The Largest Source of Household Income in Indonesia is Wages and Salaries

Wages and salaries are the largest source of household income in Indonesia. Based on data from the Central Bureau of Statistics (BPS), the value of wages and salaries for Indonesian households in 2018 reached Rp 5,667.7 trillion, representing 60.31% of total household income.

In 2019, the value of wages and salaries increased to Rp 6,354.71 trillion, or 63.42% of total national household income. Then, in 2020, it decreased to Rp 6,014.12 trillion, representing 60.37% of total household income.

Besides wages and salaries, the largest source of household income in Indonesia in 2018 came from business surplus, which accounted for 26.19%. However, income from this business surplus decreased to 24.26% in 2019 and continued to decline in 2020 to 23.77%.

Furthermore, there is household income from incoming transfers. This income is a primary source for recipient households, such as pensioners and students. The proportion of incoming transfers was recorded at 12.76% in 2018, decreased to 10.06% in 2019, and increased to 11.40% in 2020.

Meanwhile, household income from asset ownership has the lowest proportion. The proportion of ownership income in 2018 was 0.73%, then increased to 2.26% in 2019, and increased again to 4.46% in 2020.