada: +1 613 724 1100 
  • Indonesian Embassy, Canberra, Australia: +61 2 6250 8600
  • Indonesian Embassy, Pretoria, South Africa: +27 12 342 3350
  • Indonesian Embassy, Wellington, New Zealand: +64 4 475 8699

Foreign embassies in Indonesia

  • United States Embassy, Jakarta: +62 21 5083 1000 
  • British Embassy, Jakarta: +62 21 2356 5200
  • Canadian Embassy, Jakarta: +62 21 2550 7800
  • Australian Embassy, Jakarta: +62 21 2550 5555
  • South African Embassy, Jakarta: +62 21 2991 2500
  • New Zealand Embassy, Jakarta: +62 21 2995 5800

Healthcare in Indonesia

The standard of public healthcare in Indonesia varies, and most expats in the country choose to make use of private healthcare throughout their stay in the country. 

Expats are not covered under the Indonesian universal healthcare scheme. Comprehensive medical insurance is essential for expats moving to Indonesia, and it's a legal requirement for those living there on a retirement visa.


Public healthcare in Indonesia

Healthcare facilities in Indonesia are limited, with the best facilities found in and around Jakarta. The standard of local medical care can be poor, and public hospitals, especially those found in the capital, tend to be overcrowded, and waiting times will be long.

While expats can be treated in local public hospitals, doctors and staff will most likely be Indonesian, and there can be no guarantee that they will speak English, so communication may be an issue. Foreigners are not included in the national health insurance scheme, so doctors and public hospitals will likely expect payment in cash upfront.

For these reasons, expats in Indonesia tend to opt for private healthcare, which is relatively expensive but offers far better facilities and coverage.


Private healthcare in Indonesia

The quality of public healthcare in Indonesia is not up to the standard that many Western expats may be used to. Although private medical care in Indonesia is expensive, it is the option best suited to the needs of most expats.

Private healthcare facilities usually boast superior amenities, and expats making use of these are far likelier to encounter English-speaking staff. Many expats travel to neighbouring countries with better medical facilities, such as Singapore or Thailand, for serious routine or planned procedures.


Health insurance in Indonesia

Most companies will provide comprehensive medical insurance for their expat staff. Before setting off for Indonesia, expats should check their contracts to see whether the health insurance policy is adequate for their needs and those of family members.

As most expats and wealthy Indonesians often go to Singapore to access better medical care for more serious conditions, expats should ensure the company’s health insurance policy covers international medical evacuation as well as treatment in Singapore.


Pharmacies in Indonesia

Pharmacies in Indonesia are known as apotik and can easily be found in the large shopping malls scattered throughout all major cities. The main pharmacy chains include Century Healthcare, Guardian and Apotik Melawai. Pharmacies can also be found in most hospitals and medical clinics, although expats will need a prescription from a doctor at that particular practice as they don't tend to fill prescriptions from elsewhere.

Pharmacies in Indonesia sell a wide range of prescription and over-the-counter medications and usually have an on-site pharmacist to assist customers with any drug-related questions. Again, expats should be aware that, generally, Indonesian pharmacists know little English, so foreigners may have trouble communicating with them.


Health hazards in Indonesia

Due to Indonesia’s tropical climate, malaria can be an issue. However, it is not typically a problem in the country's major urban hubs like Jakarta and Bali. If based in rural areas such as Sumatra, Sulawesi and Kalimantan, expats should be on a course of anti-malarial medication.

The air quality in Indonesia’s main cities, especially Jakarta, is poor. This can be a particular issue for those who have asthma, so it is advised that expats have the necessary medication and their inhalers on hand.


Vaccinations for Indonesia

With its tropical climate and diverse environments, Indonesia can expose expatriates and travellers to various infectious diseases. Obtaining the right vaccinations before travelling is crucial to ensure one's health and safety. 

Common vaccinations recommended include hepatitis A and B, typhoid, Japanese encephalitis, rabies, and routine immunisations such as measles, mumps and rubella (MMR), and diphtheria, tetanus, and pertussis (DTAP). It's advisable for expats to consult with a healthcare provider to tailor the vaccinations based on individual health conditions, the duration of stay and the specific areas within Indonesia they plan to visit.

It’s also prudent to have these vaccinations well before travelling, as some vaccinations require a series of doses spread over time to be effective. Prospective travellers should also be informed of the health risks in the areas they plan to visit and take necessary precautions. For instance, although malaria is not prevalent in major cities like Jakarta and Bali, it is present in rural areas.


Emergency services in Indonesia

Indonesia does not have a national emergency medical service. Public hospitals have ambulances, but staffing and equipment are not of a high standard. Expats should identify private ambulance services available in their area. The general emergency number is 112.

Public Holidays in Indonesia

 20242025
New Year’s Day1 January1 January
Chinese New Year9–10 February29 January
Ascension of the Prophet Muhammed8 February27 January
Hindu New Year11 March29 March
Good Friday29 March18 April
Easter Sunday 31 March20 April
Eid al-Fitr10 April–11 April31 March–1 April
Labour Day1 May1 May
Ascension Day of Jesus Christ9 May29 May
Pancasila Day1 June1 June
Waisak Day23 May23–24 May
Eid al-Adha17 June12 May
Islamic New Year7 July26–27 June
Independence Day17 August17 August
Prophet Mohammed’s Birthday16 September5 September
Christmas25–26 December25–26 December

*Islamic holidays are subject to change based on the lunar calendar.

Banking, Money and Taxes in Indonesia

Banking for expats in Indonesia could be an exercise in patience, but once they become more accustomed to how things are done, it will become easier to navigate the financial side of life in Indonesia.

The procedures involved in the Indonesian banking system might seem a tad unconventional, particularly for those accustomed to Western banks’ digital swiftness. Nevertheless, Indonesia is steadily catching up, with mobile banking and online facilities emerging as standard features. As with everything in this vast archipelago, patience and perseverance pave the path to a smooth banking experience.


Money in Indonesia

The official currency in Indonesia is the rupiah (IDR), which is divided into 100 sen.

  • Notes: 2,000 IDR; 5,000 IDR; 10,000 IDR; 20,000 IDR; 50,000 IDR and 100,000 IDR
  • Coins: 100 IDR, 200 IDR, 500 IDR and 1,000 IDR

Banking in Indonesia

Many expats often wonder how to navigate the banking system in Indonesia, especially when they’re just starting. There are plenty of banks for them to choose from, both local and international. Expats can choose whether to open an account in rupiah or US dollars. Some other foreign currencies are also provided for. Savings accounts, cheque accounts, foreign exchange, debit cards and credit cards are all available in the country.

For many newcomers, understanding how to open a bank account in Indonesia can seem daunting, but the process is usually straightforward. Upon selection of the bank, an initial deposit is generally required. Once the account is open, online banking, mobile banking and a passbook, if required, are provided.

Most of the staff at international banks in Indonesia will be able to speak English. The documents required to open a bank account in Indonesia can vary but typically include proof of employment, passport and residence permit.

