Expatriate Salary Guidelines
This is probably the trickiest of all topics as everybody will tell you something different. Within Indonesia, there are two different types of expatriates available. The first are people who have been transferred by head office and those who are specialist in the mining, telecommunications or oil & gas sectors. Typically, these expatriates will be paid international salaries and have extensive benefit packages.
The second types of expatriates are those who have a reason other than money to stay in Indonesia. It could be they are married to an Indonesian or simply fallen in love with Indonesia. The salaries being paid in to this group varies greatly. The more flexible somebody becomes in their salary requests, the more doors will open.
Below are a number of expatriate benefit options that some companies offer in addition to salary.
Housing: This is a standard offering for most expatriates. The majority of companies will offer a housing allowance and ask the employee to find their own accommodation. Alternatively, some companies will own property and place you in a company property. Most rented accommodation will require a 1 month deposit plus 12 months of rent payments in advance. It is, therefore, a good idea to check if your company will pay the deposit and 12-month advance rent and not pay a monthly housing allowance.
Schooling: The single largest expense after salary and housing is usually education for your children. International schools in Jakarta are not cheap! Jakarta International School currently requires that each student have a four-year depreciating Certificate of Guarantee (COG), costing US$10,000 or a one-year Non-Refundable Certificate (NRC) costing $3,000 for those parents paying their own fees, along with the yearly tuition fees, which vary from over $4,500 to more than $12,500 depending upon the student's grade level. While other schools may be less expensive, most have similar fee ranges. When discussing schooling costs with your company, specifically ask if they cover the COG in addition to tuition, bus fees and other school-required charges. If your children are still young, ask if the company will cover the cost of pre-school.
Cars: These are also standard issue in most expatriate packages. Standard practice is to cover all costs for the car including fuel expenses for everyday usage.
Staff: Driver's wages (including or excluding overtime) are often paid by the company. A driver is a must-have for anybody who is new to Indonesia and is a standard part of most expatriate packages. Overtime and weekends are usually not covered by the employer. Some companies may also cover the cost of staff for your home (security, nanny, gardener, maid, etc.), however this is no longer common practice.
Utilities Allowance: While no longer a standard offering, some companies will still choose to offer a utilities allowance. Or simply pay your utility bills. This may include electricity, water, gas, telephone, mobile phone, drinking water and neighborhood garbage collection.
Home/Annual Leave: The number of days depends on company policy. However, the number of days usually varies from 12 to 25 a year. Some companies will also include one flight home a year, however, the number of companies offering this has been reduced in recent times.
Exit/Re-entry permits and fiscal (exit) tax: Paid by the company. May be a limit on the number of times these will be paid by the company in a given year.
Documentation: Standard practice is the employer will cover the costs for all documentation including passport renewal, work permit (IKTA); temporary stay permit (KITAS); police book (STMD); and population documents (SKTT & SKPPS) for the employee and all accompanying family members.
Medical: Full medical coverage, and this should include spouse and children. It is important to check that the medical coverage allows for emergency evacuation to receive treatment overseas. If your policy does not include this, it is suggested you purchase separate medical insurance.
Mobilization Allowance: The company pays the cost of shipment, by sea, of an allowed number of cubic meters of personal belongings. The company pays customs costs and duties at both ends.
Business Club/Sports Club Membership: As per company policy.