Back in 2015, a cheeseburger from McDonald’s in Indonesia costed around Rp 21,500. Fast forward 10 years later, that burger now costs Rp 33,500! That’s almost a 56% increase – but why?
For one, the prices of dairy and meats have increased over the past 10 years. Indonesia heavily relies on imported beef, especially from Australia. If the Australian dollar gets stronger or export prices rise, Indonesian companies (like McDonald’s) have to pay more in rupiah. As raw ingredient costs increase, McDonald’s passes on part of that burden to consumers, raising prices to maintain their profit margin (the percentage of revenue that is profit).
Another reason is that the minimum wage in Indonesia has been steadily increasing. For example, Jakarta’s minimum wage jumped from Rp 2,7 million in 2015 to over Rp 5 million in 2025. That means McDonald’s has to pay their workers more – and when labor costs go up, so does the cost to make your burger. In the end, prices on the menu go up too.
Lastly, The Indonesian Rupiah (IDR) has gotten weaker compared to the U.S. dollar (USD) over the years. When a country’s currency depreciates (loses value against another currency in the foreign exchange market), it takes more of the local currency to buy things from other countries, aka imports. McDonald’s buys some ingredients and equipment using USD, so when the IDR depreciates, these imported goods get more expensive in terms of local currency.
Hopefully this helps you understand why everything feels like it’s getting more expensive these days. So next time your fries cost more, remember it’s not just about potatoes! As always, contact us for any feedback on this article or for any questions you may have. See you at the next article!