It’s recommended to prepare the following documents before opening an Indonesian bank account:

  • Passport: Original and a photocopy of the applicant’s passport with at least six months’ validity.
  • ITAS (Temporary Stay Permit Card): This permit indicates that the holder is allowed to stay in Indonesia. Both the original and a copy will be needed.
  • Reference letter: A letter from the applicant’s employer or sponsor in Indonesia confirming their employment or sponsorship status.
  • Proof of address: This could be a utility bill, rental agreement, or a letter from the employer confirming the residence address.

Although each bank has its own process, the following process is generally followed:

  1. Selecting the bank: Research and choose a bank based on personal preferences, available services, and recommendations. Local and international banks are available, each offering various services.
  2. Submitting documents: Hand over the necessary documents listed above. The bank representative might also request additional documents based on specific bank policies.
  3. Verification: The bank will process and verify the submitted documents. This can take anywhere from a few hours to a few days, depending on the bank’s procedures and the completeness of the documentation provided.
  4. Visiting the bank branch: While some preliminary steps might be taken online, a visit to the bank in person is typically required to finalise the account opening process.
  5. Account activation: The bank account will be activated once verification is complete. The account holder will receive the banking instruments like a chequebook, debit card and access to online banking, if applicable.

It’s always prudent to check with the chosen bank beforehand to clarify any specific requirements. Given the dynamism of banking policies, being prepared can considerably simplify the account opening process.

See the Financial Services Authority of Indonesia’s website for banking procedures and regulations.

ATMs and credit cards

Indonesia’s ATM network is quite expansive, making cash withdrawals convenient. It’s worth noting that there’s often a withdrawal limit per transaction, usually set at 1,000,000 to 2,500,000 IDR, depending on the bank. Charges may apply for using an ATM outside one’s bank network.

Credit cards, notably Visa and MasterCard, are widely accepted in urban areas and tourist spots. However, it’s best to carry cash for more remote locations or smaller businesses. Also, it’s always a good practice to inform one’s bank of travel plans to avoid any unexpected account freezes.


Taxes in Indonesia

Residents of Indonesia are taxed on their worldwide income, while non-residents are only taxed on their Indonesian income. Taxes for expats can be complex, so we advise hiring a tax professional familiar with local and global tax regulations to assist. 

Due to extensive social programmes and a high tax rate, the long and short is that high-earning expats should budget to pay about one-third of their income in taxes and contributions, not counting other taxes like VAT and LST.

Reductions and contributions

Employers in Indonesia are required to contribute 2 and 4 percent of an employee's income to pension and healthcare respectively. Employees contribute 1 percent to each. Additionally, employers will contribute roughly 10 percent of the employee's salary to a social insurance scheme.

Personal income tax

Taxation in Indonesia is based on the principle of residency. Expats living and earning in Indonesia will need to understand their tax obligations, and it’s essential to file returns on time to avoid any penalties.

Expats who stay in Indonesia for more than 183 days in a 12-month period are considered tax residents of Indonesia. Income tax rates in Indonesia range from 5 to 35 percent for residents, depending on an individual’s net income. Non-residents, meaning foreigners who spend less than half of the year in Indonesia, are taxed at a flat rate of 20 percent of their Indonesian income.

Other taxes

Other than income tax, there are also additional taxes such as value-added tax (VAT) and luxury-goods sales tax that one might encounter. It’s prudent to keep abreast of these to avoid any pitfalls. VAT is a consumption tax imposed on most goods and services in Indonesia, and will usually be factored into products' prices on the shelf. From 2022, VAT has been set at 11 percent, and this is expected to rise to 12 percent from 2025.

Luxury-goods sales tax (LST) is applied to certain high-value items, including some real estate, automobiles and alcohol, among others. LST ranges from 10 percent to 125 percent, depending on the good.

For a comprehensive guide on the Indonesian taxation system, visit the Directorate General of Taxes website.

Transport and Driving in Indonesia

Traffic in Indonesia, especially in major cities like Jakarta and Bali, is chaotic, and driving can be a unique experience for expats – and even the most experienced city drivers. Luckily, private drivers are affordable and are a popular option among expats in Indonesia. Indonesia also has a relatively good public transport system, and taxis are readily available in larger cities.


Public transport in Indonesia

Indonesia has a decent public transport system, although taxis are probably the better option for short distances and trains over long distances.

Over the years, public transport has seen improvements in Indonesia. This comes with the government's push to make commuting more efficient and eco-friendly. The rise in infrastructure projects has also added to the convenience. However, expats should be prepared for crowded conditions during peak hours.

Trains

Indonesia’s railway system, featuring commuter and intercity trains, spans four primary networks in the regions of Java and Sumatra. Indonesians mainly use trains for long-distance travel. There is a commuter train service in Jakarta called the KRL Commuterline. Expats can purchase tickets at train stations or buy them online.

See the official KRL Commuterline website to access routes and tickets.

Buses

For daily commuting, buses remain the top choice for public transport among Indonesians and expats in Indonesia. There are frequent bus services in Sumatra, Java and Bali. In the more remote areas, there are minibuses that provide transport. Jakarta has its own bus rapid transit system known as TransJakarta.

For more information, visit TransJakarta.

Ferries

Given Indonesia's vast archipelagic nature, island-hopping by boat or ferry is a common travel method. There are frequent ferries between the islands, particularly between Sumatra, Bali and Java. Expats can also use ferries to travel to nearby countries like Malaysia and Singapore.


Taxis in Indonesia

Most large cities in Indonesia have numerous taxi companies to choose from. Expats should always request that the meter be turned on when getting into a taxi to avoid being overcharged. Expats who are not familiar with the local language can make use of ride-sharing services such as Grab to avoid miscommunications with drivers.

Adventurous alternatives to traditional taxis include ojeks (motorcycle taxis), bajaj (motorised auto rickshaws) and becaks (pedal-powered rickshaws).

Useful links


Driving in Indonesia

For locals and internationals alike, road transport remains the primary mode of travel in Indonesia, from bustling cities to serene countryside. There has been a massive growth in the number of motor vehicles in the country in the last decade, but the government has not been able to construct new roads fast enough to keep up with the demand. Traffic jams are therefore a problem, particularly in Jakarta and Bali.

Many embassies advise their nationals against driving in Indonesia, and many expats choose to hire a private driver or use taxis instead. Foreigners also often choose motorbikes as their primary means of transport, although this can be a dangerous option.

To drive in Indonesia, expats must apply for an Indonesian driving licence, which is called a SIM (Surat Izin Mengemudi). Those wanting to drive a motorcycle will need a separate licence called a SIM C. Expats will have to pass a written test to obtain a SIM.

Useful links


Air travel in Indonesia

With a plethora of domestic airlines and routes, air travel often emerges as an economical and time-saving mode of transport across Indonesia's vast landscape. There are many domestic airlines to choose from, and all of Indonesia’s major cities have airports. The country’s main airport is Soekarno-Hatta International Airport in Jakarta, and the national air carrier is Garuda Indonesia.

Useful links

Visas for Indonesia

The visa system for Indonesia is complicated, and policies and procedures may vary across different regions, so there is often confusion about applying for the correct visas or permits for Indonesia. 

Due to the intricate nuances associated with Indonesia's visa system, many find themselves in a tangle of bureaucracy. Different regions within the country can have varying regulations, adding layers of complexity to the visa application process.

