Average monthly net wage Indonesia 2021, by sector

As of February 2021, the mining and excavation industry was the highest-paying sector in Indonesia, with an average monthly net wage of about 4.29 million Indonesian rupiah. By comparison, the agricultural sector was the lowest-paying sector. However, when it comes to the number of people employed, the reverse is true.

Lowest wages for the largest sector of employment

In 2020, the agricultural sector employed more than 38 million of workers, compared to the approximately 1.35 million people employed in mining and quarrying. Although employment in agriculture has been steadily declining over the past few years, it still makes up the biggest share of workers in Indonesia. With the concentration of the agricultural industry in rural areas, this creates a large disparity in purchasing power between the rural and urban populations.

Disparity between urban and rural incomes

Although the cost of living in the countryside in Indonesia was significantly lower than in the cities and urban centers like Jakarta, there was also a significant difference in the availability of better-paid work. Those employed in mining and quarrying in the urban areas can expect up to three million rupiah more than those employed in this same sector in rural areas. This discrepancy in job quality and wages significantly impacted poverty levels, with rural areas experiencing a higher share of the population living below the poverty line.