Indonesien Trendreport 2014 PDF

TOP TRENDS IN INDONESIA
T
2014
thomas.klaffke@gmail.com
tripadvisor

Foreword
As an enormously large, diverse and rapidly transforming country of 250
million people, Indonesias complexity poses many uncertainties and
opportunities for international and domestic companies aiming to do business
in the archipelago. The currently predominant analyses of merely economic
developments and occasionally political changes lack an thorough
assessment of societal trend, often driven by technological advances and its
rapid dissemination.
This study is trying to do exactly that. It is however not trying to predict the
future or to portray the following elaborations as the only truth or as a holistic
view on things. Nevertheless, this concise study presents a quick overview of
important trends, dynamics and forecasts in the archipelago as well as a look
at nascent market potentials.
Thomas Klake
Freelance Futurist
www.tomcatfuturist.com

METHODOLOGY
Google
Literature Review
Social Media
Euromonitor
JakartaGlobe
JakartaPost
TechinAsia
eMarketer
Global News Media
Blogs
Review of
predominant
Trend Studies
Researching and reviewing current studies of

prominent consulting firms and organizations on
developments, trends and forecasts in and about
Indonesia.
Peer Review
Integrating the opinions and expertise of

Indonesians working in the hospitality, marketing,
online, political and economic industry.

CHANGING LIFESTYLES
DIGITALIZATION
SOCIETY & TECHNOLOGY
UPRISING CITIES
SOCIAL MEDIA EXPANSION
ASEAN INTEGRATION RISING CONSUMPTION

NEW TOURISM MARKETS
ENTREPRENEURIALISM
ECONOMY
INFORMAL SECTOR TRANSFORMATION

CHANGING LIFESTYLES
DIGITALIZATION
UPRISING CITIES
FUTURE TIMELINE
CHANGING LIFESTYLES
Sources: Hot Chocolate & Mint 2014, CNN 2012, Eat and Treats 2014, Cyclonesia, Antara News, TechinAsia 2012
CHANGING LIFESTYLES
Contrary to demographic developments in developed countries, Indonesias
population - whilst still gradually growing - is one of the youngest in the
world. In 2030, it is expected that about 70% of the Indonesian population
will have working age. It is needless to say that the Indonesian youth will be
predominantly shaping Indonesias future in the coming decades.
Surveys show that the outlook on life of these younger generations is much
different to older generations which are still rather romanticizing about the
pre-democratic, authoritarian regime of Suharto. Thus, the possibility of a
transformation towards a more modern, globally interconnected, digital and
entrepreneurial society should be considered.
Implications / Opportunities
New Fashion
Former Taboos
are Gone
New
Advertising/Branding
New Customer
Engagement
Western Products
Products/Services for
Younger Generations
New Food and Beverages
CHANGING LIFESTYLES
INDONESIAS POPULATION IS ONE OF THE YOUNGEST IN THE WORLD: ABOUT
HALF OF THE POPULATION IS UNDER THE AGE OF 30 AND 29% OF THE TOTAL
POPULATION IS UNDER 15 YEARS OLD
THE OUTLOOK ON LIFE OF YOUNG INDONESIANS THAT GREW UP UNDER
DEMOCRACY, POST-SUHARTO, POST-ASIA FINANCIAL CRISIS WITH THE
OMNIPRESENCE OF DIGITAL DEVICES AND THE INTERNET IS VERY DIFFERENT
TO OLDER GENERATIONS:
THE YOUNG ARE OPTIMISTIC ABOUT THEIR FUTURE, EXPRESS THEIR OPINIONS AND
IDEAS FREELY (E.G. ON BLOGS, SOCIAL NETWORKS), EMBRACE A GLOBAL
INTERCONNECTED WORLDVIEW, ARE CONCERNED ABOUT ENVIRONMENTAL ISSUES, ARE
ENTREPRENEURIAL AND TECHNOLOGY-DEPENDENT
THE NEW TYPICAL YOUNG INDONESIAN IS A COLLECTIVIST, IS
SOMEWHAT GEEKY, POSTS FREQUENTLY ON HIS FASHION OR FOOD
BLOG, RIDES A BIKE, IS VERY CREATIVE, TWITTERS SEVERAL TIMES A DAY,
IS A CITY DWELLER, SPENTS LESS TIME WITH HIS/HER FAMILY AND MORE
TIME WITH TECHNOLOGICAL DEVICES, AND WATCHES LESS TV AND
MARRIES LATER IN LIFE THAN HIS/HER PARENTS
Sources: ABC 2012, World Bank 2013, Goethe Institut 2010, McKinsey 2012a, Jakarta Globe 2012, Youth Lab n/s
CHANGING LIFESTYLES
3 TYPES OF INDONESIANS
UNIVERSITY GRADUATE
BUSINESS DAD
CARING GRANDMA
YOUNG
ELITE
FARMER
AMBITIOUS
WEALTHY
TRADITIONAL
URBAN
POLITICAL
RURAL
DIGITAL
HARDWORKING
FAMILY-CENTRIC
MODERN
NATIONAL
MODEST
CHANGING LIFESTYLES
UNIVERSITY GRADUATE
She is a young and very ambitious graduate from the University of