This guide seeks to provide an overview of tourist and residence permits in Indonesia. That said, it's always wise to touch base with an Indonesian embassy nearby, as the country is known to amend its visa regulations from time to time without significant prior notice.


Tourist visas for Indonesia

Jet setters keen on exploring Indonesia for a short spell will likely require a tourist visa. Nationals of many countries will be able to obtain this visa at the airport on arrival in Indonesia as long as they can produce an onward or return plane ticket. Visitors must also hold a passport that is valid for at least six months from their date of departure from Indonesia. 

Standard tourist visas allow a stay of up to three months, while tourist visas obtained on arrival allow for a stay of up to 30 days. Both types of tourist visa can be extended.

Expats planning to do business in Indonesia will need to apply for their visit visa ahead of time. During the application process, they will need to submit documents from the companies involved stating the nature of the business to be conducted.

Visitors from Brunei, Cambodia, Laos, Myanmar, the Philippines, Singapore, Thailand and Vietnam are eligible for tourist visa exemption.

The Indonesian Directorate General of Immigration is the official platform to delve deeper into visa regulations and requisites. For those applying for a visa ahead of their visit, Indonesia.travel outlines the e-visa application process.


Residence permits for Indonesia

Limited stay permit

Expats intending to stay in Indonesia for a period beyond that covered by a tourist visa will need to obtain a limited stay permit, also called an ITAS (Izin Tinggal Terbatas). The ITAS is valid for six to 12 months for foreigners employed in Indonesia. An ITAS can be renewed for the same period it was initially granted. This can be done for a total of up to four times.

For a deeper understanding of the ITAS and its nuances, visiting the Indonesian Ministry of Foreign Affairs website could provide valuable insights.

Permanent stay permit

After an expat has been in Indonesia for five years on a limited stay permit, they're eligible to apply for a permanent stay permit, also known as a KITAP (Kartu Izin Tinggal Tetap). Expats married to Indonesian nationals can apply for the KITAP after only two years.

Indonesia Travel provides extensive information for those looking to make Indonesia their permanent abode.

*Visa regulations are subject to change at short notice, and expats should contact their respective embassy or consulate for the latest details.

Renting accommodation in Indonesia

Expats have a wide variety of options when it comes to finding accommodation in Indonesia. Those relocating due to international job opportunities should ask their employer for assistance in finding accommodation. Employers might be able to recommend a good estate agent or assist expats in exploring various popular expat neighbourhoods to find out which one would suit their lifestyle and budget best.

Most expats opt to lease property in Indonesia rather than buy, mainly due to property ownership laws for foreigners. It’s technically illegal for foreigners to own land in Indonesia, although there are workarounds for those who want to stay in Indonesia for the long term. Buying property as a foreigner in Indonesia, like a house or apartment, is possible without owning the land it’s built on, but this process often requires guidance and can be complex.


Types of accommodation in Indonesia

In the bustling capital city, Jakarta, many upmarket apartment blocks cater to expat housing needs, offering good locations, excellent amenities and stylish interiors. Apartments are ideal for those who prioritise proximity to business districts. Securing accommodation close to the workplace can drastically reduce Jakarta's notorious traffic commuting hours.

Additionally, apartment blocks' strategic locations mean they are close to expat-friendly restaurants, shopping districts and nightlife, ensuring an active urban life for those who desire it. Whether they're a single professional or a family, expats will find a variety of apartment sizes in Indonesia's major cities, from modern studio flats to spacious five-bedroom units.

For those who wish for green spaces and quieter surroundings, the suburbs south of Jakarta are perfect. These areas offer spacious villas and better air quality, and they are often near top international schools in Indonesia. The choice ranges from detached homes to those in gated communities with additional security.

Townhouses in Indonesia are another viable option. These are a balance between bustling city life and peaceful suburban living. These semi-detached properties in gated estates often come with shared amenities like gardens and swimming pools.

Furnished or unfurnished

Expats have the choice between renting furnished or unfurnished properties in Indonesia. A furnished property typically comes with all essential furniture and appliances, making it a convenient option for those who don’t want the hassle of buying or shipping furniture. Unfurnished properties, on the other hand, are often cheaper, allowing tenants to personalise their space to their taste.

Short-term lets

For those on a temporary stay or still exploring different residential areas in Indonesia, short-term rentals are a convenient choice. They offer flexibility but might come with a slightly higher price tag.


Finding accommodation in Indonesia

When it comes to finding a place to stay in Indonesia, using a trusted estate agent can be invaluable. They will be familiar with local real estate regulations and can guide you through the nuances of the Indonesian property market. Those who are receiving help from their employer to find accommodation might not need to go through an estate agent.

Leveraging online property portals, expat forums and local classifieds can further assist in the search. 

Networking with the expat community in Indonesia can also provide invaluable insights and recommendations about certain areas and properties. It’s also worth considering renting a short-term property or staying in a hotel initially, allowing for time to explore different areas in person.

Useful links

  • PropertyKita: One of the largest property portals in Indonesia, with over 240,000 listings​​.
  • Lamudi: An online portal connecting property seekers with suppliers, covering residential and commercial properties.
  • 99.co Indonesia: A leading property portal in Indonesia, also associated with RumahDijual and Rumah123 portals​.
  • PropertyGuru: A notable portal operating in Indonesia, known for its extensive property listings.
  • Rumah.com: A PropertyGuru-owned portal offering various property listings in Indonesia.

Renting accommodation in Indonesia

Before finalising a rental agreement, it’s essential for expats to conduct a thorough property inspection, ensuring the living space matches their expectations and checking for any damage or issues. 

Whether they're signing a short-term or long-term lease, it's essential that all terms of the lease are transparent and understood by both parties to avoid potential disputes. Deposits, lease termination policies and other essential clauses should be discussed openly with the landlord or through the estate agent to avoid misunderstandings later on.

Leases

Lease agreements are usually negotiated directly with the owner of the property. We recommend that expats have a trusted friend or colleague who is fluent in Indonesian look through the contract to ensure a clear understanding of the agreement.

While most leases are for one year, shorter or longer durations can be negotiated. A standard practice in Indonesia is to pay the entire rental amount upfront, especially for longer lease terms.

It’s also crucial to ensure the contract notes the responsibilities of both tenant and landlord, such as who covers maintenance or repair costs.

Deposits

Expats will usually need to pay a year’s rent upfront, as well as a deposit of one month’s rent. It’s challenging but possible to find landlords willing to accept a smaller upfront payment, such as six months’ rent, along with the standard one-month deposit. Expats going this route should be prepared for the fact that they will have far fewer options to choose from and significantly less bargaining power when it comes to price.

Terminating the lease

If an expat wishes to terminate their lease early, it’s crucial to discuss the terms with the landlord in advance. Some contracts might have penalties for early termination, so it’s wise to clarify this point before signing.


Utilities in Indonesia

Generally, tenants bear the utility costs, and it's imperative to discuss and clarify these aspects during the rental negotiations. While security and safety are paramount, especially in urban areas, many properties come equipped with security measures. Ensuring a steady supply of essentials like electricity, water and gas, and understanding their billing processes can make the transition smoother.

Security

Security can be an issue in Indonesia, but crime is usually limited to theft and is not often violent or serious. Most apartment buildings will employ security guards and have extra security measures such as surveillance cameras in place. Unlike the other items in this section, the cost of security measures are likely to be for the landlord if already in place.

