Indonesia's cost of living is very affordable, with a Cost of Living Index of 24.8 (NYC = 100). Groceries (32.7) and restaurant prices (14.2) are particularly low, contributing to a high affordability rating.

The housing market in Indonesia is very expensive, with a Property Price to Income Ratio of 25.5 years. The Rent Index is significantly lower at 8.2, indicating that renting is considerably more affordable than purchasing property.

Purchasing power in Indonesia is low, with an index of 32.4 (NYC = 100). This suggests that average incomes do not provide strong buying power relative to costs in a high-income city like New York.

Indonesia has a progressive income tax system for residents, ranging from 5% to 35% for annual taxable income over IDR 5 billion. Non-residents face a flat 20% withholding tax on Indonesian-sourced income, potentially reduced by tax treaties. The standard VAT rate is 11%, and annual property tax (PBB) is generally between 0.1% and 0.5% of the assessed value.

Indonesia's business environment is improving, with a rapidly growing digital economy and a vibrant startup ecosystem. The government is actively working to simplify regulations, streamline business registration, and offer tax incentives to foster innovation. However, navigating the regulatory landscape can still be complex, and specific legislation for startups is still evolving.

Indonesia has a mandatory National Social Security System (BPJS) covering healthcare (JKN), old-age savings, pensions, work accident, death, and unemployment benefits. The JKN scheme covers over 95% of the population, though healthcare quality can vary. The Job Loss Guarantee (JKP) program provides cash benefits (60% of salary for up to six months, capped at IDR 5 million/month or approx. USD 302/month) and job training for eligible laid-off workers. Expats are generally required to participate in healthcare but are exempt from pension contributions.

Deposits in Indonesia are protected by the Indonesia Deposit Insurance Corporation (LPS) up to IDR 2 billion (approximately USD 115,607) per customer per bank. The banking sector is generally stable and resilient, overseen by the Financial Services Authority (OJK) and Bank Indonesia. While some state-owned banks received a negative outlook revision from Fitch Ratings due to their role in government programs, the overall financial system remains sound.