Imagine waking up each morning to the serene whispers of waves gently kissing the sandy beach or the enchanting sight of lush greenery of rice terraces unfolding right outside your window. Sounds like paradise, right? If this is your ideal vision of retirement, you may have wondered, "How much to retire in Indonesia?" as this paradise could become your reality.
Living in Indonesia could be your reality if you choose to retire in the picturesque and culturally rich archipelago of Indonesia. Home to over 17,000 islands, Indonesia is a diverse country that offers something for everyone, making it an increasingly popular retirement destination for expatriates worldwide.
But as enchanting as the prospect sounds, retirement planning is no mean feat, especially when considering a foreign country like Indonesia. One crucial question that needs to be answered is - how much do you need to retire comfortably in Indonesia?
This blog post will provide you with a detailed breakdown of the cost of living in Indonesia, covering all the basic necessities you'll need for a comfortable and satisfying retirement.
Price Of Basic Living Needs In Indonesia
Healthcare
Healthcare is a crucial factor to consider when planning your retirement, especially in a foreign country. Indonesia's healthcare system is a mix of public and private medical services.
Public healthcare facilities, which are more affordable, can sometimes lack the quality and efficiency you might be accustomed to in Western countries.
The private healthcare sector, on the other hand, offers high-quality services at prices that are still generally lower than in Western countries.
A good insurance policy in Indonesia may cost you around IDR 1,000,000 ($70) per person, per month, covering most general treatments and prescriptions. It's important to note that costs can vary greatly depending on your health condition, age, and the type of coverage you choose.
Treatments and services not covered by insurance, such as specialists and high-end hospitals, can be more expensive.
Healthcare services in Indonesia are centred around major cities and tourist destinations, with the best facilities available in the capital, Jakarta, and the popular tourist destination of Bali.
In these locations, you will find clinics and hospitals that cater to international standards.
Food and Beverages
Food is a key aspect of Indonesian culture. The country's diverse culinary landscape reflects its rich cultural heritage and offers a wide variety of foods to suit every palate.
Indonesian cuisine offers a delightful fusion of flavours that can satisfy both spicy and sweet food lovers.
Eating local food in Indonesia is highly affordable. A meal at a local 'warung' - often a casual shop or restaurant - can start from as low as IDR 15,000 ($1). These warungs offer a wide variety of Indonesian dishes that are not only delicious but also provide a truly authentic Indonesian dining experience.
Meanwhile, Western-style food is also available but can be slightly more expensive. A Western-style meal at a local restaurant can range from IDR 50,000 ($3.50) to IDR 150,000 ($10) per meal.
For those who enjoy cooking at home, local markets provide fresh produce at very reasonable prices. Imported goods are available in supermarkets but can be considerably more expensive.
As for beverages, tap water in Indonesia is not potable, so you'll need to budget for bottled or filtered water. The cost for this is fairly low, with a large bottle costing around IDR 5,000 ($0.35).
For those who enjoy alcoholic beverages, beer is commonly available and can be purchased for IDR 40,000-60,000 ($2.50-4) at a local bar or restaurant.
Prices for wine and spirits are higher due to hefty import taxes.
Utilities
Utility costs in Indonesia are relatively low compared to Western countries but can vary depending on your consumption and the type of accommodation you choose.
Essential utilities like electricity and water for a standard apartment can cost around IDR 800,000 ($55) a month.
It's important to note that in warmer months, the cost might increase due to the use of air conditioning.
Internet service is relatively cheap and reliable in Indonesia. Unlimited data plans with speeds up to 10 Mbps can cost about IDR 300,000-400,000 ($20-28) per month.
In terms of mobile services, prepaid SIM cards are readily available and cost-effective. For IDR 100,000 ($7), you can get a prepaid SIM card with a generous data allowance and some call credits.
Transportation
Indonesia's transportation network is indeed quite extensive and diverse, offering various options from public transportation to private rentals.
What's even more convenient is the widespread availability of ride-hailing apps like Grab and Gojek. These apps are extremely popular and widely used across the major cities and tourist destinations in Indonesia.
With just a few taps on your smartphone, you can easily book a car or a motorbike ride to your desired destination. The prices are incredibly reasonable and, in most cases, even cheaper than conventional taxis.