Electricity

Electricity in Indonesia is primarily provided by the state-owned company PLN. Expats should ensure their property's wiring can handle the electrical load of their appliances. Power outages can occasionally occur, so it might be worth investing in surge protectors.

Monthly bills can be paid directly at the PLN offices, through online banking, or even some convenience stores. It’s important to pay on time to avoid disconnection.

Gas

Households generally use bottled gas for cooking. It’s easy to find local distributors who can deliver new bottles and collect empty ones. Expats should check the gas connections for safety and ensure the property has proper ventilation.

Gas bills are not monthly but rather depend on usage. When the gas bottle is empty, it needs to be replaced, and the payment is made upon delivery of a new bottle.

Water

While tap water is available in many parts of Indonesia, it’s often not safe to drink directly. Most households either boil tap water or rely on bottled water for drinking and cooking. 

Perusahaan Daerah Air Minum (PDAM) are local government-owned water service companies in various regions across Indonesia. Monthly water bills are typically low and can often be paid in similar ways as electricity bills, either online, in person or at specific convenience stores.

Bins and recycling

Waste disposal and recycling systems vary across Indonesia. In urban areas, local authorities collect rubbish regularly. Recycling is not as widespread, and expats might need to seek out specific drop-off points for recyclables.

It’s a good practice to separate organic and non-organic waste, as some neighbourhoods have separate collection days for each type of waste.

Useful links

Work Permits for Indonesia

Acquiring a work permit for Indonesia can be difficult, as the rules change frequently. Most expats who are being transferred to Indonesia by their current company – or who have already secured a job in Indonesia before leaving home – will find that their employer undertakes most of the work permit application process on their behalf.

Expats will also need an ITAS (limited stay permit) to live in Indonesia. The permit's length of validity depends on individual circumstances but typically ranges from six months to two years. The ITAS can be renewed for up to five years. After five years, expats will be eligible for a KITAP (permanent stay permit).


Work visas (KITAS) for Indonesia

Obtaining a work visa, or KITAS (Kartu Izin Tinggal Terbatas), is a crucial step for expatriates planning to work in Indonesia. This visa serves as a temporary stay permit for foreigners, allowing them to legally hold a job in the country. The KITAS is usually sponsored by the employing company and is valid for a period of one year but can be extended annually. While the process can be bureaucratic and time consuming, having a reputable employer to back the application significantly eases the process.

There are different categories of KITAS depending on the nature of work and the duration of stay. For instance, there's a Professional KITAS for foreign workers employed by an Indonesian company and a Freelance KITAS for self-employed or freelance expats. 

Applying for a work visa

It's imperative to apply for the correct category to avoid any legal complications. Moreover, the Indonesian government has stringent regulations in place to ensure that foreigners do not take up jobs that can be performed by the local populace, making it essential for expatriates to possess specialised skills or expertise.

It is not advisable for expats to just arrive in Indonesia hoping to find a job. It is best to arrange a job and a sponsor before arriving in the country. The employer usually acts as the sponsor of the visa, and generally speaking, the company will sort out the paperwork and have agents who deal with the immigration office on behalf of the applicant.

The company must apply for government approval to hire a foreigner. Once the company has approval, they can apply for a work permit for their potential employee. Indonesian companies can only employ a certain number of foreigners and can only employ those who have specialised skills that aren't found in the local population.

*Visa and work permit regulations are subject to change at short notice, and expats should contact their respective embassy or consulate for the latest details.

Local culture in Indonesia

Expats arriving in Indonesia might experience something of a sensory overload. This is especially true for those moving to Jakarta, a big, bustling city with a population of more than 10 million. Poverty and poorer areas are a common sight in Indonesia and starkly contrast the more modern buildings that shape Jakarta’s skyline. These scenes are striking images of Indonesia’s diverse socio-economic landscape, with a spectrum of backgrounds and outcomes.

Traffic in most major Indonesian cities is a huge problem, and the congestion is among the worst in the world. However, initiatives like carpooling rules and constructing mass rapid transit systems are underway to alleviate the congestion. Cities are not pedestrian-friendly, and sidewalks are often uneven or obstructed by roadworks. Another significant adjustment for expats moving to Indonesia is the air quality in the cities. Pollution is a concern, particularly for those with respiratory conditions. 

On the plus side, the local culture in Indonesia is defined by an attitude of genuine friendliness and openness. As a result, expats should feel safe and welcome in their neighbourhoods, and making local friends is a great way to feel more at home. Crime statistics in Jakarta and other major cities indicate a relatively safe environment, particularly in neighbourhoods popular among expats.


Time in Indonesia

Time can be a flexible concept in Indonesian culture, so much so that the phrase "jam karet" (rubber time) has become famous in the country. Expats can expect meetings to be cancelled without notice and for business associates and local friends to be late often. This flexibility stems from the cultural emphasis on relationships and understanding over strict schedule adherence.

Indonesians are mostly relaxed about time and would rather spend extra time speaking to someone and building a relationship than being on time for their next meeting.


Language barrier in Indonesia

The official language of Indonesia is Bahasa Indonesia. English is also spoken, and Javanese is the most widely heard local dialect. Apart from Javanese, several regional languages like Sundanese and Balinese are spoken in different parts of the country. We recommend expats take the time to learn a few phrases in Bahasa Indonesia as it will make day-to-day tasks, like shopping or giving directions to a taxi driver, much easier. It's also a great way to build rapport with locals.


Meeting and greeting in Indonesia 

The most common greeting in Indonesia is a handshake, although this differs in certain circumstances and the interactions between genders.

Greeting etiquettes are deeply rooted in Indonesia’s cultural values of respect and humility. When a man is greeting a man, a handshake with the right hand is the most common. Handshakes are often accompanied by a slight bow of the head. Both men sometimes put their palms to their hearts after shaking hands as a sign of respect. When a woman is greeting another woman, a handshake is standard, but sometimes just a nod of acknowledgement is used. 

When men and women greet each other, handshakes are acceptable, but the man should always wait for the woman to initiate it. If a woman puts her hands in front of her chest in a prayer position, it means she would prefer not to shake hands. In this case, the man should return the gesture.


Communication in Indonesia

As in many Asian cultures, it is important for Indonesian people to ‘save face’. This means never publicly criticising or reprimanding someone. This custom also often results in Indonesians being quite vague if they have a problem or telling someone what they want to hear, even if they have no intention of following through. For instance, rather than a direct refusal, an Indonesian might say "maybe" or "we’ll see", prioritising harmony in interactions over the immediate goal.

Face-to-face interactions are highly valued, especially in the business world. Expats are more likely to get attention and results from a face-to-face business meeting than from an email or phone call. 


Bureaucracy in Indonesia

Even though Indonesia boasts a robust economy, bureaucratic red tape is still an issue that hampers economic growth and potential for investment. Besides slowing down day-to-day tasks, this bureaucracy also causes problems for expats trying to get entry visas or work permits for Indonesia. To navigate these bureaucratic intricacies, expats often find it beneficial to seek local guidance through friends, colleagues or professional services.


