Cost of Living in Palembang: An Affordable City Famous for Pempek
Palembang is one of the major cities in Indonesia and serves as the capital of South Sumatra Province. Despite being a densely populated city with strong economic potential, Palembang, widely known as the City of Pempek, is considered one of the cities with the lowest cost of living in Indonesia.
This is largely due to the abundance of affordable food stalls offering ready-to-eat meals at low prices. According to data monitored by Statistics Indonesia (BPS), the average monthly cost of living in Palembang is approximately IDR 1.15 million.
In addition, Palembang has one of the most comprehensive transportation systems among Indonesian cities. Public transportation options include city minibuses, buses, and the Light Rail Transit (LRT), all of which operate in relatively good condition. This accessibility is one of the reasons Palembang attracts many migrants who come to the city to work or pursue higher education.
Palembang’s Cost of Living Ranking According to BPS
Based on data released by BPS every five years, Palembang ranks 17th among Indonesian cities with the highest cost of living, indicating that it remains significantly more affordable than many other major cities.
Minimum Wage (UMR/UMK) in Palembang
If you are planning to move to Palembang for work, it is important to understand the regional minimum wage (UMR/UMK).
- In 2019, Palembang’s minimum wage increased by 7.8% to IDR 2,736,000
- As of 2021, the official Palembang City Minimum Wage (UMK) is IDR 3,270,093.78
This wage serves as a baseline, and workers with higher skills and competencies may earn significantly more.
Cost of Living for Students in Palembang
Every year, many students move to Palembang to continue their studies at well-known universities, especially during the SNMPTN admission period.
Popular public and private universities in Palembang include:
- Sriwijaya University
- State Islamic University Raden Fatah Palembang
- Bina Darma University
- Global Mandiri University
- Muhammadiyah University of Palembang
Based on an interview with a university student, the average monthly living cost for a student is around IDR 2.5 million, typically sent by parents. This budget covers:
- Rent (boarding house): IDR 500,000
- Food: IDR 1,000,000
- Transportation: IDR 300,000
- Other necessities
Although standard rent may reach IDR 600,000 per month, paying annually can reduce the average to around IDR 500,000 per month, proving that smart housing choices can significantly reduce expenses.
Estimated Living Costs in Palembang
1. Housing Costs in Palembang
Housing is a crucial factor, especially for newcomers. For single migrants or students, boarding houses (kost) are the most practical option.
- Boarding house rent starts from around IDR 500,000 per month
- For families, renting a house is more suitable
- Annual house rental costs range from IDR 20–25 million for a modest home, depending on location and facilities
2. Daily Food Expenses
Food is a primary daily expense. Fortunately, Palembang offers very affordable meals, especially compared to other large cities.
- A complete meal (rice, side dish, vegetables) can cost as little as IDR 10,000 per portion
- While Palembang is famous for pempek, the city also offers a wide variety of budget-friendly local cuisine
- For families, home cooking remains the most economical option
3. Transportation Costs in Palembang
Fuel prices in Palembang are relatively affordable, especially for those who own a motorbike, which greatly simplifies daily commuting.
- With IDR 20,000 worth of Pertalite, a motorbike can typically last up to one week for moderate daily use
- For those without private vehicles, the LRT system provides an efficient alternative:
– IDR 5,000 for trips between regular stations
– IDR 10,000 for trips to or from Sultan Mahmud Badaruddin II Airport
Why Palembang Is an Ideal City to Live, Study, and Work
With its rich cultural heritage, diverse culinary scene, and low cost of living, Palembang has become a favorite destination for migrants seeking employment or education.
As the economic and administrative center of South Sumatra, Palembang continues to attract newcomers with its affordable lifestyle and growing opportunities. Beyond work and study, the city’s tourist attractions and vibrant local culture also make it a comfortable and enjoyable place to live long-term.
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