Benchmark Report: Living Income and Living Wage Report and 2024 Update for Rural Lampung Province, Indonesia
2024 Living Wage and Income Update Report: Living Wage and Living Income Report for Rural Lampung Province, Indonesia
Abstract
This report provides updated estimates of living income (family living expenses) and living wage for rural Lampung Province 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 July 2023 (Hasyim et al., 2023).
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Original Report
2023 Benchmark Report: Living Income Report (with Living Wage Annex) for Rural Lampung Province, Indonesia
Abstract
The report on estimating a living income for coffee farmers in Lampung, Indonesia, was commissioned 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 third largest producer and exporter of coffee in the world producing, in the main, the Robusta variety. Lampung was selected as the target research area because the province is the second 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 is 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 rural Lampung of IDR 5,187,843 (USD 346) per month (IDR 62,254,116 or USD 4,150 per year) for the reference family size. The Living Income was found to be more than double the family income at the Lampung poverty line, 19% higher than the income that a typical family with 1.65 workers would earn at Lampung’s minimum wage, and 27% higher than the World Bank’s 6.85 PPP per day poverty line for an upper-middle income country which Indonesia has recently become (and 127% higher than the World Banks’s 3.65 PPP poverty line for lower-middle income countries which Indonesia just graduated from).
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