Religion in Indonesia

Indonesia has the world’s largest population of Muslims. While foreigners would do well to dress modestly and respect Muslim customs, religious differences shouldn’t affect their day-to-day lives too much.

There are also significant Hindu communities in areas like Bali, as well as Christian and Buddhist populations. Awareness of major religious holidays, such as Eid for Muslims or Nyepi for Hindus, can also aid in understanding local customs and planning one’s activities.

Safety in Indonesia

By and large, Indonesia is a safe destination for expats, assuming they stay informed and aware of their surroundings. While there are some aspects of safety and security that expats worth bearing in mind, most visitors and residents spend their time in Indonesia without incident.

Natural disasters, including earthquakes and flooding, can occur. Other risks to be aware of include petty crime and, in rarer instances, terrorism. 


Crime in Indonesia

Petty crime rates in Indonesia are relatively high, particularly in busy urban areas. Pickpocketing is widespread, as is bag-snatching, which is often done from the back of a motorbike. To reduce the risk of being a victim of such crimes, expats can take some simple steps. This includes carrying as few valuables as possible, being aware of one's surroundings, and wearing a secure bag that cannot be snatched from the shoulder.

ATM fraud is another possible issue, although most banks have taken steps to improve the security of their machines in recent years. When using any ATM, it is essential to check for any suspicious persons in the vicinity and inspect the device before use. Credit card fraud is also a concern, and it is recommended to use cash wherever possible. Expats should take extra care to monitor their accounts and inform their bank immediately of any unauthorised activity.


Road safety in Indonesia

Road accidents are a serious concern in Indonesia. Traffic is busy and chaotic, particularly in urban centres, and traffic rules are rarely enforced. Roads are overcrowded and it is common for motorbikes to overtake on both sides. Extreme weather conditions in the wet season and poor road conditions add to the problems. Expats who can afford to hire a local driver often find this a suitable solution to these difficulties.


Terrorism in Indonesia

Indonesia is a large country spread over thousands of islands, all with unique cultures and infrastructure. This can make advice about visiting the country as a whole difficult. Visiting Jakarta will be a very different experience from visiting one of the small islands. For example, Papua and West Papua are considered more dangerous for visitors than the rest of the country due to ethnic violence and political instability.

The Indonesian government has taken steps to fight terrorism, but attacks do happen. They are unpredictable, and places frequented by tourists and expats are at risk of being hit. These include foreign embassies, shopping malls, hotels, airports and popular tourist areas. It's essential to remain vigilant, particularly around holiday times.


Natural disasters in Indonesia

Indonesia is located on the Pacific 'Ring of Fire', and earthquakes and volcanic eruptions are frequent. As an archipelago, a high percentage of the land in Indonesia is located in coastal areas, so tsunamis resulting from large earthquakes can be catastrophic.

Flooding is also a problem during the rainy season, and flash floods and landslides occur frequently. Jakarta is hit particularly badly with flooding every year.

Expats should take heed of any weather warnings and ensure that they have safety measures in place in case of natural disasters.


Emergency numbers in Indonesia

  • General emergency number: 112
  • Police: 110
  • Ambulance: 118

Doing Business in Indonesia

With a population of more than 275 million people, around 300 different ethnicities and languages, and the largest Muslim population in the world, Indonesia provides a unique and diverse backdrop for doing business.

Indonesia is rich in natural resources, acquiring much of its wealth from gas, oil and other mining activities, while services comprise the majority of the country's GDP. Agriculture also plays an important role in the Indonesian economy.

Despite the positive aspects of Indonesia's business setting, an extremely complex and dynamic bureaucratic environment can be frustrating for expats doing business in Indonesia. Changes occur frequently, and it can be difficult to keep track of these. Nevertheless, expats who can be patient and learn the local style of doing business are sure to succeed in Indonesia.


Fast facts

Business language

Bahasa Indonesia is the main language in Indonesia. Although English is widely spoken by the younger generation, especially in Jakarta, having an interpreter or learning a few key phrases in the local language may be helpful. Dutch and many regional dialects are also spoken.

Business dress

Business attire is generally conservative. Suits and ties are appropriate for men in formal business situations, while long-sleeved batik shirts are also acceptable. Women should be well covered and not expose their shoulders or legs. Due to the heat, loose-fitting cotton fabrics are best.

Business hours

Office hours are usually 8am to 4pm or 9am to 5pm, Monday to Friday. Many offices are also open until about 1pm on Saturdays. Some offices may close for an extended period on Friday afternoons for Islamic prayers.

Greeting

A handshake is the standard greeting. Expats should always use the right hand to shake hands; the left is considered unclean. A slight nod of the head is also an acceptable greeting.

Gifts

Gift-giving etiquette may vary according to the specific ethnic group one is dealing with. Gifts are not usually opened when received, and alcohol and pork products should be avoided if the receiver is Muslim. Offer and receive gifts with the right hand only.

Gender equality

Indonesia is still a patriarchal society. Although women are not specifically targeted for discrimination in the workplace, men typically still tend to hold more senior positions and earn higher salaries.


Business culture in Indonesia

Indonesia is a key player in Southeast Asian trade. Cultural identities here have developed over centuries and have been influenced by Chinese, European, Indian and Arabic traditions. Identity in Indonesia is often formed by one’s ethnic group, family and place of birth.

Religious and cultural traditions also play an important role in Indonesian society. This is reflected in Indonesia’s business practices. Adapting to the business environment in the country may vary depending on the city or region in which one is operating. The ethnicity of the individuals one is doing business with may also play a role.

Communication

Bahasa Indonesia is the official language of Indonesia. English and Dutch are spoken in many business circles, particularly in Jakarta, while many indigenous languages are also spoken throughout the country. Expats would do well to learn a few key phrases and how to greet their Indonesian counterparts in the local language – this marks a great sign of respect.

Hierarchy

As with the wider Indonesian culture and society, Indonesian business culture is hierarchical, holding great respect for status. Decisions are made from the top down, although there are usually also group discussions. Titles are very important in Indonesian business circles. Indonesian associates should be addressed by their full title and name.

Saving face

Indonesians are generally friendly and hospitable people, and the concept of saving face should be noted. This concept is about avoiding shame and maintaining harmonious relationships. Indonesians are careful about how they communicate and often adopt an indirect communication style to avoid offending anyone. As a result, they may not always say what they mean. Even when someone says "yes", this may indicate that they hear what someone said rather than agreeing with it. This should be noted to avoid confusion when engaging in negotiations with Indonesian business associates.

Relationships

Doing business successfully in Indonesia frequently hinges on understanding that decisions might take a while, and many meetings may need to be arranged before a final agreement is made. Indonesians like to carefully consider any business proposition and place great emphasis on trust and relationship-building. Expats may find their Indonesian business associates are more interested in building personal relationships before entering business dealings.

Indonesians also generally prefer to maintain harmony, and one should always maintain a calm demeanour, speaking politely and respectfully during meetings. Trying to put pressure for the hard sell or raising one’s voice during negotiations is not likely to be met with success.