Indonesia, working for a foreign-owned advertising company. She
loves spending her free-time at malls and parks with her friends.
Whenever she sees nice fashion and delicious food, she immediately
tweets and writes about it on her blog. She likes the way european
girls dress and looks forward to new technological gadgets from South
Korea, China or the US. The transforming atmosphere in her city and
country encourages her to pursue her passion and to invest all of her
time into building a great career. While her parents encourage her to
find a husband and to seek a secure employment, she sees her future
differently, putting more value on her personal goals.
IMPORTANCE OF.
(from +++ = highly important to - - - = not important at all)
FAMILY
WORK
RELIGION
FREE-TIME
LUXURY
HOUSING
TRAVELLING
EDUCATION
INTERNET
GADGETS
++
+++
++
++
++
+++
+++
+++
+++
RAMIFICATIONS
MARRY
LATER, BUT
FAMILY STILL
VERY
IMPORTANT
SEEKING
VERY
SUCCESSFUL
CAREER
STILL VERY
IMPORTANT
VERY
IMPORTANT;
WEEKENDS
AND NIGHTS
SPENT WITH
FRIENDS
LOVES
LUXURY
BRANDS;
SAVES
MONEY TO
BUY THEM
LIVES IN A
SAVES
KOST;
MONEY TO
WOULD LIKE
EXPLORE THE
TO MOVE TO
WORLD, ESP.
APPARTMEN
EUROPE
T
INVESTS
LOTS OF
TIME IN HER
EDUCATION
AND
TRAINING
IS
CONSTANTL
LOVES NEW
Y ONLINE
TECHNOLOG
VIA
Y
SMARTPHON
E
CHANGING LIFESTYLES
The business he started in the highly prosperous Suharto era has been
doing great, despite regional and global crisis. He is very proud of
himself, coming from a middle class family in the outskirts of Jakarta
and making it through hard work to his luxurious house in the more
expensive part of Jakarta. He is proud of the achievements of his
country, despite the hourlong traffic jams he has to endure daily with
his new German car as well as the occasional political corruption
scandal he reads about in the newspaper. He wants his children to be
well educated, preferably in the U.S. or Europe, so that they might
eventually continue his business and lead Indonesias economy into
the future.
BUSINESS DAD
IMPORTANCE OF.
FAMILY
WORK
RELIGION
FREE-TIME
LUXURY
HOUSING
TRAVELLING
EDUCATION
INTERNET
GADGETS
+++
+++
++
--
+++
+++
+++
++
+++
LOVES
FAMILY
VACCATION
S IN THE
ALPS OR THE
USA
WANTS HIS
CHILDREN
TO STUDY IN
THE USA OR
EUROPE
IS
INCREASING
LY ONLINE;
SEES ITS
VALUE FOR
HIS FIRM
OWNS THE
LATEST
GADGETS
RAMIFICATIONS
LOVES AND
IS PROUD OF
VERY
HIS FAMILY HARDWORKI
AND
NG;
TRADITION
VERY
IMPORTANT,
PRACTICED
DAILY
WORK IS
VALUED
MORE THAN
FREE-TIME
LOVES
WESTERN
LUXURY
BRANDS,
ESP. CARS
OWN
SEVERAL
LUXURIOUS
HOUSES
CHANGING LIFESTYLES
She is the mother of three boys and one girl, all of which but one have
left the family house, even the village, as they moved to the cities. Two
of her sons are trying to make it in the city center of Medan, selling
hand-made products from home or working as parking lot security
men. Her 18 year old daughter just got a trainee job at a hotel near the
coast, cleaning rooms and making beds for tourists. She is proud of
her children but fear the day their youngest son will leave them. The
work on the farm is too much even when uncle Waris helps out.
Luckily her children are sending a share of their paycheck back,
supporting their parents with their hospital and household bills.
CARING GRANDMA
IMPORTANCE OF.
FAMILY
WORK
RELIGION
FREE-TIME
LUXURY
HOUSING
TRAVELLING
EDUCATION
INTERNET
GADGETS
+++
+++
+++
---
---
++
---
---
HAS NEVER
BEEN
ONLINE;
KNOWS
THAT HER
KIDS ARE
CANNOT
AFFORD
TECHN.
GADGETS
RAMIFICATIONS
FAMILY IS
EVERYTHING
TO HER
LIFE IS FARM
WORK
VERY
RELIGIOUS,
PRAYS 5
TIMES A DAY
NO ACTUAL
FREE-TIME
CANNOT
AFFORD
LUXURY
OWNS
SMALL,
MODEST
HOUSE
NEAR FARM
TOO OLD TO BELIEVES IN

TRAVEL THE EDUCATION,
WORLD;
BUT ALSO
VILLAGE IS
NEEDS HELP
HER HOME
ON FARM
CHANGING LIFESTYLES
UNIVERSITY GRADUATE
BUSINESS DAD
CARING GRANDMA
WHAT KIND OF FUTURE DO THEY WANT ?
A GREAT CAREER
EXPLORE THE WORLD
THE LATEST GADGETS
POLITICAL PARTICIPATION
WESTERN LIFESTYLE WITH
INDONESIAN TRADITIONS
A MODERN, FORWARD-
BETTER POLITICS
MOVING COUNTRY
LESS BUREAUCRACY
THE BEST EDUCATION FOR

HIS KIDS
THE BEST FOR HER KIDS
A SUCCESSFUL AND
GRANDCHILDREN
A SOCIETY BASED ON
POWERFUL NATION
BETTER ACCESS TO WESTERN

LUXURY BRANDS
TRADITION AND FAMILY VALUES
BETTER SOCIAL SECURITY

BENEFITS
DIGITALIZATION
DIGITALIZATION
Indonesia is rapidly becoming digitalized. Currently low or moderate
numbers of internet users are expected to increase enormously over the
next few years, largely driven by an ongoing surge in smartphone
dissemination. This development is mainly due to decreasing costs of
smartphones and the expansion of Indonesias telecommunications
infrastructure all over the archipelago. While internet penetration used to be
highest among 15-24 year old city dwellers and university graduates, it is
increasingly expanding to older age cohorts with more spending power.
We are ultimately seeing a swift growth in the e-commerce as well as the ITmarket where many international and domestic companies are entering and
where startups are founded.
Mobile Advertising
E-Commerce Businesses
IT Consultancy
Location-Based
Mobile Banking
Uber for X (e.g. Ojek)
Services
Mobile
Mobile TV
Big Data Analytics
Education/Health
DIGITALIZATION
INTERNET USERS WILL GROW FROM 72.7m IN 2013 TO
102.8m IN 2016 - FROM 29% OF THE POPULATION TO 39.8%

THE SHARE OF POPULATION USING A SMARTPHONE
WILL JUMP FROM
4.8% IN 2011 TO 33.8% IN 2017

THE INDONESIAN IT MARKET IS SET TO GROW AT AN ANNUAL
18% OVER 2012-2016, REACHING A TOTAL

MARKET VALUE OF US$11.5bn, IN LARGE DUE TO INCREASED
GROWTH RATE OF
COMPUTER HARDWARE SPENDING - ABOUT US$8.5bn IN 2016

INDONESIAS E-COMMERCE MARKET IS ONE OF THE FASTEST GROWING MARKETS IN
THE WORLD, EXPECTED TO GROW FROM
US$4bn IN 2012 TO US$25bn IN
2016, WHEN THE NUMBER OF ONLINE SHOPPERS WILL HIT 49m
Sources: eMarketer 2013a, eMarketer 2013b, Research and Markets 2012
DIGITALIZATION
OVER THE NEXT FEW YEARS, THE SHARE OF SMARTPHONES WILL CONSTANTLY INCREASE WHILE
THE NUMBER OF FEATURE PHONES IN USE ARE EXPECTED TO DECLINE SHARPLY. THIS IS
DRIVEN BY CHEAP SMARTPHONES FROM CHINA, GROWING PER CAPITA INCOMES IN INDONESIA
AND BY A WORLDWIDE SWITCH FROM CONVENTIONAL PHONES TO SMARTPHONES
Growth of Smartphone users in Indonesia
Phone type as share of all mobile phones
103,6
89,8
74%
74,8
67%
55%
50%
45%
40%
46%
52%
61,2
41,6
26,3
11,7
2011
2012
2013
2014
2015
2016
Smartphone users (million)
2017
20%
28%
6%
5%
5%
4%
3%
2013
2014
2015
2016
2017
Basic phones
Sources: eMarketer 2013b, Redwing Asia 2012a
Smartphones
Feature phones
DIGITALIZATION
Internet user growth between 2009-2012 by age group
300%
300%
238%
200%
167%
125%
100%
104%
86%
40%
0%
15-19
20-24
25-29
30-34
35-39
40-50
Total
INTERNET PENETRATION IS HIGHEST AMONG 15-24 YEARS OLD CITY

