After moving with my family to Jakarta in October 2014, i periodically get asked by people considering the move:
- What is the cost living?
- What kind of package/salary do i need?
- What should i bring?
Here are some answers and thoughts for anyone contemplating the move:
[All numbers are from Q4 2014. Prices move rapidly in developing markets]
Relocation
The hidden cost of moving
I always forget to factor these costs when contemplating stay / go financial trade-offs:
(a) Departure country: Cancellation charges for: Motor/Home/other insurance policies, mobile phone / TV and other contracts, property rental
(b) Arrival country: Getting up to speed in a new city: Knowing where the most cost places are to buy things, what the market rates, etc. (My mother-in-law managed to buy a small bag of grapes for USD 20 in our first week in Jakarta).
Shipping
Most people will ship the majority of their items. I’ve tried this in the past and my experience was:
(a) It’s a lot more expensive than you are originally quoted – they charge the higher of area and weight.
(b) You often get stung by customs taxes on arrival. I’ve heard many stories about this at Jakarta’s ports, including ridiculous duties and theft.
(c) Paying door-to-door delivery is expensive. If you collect at the Port it’s a long, tiring process.
(d) It takes a really long time!
As such, I left non-essentials with friends/family and took everything else on the airplane – we had 20 suitcases! BA have the most generous excess luggage allowance of all airlines, so i would fly with them if you’re going down this path. Overall, i’m pretty sure it worked out more cost effective than shipping.
What should i bring?
Probably easiest to turn this around, as you can basically find almost everything in Jakarta, save for:
(a) The latest small gadget technology – e.g. at the time of writing: the Iphone 6 / google chromecast / Amazon Kindles, etc. Online electronic shopping here is rubbish.
(b) Large shoes. Even western branded stores here, seem to stop at size 10. You’ll find this issue across Asia.
(c) Quality baby formula (i.e. Aptamil)
Shipping pets is hugely expensive and the quarantine / certification process not easy. We had to leave our fluffy chinchilla behind.
I wanted to bring my car, but was informed customs would levy c. 100% of a value THEY ascribed to the vehicle. I.e. it could get very expensive.
What about booze, it’s a Muslim country?
Booze in stores is expensive, save for locally brewed ‘Bintang beer’, which is a decent enough pislner. If you’re connected to the right people, i hear its possible to get alcohol delivered to your door at a more reasonable price… However, pick up a favorite bottle of your single malt etc, at duty free on the way in.
How much do i need to get paid?
In a nutshell, if you are moving with a family from a ‘western’ city, the package required to maintain your overall standard of living, may be significantly higher than back home. Knowing what i do, I would look for a net of tax package of at least 150% of home pay. Indonesia is a third world country, but you’ll find, your average spend will be higher than at home.
Get everything quoted and paid in USD – the IDR has depreciated significantly and I think it will continue to do so.
Pay and allowances
Pay
Obviously number depends on seniority and allowances offered. Get quoted a net of tax number. Watch out for taxes you may have to continue to pay in your home country while overseas (social security), potentially ask your company to cover these.
Allowances
Seek to get allowances for the following.
Housing:
- USD 7,000 a month gets you a penthouse apartment in the Kempinski, overlooking Indonesia Roundabout (center of town), or a gigantic house with cinderella staircase somewhere very central.
- USD 4,000 a month gets you a nice 4 bed house with pool and small garden in a good area. Or a very bling 3 bed apartment (possibly split layer) in an upscale development (e.g. four seasons residences), which will have communal pool, gyms conciege.
- USD 3,000 a month gets you a 2/3 bed house, possibly with pool, and small garden, or a decent 2/3 apartment in a nice development.
- USD 1,500 a month gets you a 1/2 bed apartment in a nice development, or a slightly larger apartment in an older development near the center of town.
You will be asked to pay one or 2 years UPFRONT as a deposit. This is standard. Make sure you company is prepared to pay this for you and deduct from your paycheck.
Landlords will not return prepaid rent if you move before your contract is over, so consider carefully the term.
Schools
School fees are massive and something I didn’t consider properly. There is an oligopoly of decent expat schools, which will cost c. $20k per annum per child.
Car rental
A cheap MPV like a Toyota Avenza costs c. USD 400 a month. For something fancy (a 4×4 etc) you’ll be paying USD 2,000 a month. Cars are expensive.
House help
Maids/Nannies/Drivers – are relatively great value, but it’s difficult to find people with English skills so they come at a premium (c. USD 300 a month). Companies often give an allowance given for the driver. We had a hell of a time finding our maid and nanny, and went through four people in the space of four weeks. If you can speak bahasa the best agency is nabila care: http://www.nabilacare.com/; if not then you are best subscribing to The UpperCrust’s Classifieds (email [email protected] and request to be added), where expats advertise stuff for sale when they are leaving (cars, appliances, etc), and recommend staff if they liked them).
Medical
Get BUPA cover with evacuation to Singapore costs covered. The annual premium cost USD c. 4,500 for me plus wife and baby.
Annual trip home
Return flights paid each year. Particularly important if coming with family.
Cost of living
Food
- Restaurants – very good value – USD 30 gets you an amazing all-you-can-eat Sunday buffet at the mandarin oriental, if you’re willing to go local you can spend USD 2 on lunch and have something pretty substantial.
- Supermarkets – at above western prices. Carefour probably best bet.
- farmers markets – good cheap, fruit / veg / seafood. Need a Bahasa speaker.
Branded products
Cosmetics / Shoes / TVs / Sound Systems – c. 20% more than London prices
Clothing – cleaning / repairs / tailoring
- Branded – c. 20% more than London prices
- Cleaning – v. cheap
- Repairs – v. cheap
- Tailoring – relatively expensive compared to China / Vietnam. I was quoted a minumum of USD 650, going up to USD 8,000, for a tailored suit at Laxmi Tailors. I’m trying a very local tailors, who quoted USD 150 – 250, depending on fabric.
Telecoms
- Mobile phone tariff (XL are best IMO) – good value, similar to the UK.
- Internet / cable TV – First media are the only choice for fast broadband. More expensive than London for a worse service.
House furnishing
The lay of the land appears to be:
(a) Department stores / Malls with western imported overpriced and low quality items (Gandaria City – Informa / Ace / etc)
(b) Boutique furniture / decor stores in Kemang (south Jakarta), which have some beautiful pieces, but are massively overpriced (aka London prices) (Klots, Rumah Lunar, etc)
(c) Specialist furniture malls which on the whole sale garish renditions of mock 16th century French / Italian glitzy gold tatter, at silly prices (Plaza Mebel).
i.e.a disappointing range of options at lower prices. See this post for my recommendation: http://www.barnabyrobson.org/2014/11/08/galeri-pot-in-kemang-timur-home-decor-in-jakarta/
Already moved to Jakarta?
Check out this page for suggestions of places to eat, drink, etc.