Dos and don’ts of doing business in Indonesia

  • Do exercise patience – Indonesians prefer to take their time and consider business propositions carefully
  • Do keep in mind the business etiquette in Southeast Asia; for instance, face-to-face meetings are valued more than written communications in Indonesia
  • Don't give or receive anything with the left hand – always use the right hand or both hands together
  • Don't stand with your hands on hips or arms folded as these stances are considered aggressive and rude
  • Do leave enough time to get to business meetings, especially in Jakarta and other larger cities, as traffic congestion is a constant hindrance
  • Do be respectful of Indonesian associates. Avoid applying pressure or being confrontational and speak gently in business meetings.

Moving to Indonesia

Indonesia is a colourful and marvellous country consisting of a vast archipelago stretching over more than 17,000 islands with an ethnically and culturally diverse population of over 270 million people. Most expats base themselves in the popular tourist hub of Bali or the sprawling metropolis of Jakarta, the country’s capital and economic, cultural and financial centre.

There are many pros and cons to moving to Indonesia, but with an open mind and a sense of adventure, the rewards of living in this enchanting archipelago are countless.

Living in Indonesia as an expat

With plentiful natural resources, the country's economy is largely based around gas, oil and other mining activities, and most expats moving to Indonesia do so in order to work in these sectors. Indonesia also has significant agricultural, manufacturing and tourism industries. Telecommunications and teaching English are other attractions for expats seeking work in Indonesia.

Indonesia is an exciting expat destination, but it’s certainly a country that is not without its challenges. For example, obtaining a visa or work permit can be a frustrating process riddled with bureaucracy. Even more frustrating for expats planning a move to or already living in Indonesia is the fact that the requirements and processes for obtaining a visa change constantly.

Cost of living in Indonesia

The cost of living in Indonesia can be inexpensive compared to life in many Western European and North American countries, but this can vary according to lifestyle. Living like a local and shopping at neighbourhood markets for fresh, seasonal goods is inexpensive. Opting for modern, fully serviced apartments and buying imported goods can significantly increase the cost of living. Ultimately, expats will have to decide what is most important to them and what fits into their budget.

Expat families and children

For expats bringing the whole family over to Indonesia, education will likely be their biggest expense. Numerous schooling options exist, but most expats look beyond public education due to the language barrier. Often, international schools provide expat children with a smoother path to settling into their new home as they continue with a familiar curriculum in their home language. There are several international schools operating in Indonesia, most of which are in Jakarta.

Indonesia’s healthcare sector is considered relatively underdeveloped, particularly outside Jakarta. Any severe medical conditions will likely see expats seeking medical attention outside the country, typically in Singapore. Increasing air pollution in Indonesian cities is a further health hazard.

Safety in Indonesia is more of a concern than in some of its neighbours, but the risks are mostly related to some key areas. With proper preparation, many expats and residents enjoy living in Indonesia with few if any problems.

Climate in Indonesia

With a hot and tropical climate, it may take a while for expats coming from cooler climates to get used to the humidity, which is present all year round. The wet and warm monsoon season can be uncomfortable. On the bright side, this climate allows the local greenery and island life to flourish, and there’s no shortage of good beach days.

Overall, while life in Indonesia may present some challenges, the adventurous expat with an open mind is bound to overcome them, reaping the rewards that this stunning archipelago has to offer.


Fast facts

Population: Nearly 280 million

Capital city: Jakarta 

Neighbouring countries: Indonesia has land borders with Malaysia on the island of Borneo, Papua New Guinea on the island of New Guinea and East Timor on the island of Timor.

Geography: Indonesia is an archipelago of over 17,000 islands, with the five main islands being Sumatra, Java, Borneo (known as Kalimantan on the Indonesian side), Sulawesi and New Guinea. Parts of Indonesia are quite mountainous, and much of the country is covered by dense tropical forests. Located along the Ring of Fire, the country has many volcanoes and is also subject to frequent earthquakes.

Political system: Unitary presidential constitutional republic

Major religions: Islam

Main languages: Bahasa Indonesia and English. There are hundreds of regional languages spoken across the country.

Money: The Indonesian rupiah (IDR) is divided into 100 sen. There are plenty of local and international banks in Indonesia, but many expats choose to maintain their existing bank accounts in their home country.

Tipping: Standard 10 to 15 percent in restaurants unless included as a service charge. Round up the bill for taxis and give slightly more for hired drivers.

Time: GMT+7 to GMT+9

Electricity: 230V, 50Hz. Plugs with two round pins are generally used throughout the country.

Internet domain: .id

International dialling code: +62

Emergency numbers: 110 (police), 118 (ambulance)

Transport and driving: Cars drive on the left-hand side of the road. Indonesia has an established public transport system. Taxis are also plentiful. Traffic can be brutal in Indonesian cities, and driving is best avoided; many expats hire a local driver instead.

Education and Schools in Indonesia

Expats have numerous options for education and schools in Indonesia. Parents can send their children to public, private or international schools. Most expat parents living in Indonesia opt for international schools. While they can be pricey, they allow expat children to continue with a familiar curriculum in their home language.

Compulsory education in Indonesia begins at age seven and lasts a total of nine years. During this time, public schooling is offered at no cost. A minimum of one year of Indonesian language study is required for a child to graduate from high school in the country, whether private, public or international. That said, no subject testing is completed in this language – only basic proficiency is required.

While international schools remain popular among expats, choosing a school often depends on various factors such as curriculum, location, cultural considerations and the child's educational needs in Indonesia.

Cultural immersion is a significant advantage of attending Indonesian public and private schools, providing students with an authentic Indonesian experience. This immersion can be instrumental for children in building relationships with local peers and understanding the country's rich culture and traditions.


Public schools in Indonesia

Public schools, administered by the local government, adhere to the Indonesian curriculum. In these schools, the teaching language used is Bahasa Indonesia, and local teachers teach every subject in the local language. Other indigenous languages are used in remote parts of the country.

The language barrier and inconsistent quality of public schools are the main reasons that expat children do not commonly attend public schools in Indonesia.

The challenges of Indonesian public education encompass the integration of modern teaching methodologies while maintaining traditional cultural values. The government continuously works to improve the quality of education through training programmes for teachers and updating the curriculum. Furthermore, many public schools are now trying to incorporate English as a second language in their curriculum to make students globally competitive.

Useful links


Private schools in Indonesia

Private schools in Indonesia often focus on a holistic approach, emphasising both academic and non-academic achievements. They usually incorporate extra-curricular activities, from arts to sports, allowing students to explore and hone their talents. The smaller class sizes compared to public schools allow individual attention, ensuring students get the necessary support.

Indonesian private schools generally offer a curriculum that both meets and exceeds the requirements of the Indonesian curriculum, sometimes taught in combination with the International Baccalaureate (IB). Many of these schools also teach in English.

Most of these schools cater for Indonesian students, with international students often making up only a tiny proportion of the school's student body. Indonesian private schools do accept expat children, and these schools are a more affordable alternative to international schools for expats who work for companies that do not cover education fees.

Useful links


International schools in Indonesia

Most expats in Indonesia send their children to international schools – these schools offer a foreign curriculum and are officially accredited by the relevant authorities in their home country. Tuition fees can be extremely high at international schools, with annual tuition rates varying depending on the school and the child's age. Many international schools also charge a non-refundable annual capital fee.

