Recently the Regional Minimum Wage in Bali has been increased up to Rp. 1,905,000 per month - which is good news for millions of locals working under minimum wage trying to afford daily necessities and just making enough to get by. However, this recent increase of minimum wage goes side by side with the increase of fuel price as well. This means workers aren’t necessarily making more money that will enable them to improve their lives; this raise is simply allowing them to maintain their current lifestyle accordingly with the increase of prices following fuel cost hike.

The majority of locals working in tourism industry, F&B, or as villa staff are earning minimum wage of around $150 - $180 per month, working at the very least 40 hours a week. Take note that overtime are not always rewarded, but instead expected in certain fields of work. This means workers earning minimum wage makes an average of $1 per hour. While McDonald employees are striking for $15/hour in the United States, we have people with Bachelor Degrees working in the tourism industry for a measly $1 hourly. Let that sink in for a moment.


So with this information in hand, I begin to research how exactly one would cover a life expenses on the island with just $180 per month, and whether or not we can live under such low wage given the circumstances.


Many Indonesian continues to live with their parents even after they marry and have children. That’s an advantage if your paycheck is $180 or under. At least you wouldn’t have rent to worry about; lodging with parents or other family members definitely cuts at the very least 30% of your cost of living. That’s an option if you are a native Balinese, but let’s not forget about all the people migrating to Bali from other islands in Indonesia and have to have their own place. Maid, security, driver, nanny, often have the option of live-in position where their meals and lodging, as well as healthcare is covered by employer. This won’t be the example I take. We’ll be looking through the lives of somebody who has to cover rent, food, transportation, and healthcare, all on or under the $180 per month.

So let’s get to the breakdown here. Let’s say you make Rp. 1,905,000 per month working at a café somewhere down south. You will first need a place. The cheapest boarding room (kost) in Denpasar cost Rp. 500,000 unfurnished. This features a bedroom, bathroom, and a little nook for a kitchen – if you’re lucky you may even get a porch. Let’s assume you have your furniture covered and only have to pay the monthly fees – since we are only looking into the monthly expense one has to pay while living in Bali.

I found most people I talked to are living with a roommate and share cost of rent. So we cut that in half, only Rp. 250,000 per month for rent. Things don’t look too bad now do they? Yay for some positivity!
So you have about Rp. 1,655,000 left in your pocket. Obviously you’ll need a bike to go to work since Bali isn’t exactly very supportive of public transportation. You will most likely either rent or purchase a motorbike on credit – either way the monthly payment will run you Rp. 500,000 monthly on average. Now you have Rp. 1,155,000 to spend. That bike of yours isn’t going to go anywhere without fuel. Luckily Bali is a pretty small island so you will most likely use about 30 liters of fuel for your bike per month. At Rp. 8500 per liter, off goes Rp. 255,000 to take you to, and from work.

You now have Rp. 900,000 to live off of. The price of food if you always eat in Warungs ranges between Rp. 5000 – Rp. 10,000 per meal. Cheaper if you cook, obviously but since you’re single it might take too much efforts and you will require fridge to store your fresh groceries, so let’s skip that part – for research purposes. If you always go for the lowest price of food for all three meals a day, you’ll spend Rp. 15,000 daily, which is Rp. 450,000 monthly on your meals. That means Nasi Jinggo or Mi Goreng almost all the time with very little room for variety.

That leaves you with Rp. 450,000 to send to your family, splurge, save up, or cover medical expenses if you get sick.

So there you have it. It is quite possible to survive in Bali under a local minimum wage – if you’re single. Add a child or a stay at home spouse in this situation and you’ll be greeted at the door of poverty.
I say the increase in minimum wage is great as it does enable one to have a sustainable life; but it’s a hard knock life out there and I believe companies should at the very least provide all workers with health insurance to all employees. With Rp. 450,000 left in hand, if you ever require a medical treatment, you’re toast.

Kay Armanousa