The apps also offer other services such as food delivery and mobile payments, making them an essential part of everyday life in Indonesia.
Public transportation in major cities and tourist areas is available and relatively reliable.
For those who prefer private transportation, a scooter can be rented for IDR 1 - 2 million ($70-140) per month, depending on the type of motorbike you choose. Buying a new scooter can cost around IDR 15,000,000 - 20,000,000 ($1,000 - $1,400).
Cars are also available for rent or purchase but are significantly more expensive and might not be practical due to traffic congestion in urban areas.
Sports And Leisure
Indonesia offers a diverse range of affordable sports and leisure activities, making it an ideal retirement destination for those seeking an active lifestyle.
Water sports enthusiasts can enjoy surfing, diving, and snorkelling, thanks to Indonesia's vast marine biodiversity and world-class surf breaks, with equipment rental and guided tours available at reasonable prices.
For the adventurous, Indonesia offers abundant hiking and mountain biking opportunities with trails suitable for various skill levels. Moreover, the country's plethora of breathtaking waterfalls and natural attractions provide tranquil settings for relaxation.
Gym memberships are available for fitness enthusiasts and can be around IDR 500,000 ($35) per month. This cost could increase if you're looking for high-end fitness centres or personal training sessions. If you're a golf aficionado, there are many beautiful golf courses around the country.
Adding to the diverse recreational activities in Indonesia, Bali specifically boasts a thriving yoga and wellness scene. This complements sports and leisure activities, offering holistic health and tranquillity for those who seek peace and wellness in retirement.
For those who prefer cultural and entertainment activities, Indonesia offers plenty of those as well. You can visit museums and historical sites for a small entrance fee, usually under IDR 55,000 ($3.50). Cinema tickets are around IDR 55,000 ($4-5) each, and theatre performances vary in price depending on the show and seating.
Restaurants
Dining out is a popular pastime in Indonesia due to the wide variety of cuisines available and the affordability of restaurants. From local warungs to high-end international restaurants, the options are endless.
A meal at a local warung can cost as little as IDR 15,000-30,000 ($1-2) while a three-course meal at a mid-range restaurant can be around IDR 200,000 ($14) for two people.
Upscale dining options are also available, particularly in tourist areas like Bali and Jakarta. These high-end restaurants can cost IDR 400,000-600,000 ($28-42) per person or even higher, depending on the establishment and the meal.
Accommodation
Accommodation is likely to be your most significant monthly expenditure, but it's also the one with the most variability. Indonesia boasts a wide variety of accommodation options ranging from simple homestays to luxurious villas, classic, fancy resorts, and more.
Rental costs in Indonesia can range greatly based on the location, size, type, and standard of the property. For example, you can rent a room in a homestay for around IDR 5,000,000 ($350) per month, while outside the city centre, the same could be around IDR 3,000,000 ($210).
If you prefer more luxurious living or need more space, a two to three-bedroom villa in Bali can cost anywhere from IDR 25,000,000 ($1,600) to IDR 50,000,000 ($3,500) per month, depending on its location and amenities.
It's worth mentioning that most rental agreements in Indonesia require payment upfront for the entire contract duration, which is usually a year. Therefore, this must be considered while planning your retirement budget.
Buying property in Bali as a foreigner can be challenging due to restrictions on land ownership, but there are ways to navigate this through leasehold agreements. For a comprehensive guide on this, you can read our post on
Everyday Clothing
Indonesia's tropical climate means that lightweight clothing is suitable for most of the year. Clothing prices in Indonesia are quite affordable, especially if you choose local brands or buy from local markets.
You can get a good-quality T-shirt for IDR 50,000 ($3.50), a pair of jeans for around IDR 200,000 ($14), and shoes for IDR 300,000 ($21).
However, imported Western brands can be considerably more expensive than local ones, with prices comparable to those in Western countries.
It's also worth noting that in Indonesia, especially in Bali, it's common to have clothes tailor-made, which can be a cost-effective and unique way to refresh your wardrobe.
Best Places To Retire In Indonesia
Indonesia, with its thousands of islands, offers a variety of locations for retirement. While each has its unique charm, some places stand out as particularly attractive for retirees.
The cost of Living in Bali is noticeably cheaper than in most Western countries, which is one of the biggest standouts, alluring retirees from all over the world.