DWELLERS WITH A UNIVERSIT Y DEGREE BUT IS INCREASINGLY
EXPANDING TO OLDER AGE COHORTS. AS OLDER AGE GROUPS HAVE
MORE SPENDING POWER, THIS LEADS TO AN IMMENSE BOOST FOR ECOMMERCE
Sources: Redwing Asia 2012b, Bayu Syerli Rachmat 2013
DIGITALIZATION
I love everything digital and spent everyday several hours on line,
usually via my smartphone. The Internet means a lot to me as I can find all
sorts of information, connect with my friends or with people from around
the world and find new job opportunities on it. A day without my
smartphone wouldnt be possible.
UNIVERSITY GRADUATE
The IT industry in Indonesia is growing rapidly. I love the potentials the
digitalization offers for businesses. I have decided to acquire some data
analytics expertise through consulting firms in order to move our business
into the digital age. Personally, I love how my tablet simplifies organizing
my business meetings and to-dos.
BUSINESS DAD
My children always tell me about all this stuff going on on the internet,
but I am too old for such games. When they visit us at home, they always
show us the pictures of the city on their phones. The world is moving so
fast - too fast for a grandma like me. However, my son told me he wants to
buy me a phone so he can send me pictures of my grandchildren. Maybe
that will keep the family closer together.
CARING GRANDMA
please note that these are imaginative statements

A look at social media statistics from around the world reveal Indonesias
great importance in this domain. The archipelago ranks in the top quarter
worldwide when it comes to social media usage. Jakarta is even
considered to be the Twitter capital of the world, as the sum of tweets of its
inhabitants exceeds any other city in the world. Indonesians simply love to
use social media to express their feelings and to connect with friends,
colleagues and family.
While social networks and instant messengers in developed countries are
increasingly being scrutinized due to privacy issues, Indonesians are
evermore signing up on them. This poses great opportunities for app
developers and companies involved in the social media sphere.
Social TV
Big Data
Analytics
Advertising
Photo Sharing
Apps/Services
New Networking
Apps
New Platforms
Social Gaming

JAKARTA IS TWITTER CAPITAL OF THE WORLD: 2.4% OF ALL
GLOBAL TWEETS COME FROM JAKARTA
[BANDUNG RANKS 6TH]
WITH ABOUT
64m ACTIVE FACEBOOK USERS, INDONESIA RANKS
AMONG THE TOP 5 LARGEST FACEBOOK MARKETS, IS ADDITIONALLY THE
5TH LARGEST MARKET FOR TWITTER AND THE 12TH FOR LINKEDIN
ON OVER
5m BLOGS, INDONESIANS DISCUSS POLITICS, FOOD
CULTURE, LIFESTYLE, FASHION TRENDS AND MORE

[blogspot.com, blogger.com and wordpress.com are all among the top 10 of most visited websites]
E-MAIL IS OUT: 70% OF INDONESIAN INTERNET USERS SEND PRIVATE MESSAGES VIA
SOCIAL NETWORKS IN CONTRAST TO 51% SENDING THEM VIA E-MAIL
Sources: Semiocast 2012, Jakarta Post 2013, Redwing Asia 2012c, We are Social 2011

Facebook demographics in Indonesia
28%
Number of social network users in Indonesia from

2011 to 2017 (in million)
110
82,5
79,3
89,3
109,9
6%
67,2
55
27,5
99,7
2%
2%
41%
52,2
21%
34,4
2011
2012
2013
2014
2015
2016
2017
13-17
35-44
18.24
45-54
25-34
55+
IN THE LIGHT OF THE 2014 PRESIDENTIAL ELECTIONS, INDONESIAN

NETIZENS SEEM TO BECOME INCREASINGLY POLITICAL AS NEW APPS,
BLOGS AND WEBSITES LIKE APSI WATCH OR AYO VOTE EMERGE INTO THE
DIGITAL SPHERE
Sources: statista 2014a, We are Social 2011, TechinAsia 2014

Online activities of mobile internet users in urban Indonesia
76%
Access social networking sites
45%
Instand messaging
42%
Look up content or search for information
37%
Access e-mail
30%
Download free applications
25%
Send photos taken with camera phone to family/friends

Download ringtones
22%
Download or view personal photos
22%
21%
Play or stream online music

0
0,2
Source: statista 2012b
0,4
0,6
0,8

Social Media is the best invention there is!!! I use it all the time: check out
my Pinterest, Twitter, Facebook, LinkedIn or WeChat! I even have a blog
where I frequently post my fashion and food critiques. While in a traffic
jam, all my friends text each other and share pictures, videos or music. I
am always looking for the next new App coming out and I also love these
guys doing their own shows on YouTube - the videos are so much fun.
UNIVERSITY GRADUATE
Besides my LinkedIn profile, I dont have any other social network
connection yet. However, we increasingly use social media at our
company. As more and more people in Indonesia are using these
networks, it is important to promote your business also digitally. We were
able to establish great business relationships with companies in the US
and Europe through social media.
BUSINESS DAD
This is something my kids use, too. I dont know much about it, but I know
my sons and daughters spent a lot of time on these social networks. I hope
they dont forget their family and real life.
CARING GRANDMA
UPRISING CITIES
UPRISING CITIES
A visit to Indonesias capital Jakarta or to its other major cities, such as
Surabaya, Bandung or Medan, leaves one baffled due to their enormous
size, their chaotic and crowded streets full of cars, motorbikes and people
and due to its energetic, rapidly changing urban landscape. Looking at
current demographic and domestic migration trends however illustrates,
that this is only the beginning. Over the coming years and decades,
Indonesias cities will grow dramatically as more and more people move to
urban areas looking for better economic opportunities. Many of todays
small cities will become large ones, contributing a much larger amount to
the countries GDP.
A higher population density and the uprising of new cities will pose a great
amount of problems but could also introduce many business opportunities.
New Models of
Public Transportation
Construction
Relocation Services
Logistics
Estate Services
New Economic Zones
Domestic Travel
UPRISING CITIES
JAKARTA COULD BECOME A MEGACITY BY 2030
WITH
12.7m INHABITANTS
32m PEOPLE WILL MOVE FROM RURAL TO URBAN AREAS UNTIL 2030 THE URBANIZATION RATE WILL THEN BE AT 71%, UP FROM 53% TODAY
JAKARTA GROWS, BUT OTHER CITIES TOO:
5.8%
MEDAN, BANDUNG, SURABAYA: 6.7 - 7%
JAKARTA ANNUAL GROWTH RATE SINCE 2002:
JAKARTAS SHARE OF GDP IS EXPECTED TO REMAIN AT 22%, WHILE THE