In a bid to regulate the quality of education in Indonesia, the government has introduced legislation that no longer permits schools to use the word 'international' in their title. This is to prevent low-quality schools from using the term merely to charge high fees. Most international schools are now classified as Satuan Pendidikan Kerjasama (SPK) – this roughly translates as collaborative schools. 

SPK schools are required to teach Indonesian civics, religion and language. In addition, they must allow Indonesian students to attend and employ local teachers to teach Indonesian subjects. Children at international schools are also now expected to take part in the national examinations that students at state schools undergo, in addition to the school's own examinations.

Finding an international school

There are many options for international schools in Indonesia, catering to expat students from several countries, including the UK, the US, France, Germany, India, Japan, South Korea, New Zealand, Russia and Singapore. Many of these schools also offer the International Baccalaureate (IB) programme alongside the sponsoring country's curriculum.

When considering international schools, parents researching education in Indonesia should consider the schools':

  • accreditation,
  • faculty qualifications,
  • facilities,
  • student-to-teacher ratio
  • and extra-curricular offerings.

It's also beneficial to get feedback from other parents or attend open days to experience the school's environment firsthand.

Useful links


Special-needs education in Indonesia

In public education, Indonesia has two types of schools catering for students with special needs: inclusive and extraordinary schools. Inclusive schools have a student body of special-needs and mainstream students, while extraordinary schools are dedicated exclusively to students with special needs. Unless expat families already speak Indonesian fluently, most opt for private schooling for their children with special educational needs.

It's worth noting that some international schools can provide the specialised services such a student would require, depending on the severity of the condition. This is usually for an extra fee but can be a good option for expat families.


Tutors in Indonesia

Tutors in Indonesia have become increasingly popular, especially among expat families. They can be a great help in giving expat children a leg up in adjusting to a new school, especially if an unfamiliar curriculum or new language is involved. Some expat families hire a tutor to help maintain a child's mother tongue or to help them learn and refine Indonesian or English quickly.

In the run-up to the final assessments, tutoring services for expats in Indonesia witness heightened demand as they are often hired to help students reach peak performance in the crunch period. Most tutors specialise in a particular subject, but some can help across the board, especially when it comes to teaching general essay writing and study techniques.

Useful links

  • Superprof Indonesia: A platform offering a wide range of private tutors for various subjects in Indonesia.

Working in Indonesia

Expats working in Indonesia will find themselves immersed in an exceedingly diverse business landscape, environment, rich in job opportunities across various sectors. With over 300 languages and ethnicities among a population of over 275 million, the professional culture varies widely across different Indonesian regions. 

As the country’s bustling commercial centre, Jakarta serves as the prime locale for job-seeking expats looking for promising career prospects.


Job market in Indonesia

Indonesia’s abundant natural resources offer plenty of work opportunities for expats with expertise in mining and construction, while agriculture remains a significant employer. Other important sectors of the Indonesian economy include textiles, electronics, and apparel and footwear manufacturing. There are also opportunities for expats wanting to teach English in Indonesia, while others move there to take up a position within the humanitarian or tourism sectors. 

In the heart of Southeast Asia, the Indonesian job market is evolving, making room for skilled expats in various domains. The burgeoning digital economy in Indonesia also holds promise for expats. As the nation embraces digital transformation, there’s an increasing demand for skilled professionals in information technology, digital marketing and e-commerce.

The startup ecosystem is also thriving, especially in urban centres like Jakarta, offering a dynamic workspace for innovative minds from around the globe. Indonesia's growing prominence in sustainable practices has also opened doors in renewable energy and environmental conservation.


Finding a job in Indonesia

Most expats find employment with international corporations in Indonesia and secure a job before arrival, with many sent as part of an intra-company transfer. There are several local job portals for searching for jobs online.

Foreigners aspiring to work in Indonesia will need to obtain a valid work permit. The process for acquiring a work permit for Indonesia can be quite complicated, but thankfully, most hiring companies will deal with all the logistics for this.

Securing employment can pose challenges for expats. This is due to government policy in Indonesia mandating that companies adhere to certain criteria when hiring foreigners. They need to demonstrate that the potential employee possesses significant skills in their sector and that there are no local job-seekers capable of filling the position. Certain sectors have restrictions on the employment of expats. The bureaucratic hurdles in this regard can be quite intense, often making companies reluctant to hire foreigners.

Useful links

  • For a well-established online employment marketplace, check out JobStreet Indonesia, which provides a platform for job-seekers and employers to connect.
  • Offering a broad range of job listings, including positions suitable for foreign professionals, Monster Indonesia is part of a global job search platform.
  • LinkedIn Jobs is a valuable resource for networking and job searching, providing a platform for professionals to connect with potential employers in Indonesia.

Work culture in Indonesia

Expats working in Indonesia will generally experience a friendly and welcoming environment. Business structures are hierarchical, and the concept of saving face should be kept in mind to maintain harmonious relationships and avoid offending Indonesian colleagues.

Adapting to the communication style in Indonesia may be a learning curve for expats – Indonesians typically adopt an indirect style to avoid offending anyone. Expats, therefore, need to exercise patience when engaging in negotiations with Indonesian counterparts, as an answer of 'yes' may sometimes indicate that an associate has heard the request rather than an actual answer to the question. Besides, understanding and respecting the local customs and cultural nuances is imperative for forging successful professional relationships in this diverse and traditional country.

Weather in Indonesia

Indonesia has a tropical climate. The weather is hot and humid all year round but cooler inland than along the coastal regions. For expats moving to Indonesia from cooler climates, the high temperatures and humidity are certainly something that takes getting used to.

The country doesn't experience four distinct seasons, with temperatures staying quite constant throughout the year. Coastal regions average around 82°F (28°C), and the inland and mountainous areas average around 79°F (26°C) year-round. The monsoon season is from December to March, bringing heavy rains that can make travel around the country difficult. Tropical storms can also affect the country between September and December, causing major travel disruptions. The dry season, from June to October, is the most pleasant time of year.

 

Diversity and inclusion in Indonesia

Indonesia, the vast archipelago in Southeast Asia, boasts a rich mosaic of diverse cultures, languages and traditions unique to the region. As the world's fourth most populous country, it is a thriving hub of socioeconomic activity and a vibrant tapestry woven with a blend of ancient traditions and contemporary ethos. Indonesia boasts a diverse blend of ethnicities and languages, showcasing its rich historical tapestry and modern-day cultural evolution.

Boasting a population of approximately 278 million, Indonesia has seen steady growth in the last decade. Its ethnic diversity is profound, with over 1,300 distinct groups; however, 95 percent identify primarily as Native Indonesian. The Javanese, making up 42 percent of the total populace, dominate as the most substantial group, and the Sundanese make up about 15 percent. Other significant ethnic groups in Indonesia include the Batak, Minangkabau, Betawi, Bugis, Acehnese and Dayak.

While Indonesian serves as the official language, the collection of over 700 languages and dialects spoken represents the depth of its cultural diversity. A developing nation, Indonesia skews younger, with 24 percent of the population under 14 years.


Accessibility in Indonesia

While Indonesia has made efforts towards improving infrastructure and policies for people with disabilities, there is meagre supportive legislation and few programmes for people with limited mobility, making it a problematic destination for anyone with a disability to live and work in. Very few buildings, including international hotels and offices, have disabled access.

