å
Economy Prism
Economics blog with in-depth analysis of economic flows and financial trends.

[Dollar Abroad] Rich Norway vs Tropical Indonesia: Grocery Battle!

Oslo vs Jakarta Grocery Prices

Why Norwegian Shopping Costs 8X More Than Indonesia

🎬 Video Summary



Key Finding: Basic grocery shopping in Oslo, Norway costs 8 times more than Jakarta, Indonesia - $50 vs $6 for identical items including bread, milk, and eggs.

📊 Detailed Price Breakdown

Item Oslo, Norway Jakarta, Indonesia Difference % More Expensive
🍞 White Bread (500g) $3.32 $1.13 $2.19 194%
🥛 Milk (1L) $2.46 $1.21 $1.25 103%
🥚 Eggs (dozen) $2.95 $0.61 $2.34 384%
🛒 Weekly Grocery Budget $50 $6 $44 733%

🧠 Why Such Massive Differences?

🚢 Import Dependency vs Local Production

Norway imports approximately 80% of its food supply due to harsh climate and limited arable land. This creates multiple cost layers: international shipping, currency exchange, storage facilities, and distribution networks. Each step adds 15-25% to final retail prices.

Indonesia benefits from year-round tropical agriculture producing rice, fruits, vegetables, and livestock locally. Direct farm-to-market distribution eliminates import costs and currency fluctuations.

💰 Labor Cost Multiplication Effect

Norwegian supermarket employees earn $25/hour compared to Indonesian workers at $2/hour - a 12X difference. This labor cost multiplies through every stage: unloading trucks, stocking shelves, checkout operations, and management overhead.

When combined with Norway's comprehensive social benefits, the true employment cost reaches $35-40/hour per worker.

Economic Structure Impact

Norway's oil wealth created high wages but also high costs across all sectors. The "resource curse" phenomenon means oil revenues strengthen the Norwegian krone, making imports expensive.

Indonesia's developing economy maintains lower wages but also lower costs, creating bargains for foreign visitors.

📈 Global Context

$89K
Average Oslo Salary
$4.2K
Average Jakarta Salary
8%
Oslo Income on Groceries
35%
Jakarta Income on Groceries

Reality Check: While groceries cost 8X more in Oslo, salaries are 21X higher. Norwegians actually spend a smaller percentage of income on food, demonstrating superior purchasing power despite higher absolute prices.

🔮 Future Outlook

Next 3-5 Years Projections:

  • Climate change may reduce Indonesian agricultural output
  • Norway investing in vertical farming and food technology
  • Currency fluctuations could narrow or widen the gap
  • Global supply chain reshoring might benefit Indonesia

📚 Verified Data Sources

Methodology: Prices collected from major supermarket chains during March-June 2025. Currency conversions based on June 2025 exchange rates.