SHARE OF OTHER LARGE AND MID-SIZED CITIES [2-10 mio] IS SET TO
INCREASE FROM
17% TODAY TO 27%
IN 2030
Source: McKinsey 2012b
UPRISING CITIES
9,8%
Pekanbaru
9,5%
Pontianak
9%
Balikpapan
Medan
7%
Surabaya
7%
6,7%
Bandung
5,8%
Jakarta
0%
2,5%
5%
7,5%
10%
ANNUAL AVERAGE GDP GROWTH RATE OF CITY GROUPS IN INDONESIA (ex. JAKARTA):
9.1%
MIDSIZE CITIES [2-5 mio]: 6.9%
SMALL CITIES [150.000 to 2 mio]: 6.3%
LARGE CITIES [5-10 mio]:
Source: McKinsey 2012b
UPRISING CITIES
My hometown Jakarta is great. It is the center of Indonesia with so many
opportunities our young generation and everything is changing so fast
here. Every year, more and foreign brands come and open a department
store - I love the European fashion. However, I hate the traffic jams in this
city. Hopefully soon we will have a better public transportation system like
the one in Singapore.
UNIVERSITY GRADUATE
The cities are booming and our company is expanding fast to new
Indonesian cities that where almost unknown and small when I was a
young kid. The opportunities are great, but the rapid pace also poses lots
of problems when it comes to construction, public transport and so on. The
cities need a better administration and less bureaucracy to deal with these
issues. Nonetheless, I see the future of Indonesia in the cities.
BUSINESS DAD
So many people are moving into the urban areas, leaving us farmers
almost alone. There is a lack of so many farm workers and services in the
villages. I feel like I am left alone here, having to be supported by the
money of my children. The government and businesses should do more for
us and the people should not forget where they come from.
CARING GRANDMA

103m INTERNET USERS
67.5% URBANIZATION rate
or 40% of the population

US$25bn: Value of E-COMMERCE MARKET
71%
URBANIZATION rate
33.8% of the population is using a SMARTPHONE

110m SOCIAL NETWORK USERS
4G LTE
becomes
available in
URBAN AREAS
Population with
WORKING AGE:
70% of total
Population
GREATER
JAKARTA: 35m
2020
Jakarta becomes
MEGACITY
[12.7m inhabitants]
2025
2030

ECONOMY
RISING CONSUMPTION
ENTREPRENEURIALISM
NEW TOURISM MARKETS
INFORMAL SECTOR
TRANSFORMATION
ASEAN INTEGRATION
FUTURE TIMELINE
RISING CONSUMPTION
RISING CONSUMPTION
Since decades, Indonesias economy has been growing steadily, raising the
net income of its citizens tremendously year to year. Its growing GDP, driven
largely by domestic consumption, is expected to lift Indonesia into the top
10 of the worlds largest economies in the coming decade.
One reason for such ambitious forecasts is the rapidly growing consuming
class. While the number of households spending less than 1.5 million IDR
per month are decreasing, we are seeing a massive increase in the net
income of people and consequently a surge in household spending,
especially from middle and upper middle income groups.
Higher
Buying Power
New Financial
Services
Luxury Products
Leisure
Services/Products
Products for
Middle Class
Automobile Industry
RISING CONSUMPTION
INDONESIAN HOUSEHOLDS SPENDING MORE THAN
IDR2,000,000 PER MONTH WILL INCREASE FROM
74m IN 2012 TO 141m IN 2020

THE INDONESIAN CONSUMING CLASS - THOSE WITH AN
ANNUAL NET INCOME OF ABOVE US$3,600 - WILL
GROW FROM
45m TODAY TO 135m IN 2030
CONSUMER SPENDING IS PROJECTED TO GROW BY 7.7% ANNUALLY

FROM 2010-2030 - INDONESIAS CONSUMER SECTOR IS PROJECTED
TO BE WORTH
LUXURY PROPERTY PRICES
US$1.1 trillion BY 2030
IN 2012 JUMPED IN
JAKARTA MORE THAN
ANYWHERE ELSE IN THE WORLD BY 38%,

THE ISLAND OF BALI IS SECOND WITH
20% GROWTH
Sources: Boston Consulting Group 2013, McKinsey 2012b, International Enterprise Singapore 2013, Knight Frank 2013
RISING CONSUMPTION
Annual consumer spending in Indonesia (CAGR, 2010-2030, in %)
10,5%
Financial services
7,5%
Leisure
6,2%
Health care
6,0%
Education
5,3%
Personal items
5,2%
Food and beverage
5,0%
Apparel
4,7%
Telecom
4,6%
Transportation
4,5%
Housing and utilities

0%
2,2%
4,4%
6,6%
8,8%
RAPID URBANIZATION, RISING INCOME LEVELS, FAVORABLE

DEMOGRAPHIC PATTERNS AND CHANGING LIFESTYLE TRENDS
ARE JUST SOME OF THE FACTORS THAT ARE BOOSTING
CONSUMER SPENDING IN INDONESIA
Source: McKinsey 2013
11%
RISING CONSUMPTION
Indonesian population divided into various income groups (2012-2020 in million)
6,9
6,6
Affluent
16,5
23,2
Upper middle
49,3
41,6
Middle
44,4
Emerging middle
Aspirant
68,2
50,5
65,4
47,9
Poor
64,5
2012
,5
35
17
,5
28,3
2020
Monthly household expenditure* (IDR millions)

