Cost of Living Increases, IDR 14.88 Million Per Month in Jakarta
There are 10 cities with the highest monthly household living costs in Indonesia. The 10 cities are DKI Jakarta, Bekasi, Surabaya, Depok, Makassar, Tangerang, Bogor, Kendari, Batam and Balikpapan.
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Pedestrians handed over money to the Mickey Mouse clown who walked clumsily on MT Haryono Road in East Jakarta on Wednesday (8/7/2020).
JAKARTA, KOMPAS — In the last four years, the average consumption value or monthly household living costs in Indonesia has increased to around IDR 1 million to IDR 1.5 million. This is reflected in the 10 cities with the highest cost of living. The city with the highest household living costs is DKI Jakarta. The cost of living in Jakarta increased by IDR 1.43 million per month to IDR 14.88 million per month in the 2022 Cost of Living Survey.
In the period comparing the 2018 Cost of Living (SBH) Survey with SBH 2022, Indonesian household consumption also began to shift and become more diverse. This phenomenon is indicated by changes in some of the goods/services consumed by the public.
This came to the fore in the 2022 SBH Results Socialization held by the Central Statistics Agency (BPS) in a hybrid manner in Jakarta, Tuesday (12/12/2023). The survey was conducted on 240,000 households and 847 commodities in 150 districts/cities.
A total of 150 cities/regencies consist of 90 old survey areas and 60 new survey areas. The survey results, especially commodity goods/services consumed by the public in SBH 2022, will be a component of calculating inflation as of January 2024.
Over the past four years, the average consumption value or cost of household living per month in Indonesia has increased by around Rp 1 million to Rp 1.5 million.
Deputy of Distribution and Services Statistics at BPS, Pudji Ismartini, stated that based on the results of the 2022 Household Spending Survey (SBH), there are 10 cities in Indonesia with the highest monthly household living expenses. These cities are DKI Jakarta, Bekasi, Surabaya, Depok, Makassar, Tangerang, Bogor, Kendari, Batam, and Balikpapan.
The cost of living in those cities has increased in the four years between the SBH 2018 and SBH 2022 comparative periods. The increase in the cost of living is influenced by a shift in consumption patterns and the weight of the value of consumption of certain commodities.
"The city with the highest household living expenses is DKI Jakarta. The cost of living in Indonesia's capital has increased by Rp 1.43 million per month to Rp 14.88 million per month in SBH 2022 from Rp 13.45 million per month in SBH 2018," he said.
According to the results of the 2022 SBH (Family Welfare Survey), the four commodities with the highest weight of consumption value in Jakarta are electricity tariffs (6.58%), house contracts (5.56%), gasoline (4.86%), and house rent (4.34%). In the 2018 SBH, the commodities with the highest consumption value were house contracts (6.27%), house rent (5.37%), electricity tariffs (3.98%), and gasoline (3.32%).
SBH 2022 also records the 10 cities/districts with the lowest cost of living in Indonesia. These ten areas are Cilacap, Maumere, Sibolga, Kudus, Tegal, Purwokerto, Singaraja, Sumenep, Jember, and Waingapu.
In the past four years, Cilacap has become a city with the lowest household living costs, despite the rise in living expenses in the area. The monthly household living cost in Cilacap increased by around Rp 490,000 from Rp 4.88 million in SBH 2018 to Rp 5.37 million in SBH 2022.
The cost of living in Jakarta has increased by Rp 1.43 million per month to become Rp 14.88 million per month in SBH 2022, from Rp 13.45 million per month in SBH 2018.
KOMPAS/RONY ARIYANTO NUGROHO
The atmosphere of a light rapid transit train (LRT) crossing Kuningan LRT Station in Jakarta on Tuesday (21/11/2023).
Furthermore, the survey depicts changes in the amount and types of goods/services commodities over the past four years. The number of goods/services commodities in SBH 2022 has increased to 847 commodities from 835 commodities in SBH 2018. Out of that number, 758 commodities are old commodities, 89 commodities are new, and 77 old commodities have not been selected again in SBH 2022.
Old commodities that are no longer on the list include television antennas, VCD/DVD players, magazines and tabloids. Meanwhile, the new commodities include LRT/MRT fares, masks, household gas, electric cigarette equipment and hand sanitizers.
Consumption patterns
In the same occasion, Director of Price Statistics at BPS Windhiarsho Ponco Adi added that in the past four years, the weight of food consumption value has also increased. The weight of food consumption value rose from 33.68 percent in the first half of 2018 to 38.04 percent in the first half of 2022.
Interestingly, the highest consumption value of food, beverages, and tobacco group decreased from 25.01 percent in 2018 to 24.98 percent in 2022. Meanwhile, the provision of food and beverages or restaurants actually increased from 8.67 percent to 10.2 percent.
"This shows a change in consumption patterns perceived in our households. Previously, mothers cooked at home, but now they buy ready-to-eat food both online and offline," he said.
Windhiarso added that the level of shift or change people's consumption patterns in each region is also different. However, if we look at the cost of living on each island in Indonesia, there has been an increase in the weight of energy consumption, especially petrol and electricity, as well as internet subscription costs.
Director of Economic and Monetary Policy Department of Bank Indonesia (BI) Wahyu Agung Nugroho emphasized the need to pay attention to the shift in consumer patterns from goods to services. This is important considering the demographic changes in Indonesia where the younger generation will dominate in the future.
"The future demographic changes in Indonesia, which will be dominated by the younger generation, will bring changes to consumption patterns and how inflation is formed. This has already happened in the United States where inflation is now more dominantly caused by services consumption rather than goods," he said.
The future demographic changes in Indonesia, which will be dominated by the younger generation, will bring changes in consumption patterns and how inflation is formed.
Wahyu explained that the consumption pattern of the younger generation tends towards services rather than goods. They also have different sources of funding because they are already accustomed to electronic devices, allowing them to access digital financing such as financial technology and mutual funds.
The shopping methods of younger generations, Wahyu explained, tend to lean toward online rather than physical stores. If this becomes more widespread, it will create stronger competition among traders.
Trading costs will become more efficient and trading margins will be tighter. However, the prices of goods sold online may be cheaper or more controlled compared to offline, so the inflation of those goods will be structurally lower.
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