Public transport in Indonesia is not well adapted for those in wheelchairs, and pavements are riddled with potholes, loose maintenance holes, parked motorcycles and all kinds of street life. Even non-disabled people walk on roads rather than negotiate sidewalks. Things are better in the centre of Jakarta, but the city's suburbs and the rest of the country remain challenging.

In recent times, Indonesia has been proactively enhancing accessibility features, especially in its urban centres, with more public buildings undergoing renovations to become more inclusive.

Airports

Jakarta's Soekarno-Hatta International Airport offers accessibility features, but many passengers opt for paid premium services as ground handling staff are not always fully trained. Onward travel is by the DAMRI bus, Railink train or taxi, but using a taxi is recommended for expats. Wheelchair-adapted taxis can be pre-booked. The trip to Jakarta Central takes around 60 minutes outside of rush hour.

Taxis

Wheelchair-accessible taxis, like Lifecare cabs, are available in major Indonesian cities. These should be booked in advance. Whilst there is no Uber, local versions such as Grab enable ride-hailing in urban areas – but accessibility features for individuals with mobility challenges are still limited. Private companies operate minivan services, and it's advised to agree on fares upfront before travel.

Buses

The principal bus service, Transjakarta (also called Busway), can be frustrating for those with impairments. The service is considered the world's largest single bus service, carrying over 10 million passengers a month – so it can get hectic. Bus shelters (stops) are often in the middle of the highway, accessed by steep, raised bridges. Much of the vehicle fleet has been renewed with low-floor entry, but journeys must be well planned ahead of time.

Metro

The Jakarta Mass Rapid Transit (MRT) system is relatively new, travelling around 10 miles (16 km) from north to south via 13 stations. The second and third phases are planned or under construction on an east-to-west route. Fares are payable using Jelajah, a contactless smart card. The system has won awards for accessibility and includes priority elevators, access ramps and toilet facilities.

Car hire

International car rental firms and local franchises are available, but few foreign visitors choose to drive themselves. Car and driver services are popular and safer than testing one's driving skills on Jakarta's congested streets. During much of the day, the average traffic speed in the city is slow, so well-planned travel using taxis or car hire tends to be the best option for getting from A to B.

Further reading

Accessible Indonesia
Disability Inclusion: Indonesia


LGBTQ+ in Indonesia

While Indonesia is known for its rich cultural heritage and modern cities, LGBTQ+ individuals still face societal challenges and prejudice. Traditional Indonesian society disapproves of homosexuality and transitioning, which limits progress in public policy, although this can vary widely between urban and rural areas. Some urban areas and youth groups have become more accepting and supportive of LGBTQ+ rights, signalling a potential shift in societal attitudes.

In December 2022, Indonesia instituted a new law criminalising extramarital sex. Since same-sex marriage is not recognised in Indonesia, this definitionally criminalises sexual activity between people of the same gender. In some provinces, homosexuality is punished by flogging or imprisonment. Interestingly, transgender identity is more accepted than gay, lesbian and bisexual identity – Waria (men born with the souls of women) live openly in daily life.

Further reading

Aljazeera: Indonesia passes new criminal code
Equaldex: LGBT Rights in Indonesia


Gender equality in Indonesia

Traditionally, Indonesian society has been male-dominated. Progress has been slow to counter inequality, but the government is committed to change. It has instituted the National Gender Mainstreaming Policy to improve equality in research, policy, dialogue and legislation. There are ongoing discussions, initiatives and movements advocating for gender equality, and the younger generation is leading the way in pushing for change.

Female literacy rates and educational attainment are relatively high, but executive opportunities are limited. Many women drop out of the labour market for child and home care, returning as small-scale entrepreneurs or self-employed workers. Women own about 60 percent of Indonesia's micro, small and medium enterprises – faring far better than in the corporate world.

Further reading

UN Women Indonesia


Women in leadership in Indonesia

The country is on the right track as it acknowledges women's crucial role in developing the national infrastructure and economy. The number of female directors and commissioners present in companies listed on the Indonesian Stock Exchange is high and growing. Women in leadership in public and private companies make up around 20 percent. In government, over 21 percent of parliamentary seats are held by women.

Further reading

World Bank webinar: Indonesian Women in the Workplace
Women20 Indonesia


Mental health in Indonesia

It isn't uncommon to experience problems with one's well-being through concerns about work, family, finances or the future – including neglect or abuse. Although mental health awareness has increased in Indonesia in recent years, stigma and misunderstandings of mental health exist, especially in the country's outlying regions and smaller cities.

Mental health support is quite limited in Indonesia due to the low number of professionals working with such a large population. The Covid pandemic paved the way for innovative online mental health support and well-being initiatives in Indonesia, and access has expanded massively for those who can afford treatment.


Unconscious bias in Indonesia

Unconscious bias can emerge from living in societies where inequalities exist, eventually becoming internalised as prejudice. Bias surrounding gender, age and cultural background can hinder optimal recruitment processes, stifle professional growth and impact employee satisfaction. Some international organisations in Indonesia deploy training to counter ingrained thinking. It is considered less of a priority for smaller domestic enterprises, in line with many attitudes across Asia.


Diversification of the workforce in Indonesia

Embracing workplace diversity is now seen as pivotal for fostering innovation and maintaining a competitive edge in Southeast Asia. Diversity initiatives in Indonesia are focused on gender as the priority, followed by religion. Many companies, especially international corporations, are taking strides to promote diversity and inclusivity in the workplace.

On the other hand, research reveals that Indonesian attitudes highly emphasise ethnic and family backgrounds. Despite Indonesia's inclusive motto of Bhinneka Tunggal Ika (Unity in Diversity), some industries still show preferences based on ethnic or regional backgrounds. Hiring decisions may be influenced by whether a prospective manager is Javanese, Sumatran or Moluccan – or from further afield. While less than 2 percent of the population is Chinese, these nationals play a crucial role in business and own over half the nation's private capital.


Safety in Indonesia

With a plethora of islands, including some of the globe's premier snorkelling and scuba diving destinations, Indonesia is an outstanding place to visit or make home. Like many other countries, it faces challenges ranging from natural disasters to occasional petty crimes and environmental concerns, including high levels of air pollution. 

Although crime rates aren't a big issue, expats should still be mindful of different customs and cultures. Most visitors and residents spend their time in Indonesia peacefully and problem-free.

Further reading

GOV.UK: Indonesia travel advice
US Travel Advisory: Indonesia


Women's safety in Indonesia

Expats are advised to dress modestly, especially in conservative Islamic areas. In Aceh, women are expected to wear headscarves and cover their arms whether they are Muslim or not. Indonesian men are generally very courteous, but a macho minority exists that is largely ignored by visitors and residents alike. Recent years have witnessed a surge in campaigns and initiatives championing women's safety and rights in Indonesia.


Festive dates in Indonesia

Indonesia has four holiday types: religious, national, international and commemorative. Those designated 'Tanggal Merah' (red date on a calendar) signify national holidays when the government, schools, banks and most businesses are closed. There are also extended holidays called 'Cuti Bersama' when most forms of transport are fully booked, typically during Eid al-Fitr, Eid al-Adha, Christmas and New Year's Eve.