Elite
7.5 and more
Emerging middle
1.5 - 2.0
Affluent
5.0 - 7.5
Aspirant
1.0 - 1.5
Upper middle
3.0 - 5.0
Poor
less than 1.0
Middle
2.0 - 3.0
*Expenditures include regular household expenditures (food, utilities, transportation, communication, regular household
supplies) and exclude discretionary spending
Source: Boston Consulting Group 2013
70
2,5
52
Elite
RISING CONSUMPTION
The dynamics in Indonesia, especially in the bigger cities, are great and
very promising. Although my income is still pretty low, it is much higher
than what the graduates before me earned. My boss promised me a raise
if I stay another year at the company. Fingers crossed and I can move to
an apartment flat in 2 years. All in all, I would say I am very optimistic
about my future!
UNIVERSITY GRADUATE
The average net income of our nations citizens has grown dramatically
since I was born. People earn more and especially middle class is
growing. This is great news for our business as almost all of our products
are sold domestically. As our costumers earn more, we can introduce new
higher-priced and more differentiated products which is a win-win situation
for all.
BUSINESS DAD
That Indonesia is much richer today than 50 years ago, that I know. But
the benefits for us here in the village are rather low. The company we sell
part of our rice to, is doing great and they help us keeping up with the
work. I hope people will appreciate the hard work we do and spent the
increased income on the food we farm for them.
CARING GRANDMA
ENTREPRENEURIALISM
ENTREPRENEURIALISM
As illustrated in the section above, Indonesias future belongs to the
ambitious younger generations that have been brought up in a postSuharto, rapidly transforming, digital country. These young Indonesians are
eager to start their own innovative businesses in order to shape the future
of their country and to accelerate its growth.
The lack of thorough government supervision and the convenience of
starting a business in Indonesia helped create an environment where
entrepreneurs can affordably and quickly transform their idea into a
company. The attention Indonesias startup-scene has recently gotten from
international investors and incubators emphasizes this trend.
Look at local
Startups for Ideas
Computer Science
Expertise
Investors/Incubators
are needed
Co-Working
Spaces
Easy to Start, Fail

and Start again
Fast Idea-to-Market
ENTREPRENEURIALISM
DIGITALIZATION, THE YOUNG POPULATION AND PROMISING ECONOMIC
PROSPECTS ARE PROPELLING THE ENTREPRENEUR L ANDSCAPE IN
INDONESIA, MAKING IT A HOTBED FOR TECH AND CONSUMER START-UPS
A BBC SURVEY OF MORE THAN 24,000 PEOPLE ACROSS 24

COUNTRIES CONCLUDED THAT INDONESIA IS THE BEST PLACE
FOR ENTREPRENEURS
THE INCREASED FLOCKING IN OF INTERNATIONAL INVESTORS AND INCUBATORS, BETTER
INFORMATION CHANNELS AND BUSINESS INFRASTRUCTURE FOR NEW ENTREPRENEURS
AND THE INDONESIAN ENTREPRENEURIAL AND COLLABORATIVE CULTURE INDICATE THE
HUGE POTENTIALS THE COUNTRY HAS FOR ESTABLISHING A START-UP HUB
THE INDONESIAN STARTUP SCENE DEVELOPED RAPIDLY FROM A STARBUCKS

MEETING OF 30 FOUNDERS IN 2010 TO REGULAR MEETINGS OF 200-300
ENTREPRENEURS (#StartupLokal), HIGH-CLASS CONFERENCES (Startup Asia Jakarta
2013), CO-WORKING SPACES (vOffice) AND MANY BLOGS AND INFORMAL GROUPS ALL IN JUST 4 YEARS
Source: TheNextWeb 2013, BBC 2011
ENTREPRENEURIALISM
I love this new startup trend here in Jakarta! I first learned about it at our
University, where they had some workshops on how to build a business,
but nowadays there are startup events all over the city from time to time. I
actually thought about making a startup out of fashion and food blog and
hiring more writers, but I dont really have the expertise for it.
UNIVERSITY GRADUATE
This is still a small and somewhat unknown trend, mainly in Jakarta,
Bandung and Surabaya. But what these young Indonesian entrepreneurs
are doing is great. The website Kaskus is just one great example for this.
We as business leaders have to encourage these people and provide them
with resources. They are the future of Indonesia.
BUSINESS DAD
I dont know much about this.
CARING GRANDMA
NEW TOURISM MARKETS
NEW TOURISM MARKETS

While the renowned island of Bali is still seeing promising growth,
predominantly driven by tourists from Australia, new tourism regions are
becoming evermore popular. Furthermore. Indonesias government is
increasingly pursuing the development of new tourism markets in formerly
unknown regions. Here, uncrowded beaches, vast coastlines and still
comparably cheap and property costs are boosting investments.
With giant infrastructure projects such as new airports, roads and railways
in development all over the archipelago, domestic as well as international
travel are expected to grow substantially. This poses great opportunities for
Indonesian and international companies, especially in the hospitality and
travel industry.
Hospitality
Industry
Travel Agencies
Aviation Industry /
New Airline Services
Construction
Increased
Domestic Travel
Leisure Services
Rail and Bus Travel
NEW TOURISM MARKETS

NEW TOURISM MARKETS IN THE OVER 17.000 ISLANDS RICH ARCHIPELAGO ARE
RISING, IN PARTICULAR ON THE ISLANDS EAST OF BALI. HERE, UNCROWDED
BEACHES, VAST COASTLINES AND STILL COMPARABLY CHEAP LAND AND PROPERTY
COSTS ARE BOOSTING DEVELOPMENT
IN 2011, BEACHFRONT LAND IN LOMBOK COST
TODAY IT COSTS MORE THAN IDR15m
IDR1-2m
PER 100m2,
(US$1.600)
INDONESIAN AIRLINES ARE INTRODUCING MORE AND MORE AIRLINE

ROUTES: INDONESIAS DOMESTIC AIRLINE MARKET IS EXPECTED TO GROW BY
20% ANNUALLY, REACHING 180m PASSENGERS IN 2021

THE INDONESIAN GOVERNMENT HAS IDENTIFIED 16 PRIORITY TOURIST
DESTINATIONS TO BE DEVELOPED IN THE COMING YEARS. AMONG OTHERS:
LAKE TOBA (Sumatra), PANGANDARAN (West-Java), LOMBOK AND THE
RINJANI VOLCANO, PULAU WEH (Aceh), FLORES, DERAWAN ISLANDS (East
Kalimantan), TORAJA (Sulawesi),
Sources: Euromonitor 2013, Property Magazine 2010, Property Report 2012, AirlineLeader 2013, Timetric 2013
NEW TOURISM MARKETS
AT THE SOUTHERN COAST OF LOMBOK, A 1,200 HECTAR BIG RESORT AREA

IS BEING BUILT. OVER THE NEXT T WO YEARS, FIVE TOP-NOTCH
INTERNATIONAL HOTELS WILL CONSTRUCT LUXURY RESORTS, THEME PARKS,
A GOLF COURSE AND EXCLUSIVE VILLAS IN THE AREA, WHICH IS JUST 20
MINUTES AWAY FROM LOMBOKS NEW INTERNATIONAL AIRPORT
Sources: Mandalika Resoort, The Development Advisor 2014
NEW TOURISM MARKETS

