Benchmark Report: Living Income (With Living Wage Annex) for Rural Aceh, Indonesia 2024
2024 Benchmark Report: Living Income (With Living Wage Annex) for Rural Aceh, Indonesia
Abstract
The report on estimating a living income for coffee farmers in Aceh, Indonesia, was com missioned by the International Coffee Organization (ICO), under the aegis of its larger work with the Ministry of Agriculture, the Ministry of Trade, Indonesia Coffee and Cocoa Research Institute (ICCRI) and Sustainable Coffee Platform of Indonesia (SCOPI). Indonesia is the fourth largest producer and exporter of coffee in the world. Aceh was selected as the tar get research area because the province is the third largest producer among provinces in Indonesia and it was also prioritized as a target area for research by both the Government and the other main stakeholders. The living income is defined as an income required by a household in this case for a family of 4 (2 adults and 2 children) to attain a decent standard of living. The estimation process utilized the Anker Methodology®, and determined the basic costs of the necessary items required for decent living, i.e., food for a nutritious and balanced diet, healthy and safe housing, non-food-non-housing (NFNH) items, and contingency expenses. The findings of the report suggest an estimate of living income, for households living in the two regencies of Bener Meriah and Aceh Tengah in Aceh province, of IDR 5,362,819 (USD 337) per month (IDR 64,353,828 or USD 4,044 per year) for the refer ence family size. The Living Income was found to be more than double the family income at the Aceh province poverty line and the World Bank poverty line for a lower middle income country and 20% higher than the World Bank poverty line for an upper middle-income country. However, it is estimated to be 1% lower than gross income before payroll deductions that a typical size family of 4 with 1.565 full-time workers would earn at rural Aceh province’s minimum wage.
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