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The basic needs cost of living in Indonesia was Rp 1.8 million in 2015. This figure increased by 8.7 percent compared to the previous year. Jakarta had the highest cost of living in Indonesia at Rp 2.5 million, although approximately 19 provinces had a cost of living below the national average.
The cost of living is determined by the Wage Council, comprising representatives from employers, labor unions, and the government. It is a key component in determining the minimum wage. The cost of living represents the standard needs that a single worker must meet to live decently, physically, non-physically, and socially, for one month.
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