It is so cool. Every year new flight routes are coming to the budget
airlines. I have already travelled through East-Sumatra and I also was in
Bali with some friends (so many foreigners there). Sometimes they have
really cheap fares to the Eastern Indonesian islands, like Lombok. I really
want to visit all Indonesia, but I am also saving for a trip to Europe.
UNIVERSITY GRADUATE
Another great potential for our great country. By developing the right
infrastructure we could tremendously increase the amount of GDP gained
by our tourism industry. My business trips are much more comfortable
now that there exist more airlines and more flight routes. I hope our
government will prioritize infrastructure investments as they could also
bring lots of benefits for our industry.
BUSINESS DAD
Yes, the travelers and tourists are everywhere in Indonesia these days.
Now, even Bule (foreigners) are visiting our village. My husband
sometimes takes them through our rice fields and sells them some of our
handmade stuff. We can easily make some extra money through that. I
also love watching the TV shows about traveling through Indonesia. So
many nice places in our country.
CARING GRANDMA

Rising incomes, the subsequently increased spending power as well as
changing lifestyles and new governmental regulations are driving an
informal sector transformation. What used to be a vaguely legal small
business becomes a formal business or gets eaten by larger companies.
Informal markets and street vendors are closed or integrated into food
squares, malls, supermarkets or convenience stores. The same is
happening with informal public transportation, the housing market and
other industries.
The mainly chaotic, disorganized services pose many opportunities as
improvements to current processes are increasingly demanded and rather
easy to implement (such as e.g. food courts or a bus line for a certain
housing district).
Consulting
Expertise
Real Estate
Impl. for
low-income group
Food and Beverage

Industry
Construction
Street Vendors

INDONESIA HAS A HUGE POTENTIAL FOR MODERN GROCERY RETAILERS SUCH AS
SUPERMARKETS, HYPERMARKETS AND CONVENIENCE STORES, AS APPROX. 80% OF
GROCERY SALES ARE STILL COMING FROM TRADITIONAL RETAILERS. SEVERAL
STUDIES INDICATE THAT THIS IS ABOUT TO CHANGE OVER THE MEDIUM TERM.
THE SHARE OF TRADITIONAL OR INFORMAL MARKETS IS DECLINING DUE TO

NEW INFRASTRUCTURE, STRONG GROWTH OF PACKAGED FOOD AND BEVERAGE SALES
(92.2% FROM 2006 TO 2011), RISING INCOMES, CHANGING LIFESTYLES AND HUGE
POTENTIALS IN UNSATURATED MARKETS SUCH AS NEW EMERGING CITIES AND
REGIONS IN EAST INDONESIA
SALES FROM MODERN FOOD RETAILERS INCREASED FROM
US$1.5bn IN
1999 TO OVER US$5.6bn IN 2009

TODAY, 68% OF THE INDONESIAN POPULATION IS STILL EMPLOYED IN
THE INFORMAL SECTOR
Sources: ILO n/s, International Markets Bureau 2012, SMERU Research Institute 2007, USDA Foreign Agriculture Service 2010, Euromonitor 2013

So many new Mini Markets and even one 7Eleven opened in my
neighborhood. We sometimes hang out there in the night, they have many
cool food and drinks. I also really like the new, european style restaurants
and cafes in the malls, we often go there. However, my favorite food is
still Mie Ayam that is sold by a hawker right in front of my kost.
UNIVERSITY GRADUATE
I see some opportunities here. Indonesia however has to be careful not to
let too many western companies into the country. There is lots of money to
be made by transforming the informal sector. My brother now operates
20 food courts near business buildings. All the vendors come from the
nearby area and sell during morning and lunch. They have a constant
income and my brother gets earns a percentage of their daily profits.
BUSINESS DAD
When they opened the first Indomaret (supermarket) in our village, this
really changed a lot. My husband and I aren't selling that much anymore
on the village market and we are compelled to sell a larger portion of our
yields to the our distributor. That of course makes us more dependent on
him.
CARING GRANDMA
ASEAN INTEGRATION
ASEAN INTEGRATION
Partly based on the European Union, ASEAN is - like its role model increasingly integrating in recent years. In 2007, the ASEAN member states
signed a charter giving each of them a legal identity, a first step towards the
planned free trade zone in 2015, called the ASEAN Economic Community
or AEC. Such an AEC would substantially boost the economies of all 10
member states in the coming years and further drive inter-ASEAN
migration. In addition to that, ASEAN is trying to establish trading blocs with
its Asian neighbors.
However, besides economic integration, the ASEAN member states are
also trying to come together on political, societal and environmental issues
by handing over more power to the ASEAN Interparliamentary Assembly
the AIPA or by creating special ASEAN Initiatives
Increased
Trade
GDP Boost
Geopolitical
Changes
Sustainability
Awareness
New Synergies
Rising
Intern. Significance
ASEAN INTEGRATION
IN 2007, THE ASEAN COMMUNITY AGREED TO ESTABLISH AN ASEAN
ECONOMIC COMMUNITY (AEC) BY THE YEAR 2015 TO TRANSFORM

ASEAN INTO A SINGLE MARKET WITH FREE MOVEMENT OF GOODS,
SERVICES, INVESTMENT, SKILLED LABOUR, AND FREER FLOW OF CAPITAL
ASEAN MEMBER STATES ARE CURRENTLY ALSO INTO NEGOTIATIONS WITH
AUSTRALIA, CHINA, INDIA, JAPAN, SOUTH KOREA AND NEW ZEALAND FOR
WHAT WOULD BE THE WORLDS LARGEST TRADING BLOC.
THE REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP) IS SET TO START IN

2015 AND WILL INCLUDE 16 NATIONS, 3 BILLION PEOPLE WITH A COMBINED GDP
OF US$17 TRILLION AND ACCOUNT FOR OVER 40 % OF WORLD TRADE
ASEAN INTEGRATION IS SLOWLY BUT STEADILY TAKING PLACE IN OTHER

AREAS SUCH AS POLITICS (SEE AIPA) AND ENVIRONMENT (E.G. ASEAN
INITIATIVE ON PROMOTING ENVIRONMENTALLY SUSTAINABLE CITIES)
ASEANS GDP IS FORECAST TO GROW FROM US$2.3 TRILLION

