Indonesian Consumer

Chapter 2 Indonesian consumers

2. INDONESIAN CONSUMERS

Overview

• Indonesia has a young and increasing population. Half of the population is under 25 and 30% are under 14. Purchasing power has recovered in recent years as solid economic growth has been restored.

• The country is urbanising rapidly, which is leading to mixing and melding of many traditions. It is also exposing consumers to international tastes and trends.

• In 2003, households with average monthly spending over Rp1 250 000 (approx. A$200/month) accounted for 12% of households nationally and 26% of households in Jakarta.

• At lower incomes, typical diets include rice with some modest garnishing and vegetables. Moderately higher incomes permit a more varied diet with a significantly higher share of spending on fish, meat, eggs, dairy and fruit. Spending on prepared foods rises rapidly with income.

• Urban Indonesians have traditionally eaten out a lot. Their spending on convenience foods is also rising strongly.

• Almost 90% of Indonesians are Muslim. Most observe Islamic dietary laws.

• Although the Indonesian economy is recovering and growing steadily, the Asian economic crisis has left consumers with a stronger focus on value for money.

• Looking to the future, and assuming moderate economic growth, per capita consumption of temperate fruit, poultry, beef, other meat, baked products and dairy goods will grow most rapidly. Consumption of cereals will grow slowly, except for wheat (and flour-based products).

• Packaged goods likely to enjoy strong growth include baby food and confectionery. Sales

of frozen and chilled foods as well as ready to eat meals will also grow, although off

a low base.

Basic indicators

Indonesia is multi-ethnic with many languages and cultures, wide regional differences and fast-changing political and economic circumstances. However, modernisation is bringing the lifestyles of Indonesian urban consumers across the country closer together....