Benchmark Report: Living Income and Living Wage Report and 2024 Update for Rural Central Sulawesi, Indonesia

2024 Living Wage and Income Update Report: Living Wage and Living Income Report for Rural Central Sulawesi, Indonesia

Abstract

This report provides updated estimates of living income (family living expenses) and living wage for rural Central Sulawesi, a major cocoa producing area in Indonesia. The update for June 2024 takes into account inflation and changes in payroll deductions since the original Anker living wage study carried out in October 2022 (Kadarusman et al., 2022).

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Original Report

2022 Benchmark Report: Living Income Report (with Living Wage Annex) for Rural Central Sulawesi, Indonesia

Abstract

This report estimated a living income for rural Central Sulawesi, a major cocoa producing area in Indonesia. The living income is defined as the income required by a typical size family - in this case a family of 4 (2 adults and 2 children) - to attain a basic but decent standard of living. The report was commissioned by Deutsche Gesellschaft-fur- Internationale Zusammenarbeit (GIZ) GmbH and the Cocoa Sustainable Partnership (CSP). The estimation process utilizes the Anker Methodology which determines the costs of the necessary items required for decent living, i.e., nutritious and balanced diet, healthy and safe housing, non-foodnon-housing (NFNH) items, and contingency expenses. The findings of the report suggest a living income for rural Central Sulawesi of IDR 5,026,527 (equivalent to USD 335) per month for the reference family size. This estimate is 23% higher than the World Bank poverty line for an upper-middle income country which Indonesia became in 2023. It is 31% higher than the family income at the minimum wage for Sigi district in Central Sulawesi and more than twice family income at the government’s rural Central Sulawesi poverty line.

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Benchmark Report: Living Wage Report and 2024 Update for Urban Banten and Urban West Java Indonesia