As we move on, the question of whether should I retire in Bali will soon change to where to live in Bali.
Join us as we delve into the best places to retire in Indonesia.
Canggu
Living in Bali is a dream come true. Canggu, situated on Bali's south coast, is a popular destination for expats. It offers a perfect blend of a relaxed beach-town lifestyle and a vibrant social scene.
This area is known for its trendy cafes, beach clubs, and impressive surf breaks. The cost of living in Canggu is quite reasonable, with a one-bedroom apartment available for around IDR 8,000,000 ($600) per month.
With a plethora of housing options available, the answer to your question of “Where to live in Canggu?” is easy to obtain.
It's worth mentioning that while Canggu offers a relaxed lifestyle, it also boasts a vibrant nightlife, making it a great choice for those who like to mix relaxation with socializing.
Ubud
Nestled amidst rolling rice terraces and lush rainforest, Ubud is the cultural epicentre of Bali.
Known for its art markets, yoga studios, and organic eateries, Ubud attracts those in search of tranquillity and spiritual wellness.
The cost of living is slightly lower than in the southern beach areas of Bali. Rent for a one-bedroom apartment in the town centre is about IDR 7,000,000 ($450) per month.
Moving to Bali, especially Ubud, will surely tick the boxes when it comes to choosing the best place for your retirement.
With its cooler mountain climate, rich cultural scene, and proximity to stunning natural landscapes, Ubud is ideal for retirees looking for a peaceful yet culturally rich lifestyle. Moreover, it is a crowd favourite amongst those looking for the best area in Bali for family and kids.
Lombok
Lombok, Bali's less crowded neighbour, offers beautiful beaches, fantastic surfing spots, and the mighty Mount Rinjani, Indonesia's second-highest volcano.
The cost of living is lower than in Bali, and it's becoming a popular destination for those seeking a quieter, more laid-back lifestyle.
Monthly rent for a one-bedroom apartment can be as low as IDR 5 - 6 million per month ($335 - 400). This price can also increase depending on the size, location, and amenities on offer.
Despite its tranquillity, Lombok has a growing expat community and all the amenities needed for a comfortable lifestyle.
As it's less developed than Bali, it also offers more opportunities for exploring untouched natural beauty.
FAQ
How much money do you need to retire in Bali?
To retire comfortably in Bali, a monthly budget of around IDR 1, 300,000 to 30,000,000 ($1,300 to $2,000) is generally adequate to cover all your needs, including housing, food, healthcare, transportation, and leisure activities. However, this amount can vary depending on personal lifestyle and preferences.
Is it cheap to retire in Bali?
Compared to many Western countries, Bali offers a significantly lower cost of living, making it an affordable retirement destination. However, it's crucial to remember that certain goods and services, especially those targeted at tourists or expats, can be priced comparably to Western countries.
Is Bali a good place for expats to retire?
Yes, Bali is a popular retirement destination for expats due to its affordable cost of living, high quality of life, rich culture, and beautiful natural landscapes. Moreover, Bali's expat community is large and welcoming, making it easy for newcomers to integrate and make friends.
Is Bali or Thailand better for retirement?
Retire in Bali or Thailand is a common question. Both Bali and Thailand are popular retirement destinations with their unique advantages. Bali offers a rich cultural heritage, beautiful landscapes, and a strong expat community. Thailand, particularly places like Chiang Mai and Hua Hin, also offers a low cost of living, good healthcare, and a favourable climate. The choice between Bali and Thailand ultimately depends on personal preferences and lifestyle.
Conclusion
Retiring in Indonesia, particularly in the popular destination of Bali, can be a dream come true for many. With its rich cultural tapestry, stunning natural beauty, and warm tropical climate, Indonesia provides an ideal setting for a relaxed and enriching retirement.
The cost of retiring in Indonesia can be significantly lower than in many Western countries, making it an attractive destination for retirees.
While moving to a new country for retirement might seem daunting, thorough planning, and preparation can ease the process considerably.
Hopefully, this guide has provided you with a detailed overview of the costs associated with retiring in Indonesia, making the process a little less intimidating.
Take the first step towards your dream retirement today by chatting with our team of knowledgeable real estate agents, and explore property options in your chosen Indonesian city on our property listings pages.