IN 2012 TO US$10 TRILLION IN 2030 - WITH INDONESIA
ACCOUNTING FOR 40% OF THE TOTAL
Sources: ASEAN 2013, The Diplomat 2013, EastAsiaForum 2012, ATUC 2012, Deinla 2013 , ASEAN n/s
ASEAN INTEGRATION
1967
1975
ASEAN founded through the

Bangkok Declaration by the five
founding member countries:
1976
First ASEAN
Parliamentary Meeting
(APM) in Jakarta
First ASEAN
SUMMIT in Bali
Malaysia, Philippines, Indonesia,

Singapore and Thailand
1997
First Meeting of ASEAN +3
(China, Japan, South Korea)
1999
Cambodia joins
ASEAN
Laos and Myanmar

join ASEAN
2005
1977
Inception of AIPO
(ASEAN InterParliamentary
Organization)
1995
Vietnam joins
ASEAN
ASEAN establishes the ASEAN

Regional Forum
ASEAN signs charter giving its 10

members a legal identity, a first step
towards its aim towards a free trade
zone in 2015
2015
Envisaged launch of ASEAN
Economic Community
First ASEAN-EU
Economic Community
ministerial meeting in
Brussels
1994
2007
First Meeting of ASEAN +6

(China, Japan, South Korea,
India, Australia and New
Zealand)
1978
1984
Brunei Darussalam
joins ASEAN
2009
Free Trade Agreement with
Australia and New Zealand
signed
2013
Negotiations start on
Regional Comprehensive
Economic Partnership (RCEP)
23rd ASEAN SUMMIT held

in Brunei Darussalam
ASEAN INTEGRATION
Bilateral trade between ASEAN and China in billion US$
1000
1.000
750
500
500
400,1
250
0
54,8
2002
2012
2015*
2020*
ASEAN IS MORE AND MORE BECOMING A MAJOR PLAYER

ON THE WORLD TRADING FIELD:
TRADE BETWEEN ASEAN AND CHINA JUMPED FROM JUST US$54.8bn in 2002
TO US$400.1bn IN 2012 AND IS FORECAST TO HIT
US$500bn IN 2015 AND
US$1 TRILLION IN 2020

Sources: investvine 2013, Xinhuanet 2013
ASEAN INTEGRATION
I am looking forward to the free trade zone. Finally, I dont have to
endure this long visa application procedure to travel to Singapore or
Thailand. I think, we as a modern country have to move beyond our
boundaries and cooperate with other nations. Nowadays, everything is
global and Indonesia should become a player in this connected world.
UNIVERSITY GRADUATE
I see lots of benefits resulting from an increased ASEAN integration. The

AEC will give a boost to the business and hour nation and this will
ultimately make us more popular and powerful on the global economic
stage. We should be proud of our nation and show our values to the
world. Indonesia as the biggest ASEAN country should lead the
organization into a brighter future. We need strong and capable
politicians to do just that.
BUSINESS DAD
I heard about this on the TV. I just hope we dont loose our traditions,
our beliefs and the family values we all have. Indonesia should not
become weak against our neighbors.
CARING GRANDMA
ECONOMY
BBC Survey:
INDONESIA BEST
PLACE FOR
180m domestic
ENTREPRENEURS
AIRLINE PASSENGERS
HOUSEHOLDS spending
>IDR2m in nondiscretionary goods will
rise to 141m
GDP per capita:
$8,883
GDP per capita:

$15,000
Indonesia
enters TOP TEN
ECONOMIES
2020
2025
CONSUMER
SPENDING at
$1.1 trillion/a
CONSUMING
CLASS tops
135m people
7th largest
ECONOMY
in the World
2030
SOURCES
ABC 2012: Indonesian Gen Y ready for
change. Available: http://ab.co/OyBbKw
AirlineLeader 2013: Indonesian growth
skyrockets amidst a highly fragmented
market. Available: http://bit.ly/1fnbIyu
AnataraNews 2012: Demo Jakarta. Available:
http://bit.ly/1cjU5db
ASEAN 2013: ASEAN Economic Community
Factbook. Available: http://bit.ly/Nrqecx
ASEAN n/s: ASEAN Initiatives on Promoting
Environmentally Sustainable Cities.
Available: http://bit.ly/1mrrB7n
ATUC 2012: ASEANS rise as the next
economic superpower. Available: http://
bit.ly/1eawBLR
Bayu Syerli Rachmat 2013: Digital Marketing
Landscape in Indonesia 2013. Available:
http://bit.ly/1cHz53b
BBC 2011: Entrepreneurs face global
challenges - Indonesia top for
entrepreneurs. Available: http://bbc.in/
1fNpsxi
Boston Consulting Group 2013: Indonesias
rising middle-class and affluent consumers.
Available: http://on.bcg.com/1dI9zLe
Chocolate & Mint 2014: Cheering Up.
Available: http://bit.ly/1mw0Hvg
CNN 2012: Cell phone culture: How cultural
differences affect mobile use. Available:
http://bit.ly/1bJ3gJ6
Cyclonesia 2009: Night Riding and Roti Bakar.
Available: http://bit.ly/1hlJoer
Deinla, Imelda 2013: Giving the ASEAN InterParliamentary Assembly a Voice in the
ASEAN Community. Available: http://
bit.ly/1hplPju
East Asia Forum 2012: Asias Regional

Comprehensive Economic Partnership.
Available: http://bit.ly/1epxRX0
Eat and Treats 2014: Otterhound Jakarta.
Available: http://bit.ly/1k7cHFd
eMarketer 2013a: In Indonesia, a New
Digital Emerges. Available: http://bit.ly/
NrqJTP
eMarketer 2013b: Smartphone Penetration
Doubles in Indonesia. Available: http://
bit.ly/NrqNmL
Euromonitor 2013: Travel and Tourism in
Indonesia - Country Report. Available:
http://bit.ly/1k3TZLp
Euromonitor 2013: Grocery Retailers in
Indonesia. Available: http://bit.ly/1c1dXr0
Goethe Institut 2010: Values, Dreams, Ideas Muslim Youth in Southeast Asia. Available:
http://bit.ly/1dusqGG
ILO n/s: Informal economy in Indonesia
Available: http://bit.ly/1cgbrHH
International Enterprise Singapore 2013:
Indonesias Consumer Sector: Tapping the
Consumer Dollar in Food and Retail. IE
Insights Vol. 13. Available: http://bit.ly/
1bF9UAa
investvine 2013: China-ASEAN trade forecast
to hit $500b by 2015. Availabe: http://
bit.ly/1fnctrn
International Markets Bureau 2012: Modern
grocery retailing in major ASEAN markets.
Available: http://bit.ly/1hhpqS4
Jakarta Globe 2012: Raising Legal Marriage
Age to 21 in Indonesia will address Social
Woes: BKKBN. Available: http://bit.ly/
1fQIIKs
Jakarta Post 2013: Facebook has 64m active

