Balikpapan most expensive city in Indonesia: Survey

If you thought Jakarta was the most expensive city in Indonesia, think again. That distinction belongs to Balikpapan, the "oil city" of East Kalimantan.

According to this year's Cost of Living Survey by PT Mercer Indonesia, Jakarta is ranked second most expensive, while Bekasi and Samarinda tie for third, followed by Bogor and Jayapura at fifth and sixth.

The survey was conducted across the country in July, two months after the government decision to increase fuel prices.

Mutiarawaty Thaher of Mercer said the rising cost of living was attributed to the fuel price hike in May and the rise in power rates in March.

"Other forms of cost increase include the toll fee hike that was implemented in Jakarta in September 2007," Mutiarawaty said in a press statement.

The cost of living was derived from prices of food and basic needs, transportation, utilities, housing, education, healthcare, entertainment and sports.

In the entertainment and sports categories Jakarta ranked the country's most expensive city.

A number of cities decreased in their rankings in the 2006 survey. Denpasar, which scored 80 points, declined 16 places while Banjarmasin dropped 10 places. Cities with higher ranks included Bekasi (94) going from 10th in 2006 to third this year and Medan (89) rising from 15th to eighth.

The 2008 survey was spearheaded by Mercer as part of a series of global surveys released earlier this year.

Based on a survey conducted in 143 cities around the world, Jakarta ranked the second most expensive city in Southeast Asia after Singapore.