Indonesian users. Available: http://bit.ly/
MoisPK
Knight Frank 2013: The Wealth Report 2013.
Available: http://bit.ly/18CUwT6
Mandalika Resort n/s: Mandalika Resort
Map. Available: http://bit.ly/1bFbdPi
McKinsey 2012a: The new Indonesian
consumer. Available: http://bit.ly/1cLIHdt
McKinsey 2012b: The archipelago economy:
Unleashing Indonesias potential.
Available: http://bit.ly/1a9V8yJ
McKinsey 2013: Understanding the diversity
of Indonesias consumers. Available:
http://bit.ly/1eayb09
Property Magazine 2010: Lombok comes of
age. October 2010. Available: http://
bit.ly/MU2gGT
Property Report 2012: In depth: Lombok:
Paradise found? Available: http://bit.ly/
1fNqb1x
Redwing Asia 2012a: Indonesias MobileDriven Telecoms Market. Available: http://
bit.ly/1cgcaZt
Redwing Asia 2012b: Which Segments Use
the Internet in Indonesia? Available: http://
bit.ly/MU2qhz
Redwing Asia 2012c: Indonesias Love Affair
With Social Media. Available: http://
bit.ly/1cgcdEA
Research and Markets 2012: Indonesia
Information Technology Report Q1.
Available: http://bit.ly/1eayAQr
Semiocast 2012: Geolocation analysis of
twitter accounts and tweets. Available:
http://bit.ly/1gEt2No
SOURCES
SMERU Research Institute 2007: Impact of
Supermarkets on Traditional Markets and
Retailers in Indonesias Urban Centers.
Available: http://bit.ly/1fxfeF2
statista 2014a: Number of Social Network
Users in Indonesia. Available: http://bit.ly/
1hhqhlA
statista 2014b: Online activities of mobile
internet users in urban Indonesia.
Available: http://bit.ly/1fhUDAb
TechinAsia 2014: Ayo Vote encourages
Indonesias youngsters to cast their vote.
Available: http://bit.ly/Otyny6
TechinAsia 2012: The Story and Future of
Kaskus. Available: http://bit.ly/1etbZKk
The Development Advisor 2014: LombokMandalika Resort Development. Available:
http://bit.ly/1c1f0qJ
The Diplomat 2013: Regional Comprehensive
Economic Partnership (RCEP) issues and
way forward. Available: http://bit.ly/
1cgcF5V
The Next Web 2013: Chartered: 70 deals and
exits from Indonesias fast-growing start-up
scene. Available: http://tnw.co/1k5fOgQ
Timetric 2013: Indonesia Travel and Tourism
Market 2017. Available: http://bit.ly/
1c1f5Lb
USDA Foreign Agriculture Service 2010: GAIN
Report - Indonesia Retail Food Sector.
Available: http://1.usa.gov/1dp3yA8
We are Social 2011: Social, Digital and
Mobile in Indonesia. Available: http://
bit.ly/1epz3JH
World Bank 2013: World Development

Indicators: Population dynamics. Available:
http://bit.ly/1lj3VUT
Xinhuanet 2013: China, ASEAN aim to boost
trade to 1tln USD by 2020. Available:
http://bit.ly/1k3Wq0A
Youth Lab n/s: Youth Lab Indonesia Presentation. Available: http://bit.ly/
1c4G7RU

T
for more reports, additional information and/or inquiries, please see

www-tomcatfuturist.com
thomas.klaffke@gmail.com
2014
Thomas Klaffke

Indonesien Trendreport 2014 PDF

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TOP TRENDS IN INDONESIA

TOP TRENDS IN INDONESIA

TOP TRENDS IN INDONESIA

Researching and reviewing current studies of

Integrating the opinions and expertise of

TOP TRENDS IN INDONESIA

SOCIETY & TECHNOLOGY

SOCIAL MEDIA EXPANSION

ASEAN INTEGRATION RISING CONSUMPTION

INFORMAL SECTOR TRANSFORMATION

TOP TRENDS IN INDONESIA

She is a young and very ambitious graduate from the University of

(from +++ = highly important to - - - = not important at all)

TOO OLD TO BELIEVES IN

WHAT KIND OF FUTURE DO THEY WANT ?

EXPLORE THE WORLD

THE LATEST GADGETS

WESTERN LIFESTYLE WITH

THE BEST EDUCATION FOR

THE BEST FOR HER KIDS

BETTER ACCESS TO WESTERN

TRADITION AND FAMILY VALUES

BETTER SOCIAL SECURITY

102.8m IN 2016 - FROM 29% OF THE POPULATION TO 39.8%

4.8% IN 2011 TO 33.8% IN 2017

18% OVER 2012-2016, REACHING A TOTAL

COMPUTER HARDWARE SPENDING - ABOUT US$8.5bn IN 2016

US$4bn IN 2012 TO US$25bn IN

2016, WHEN THE NUMBER OF ONLINE SHOPPERS WILL HIT 49m

Sources: eMarketer 2013a, eMarketer 2013b, Research and Markets 2012

Growth of Smartphone users in Indonesia

Phone type as share of all mobile phones

Smartphone users (million)

Sources: eMarketer 2013b, Redwing Asia 2012a

INTERNET PENETRATION IS HIGHEST AMONG 15-24 YEARS OLD CITY

Sources: Redwing Asia 2012b, Bayu Syerli Rachmat 2013

SOCIAL MEDIA EXPANSION

SOCIAL MEDIA EXPANSION

SOCIAL MEDIA EXPANSION

64m ACTIVE FACEBOOK USERS, INDONESIA RANKS

AMONG THE TOP 5 LARGEST FACEBOOK MARKETS, IS ADDITIONALLY THE

5m BLOGS, INDONESIANS DISCUSS POLITICS, FOOD

CULTURE, LIFESTYLE, FASHION TRENDS AND MORE

SOCIAL MEDIA EXPANSION

Number of social network users in Indonesia from

IN THE LIGHT OF THE 2014 PRESIDENTIAL ELECTIONS, INDONESIAN

Sources: statista 2014a, We are Social 2011, TechinAsia 2014

SOCIAL MEDIA EXPANSION

Access social networking sites

Look up content or search for information

Download free applications

Send photos taken with camera phone to family/friends

Download or view personal photos

Play or stream online music

Source: statista 2012b

SOCIAL MEDIA EXPANSION

JAKARTA ANNUAL GROWTH RATE SINCE 2002:

JAKARTAS SHARE OF GDP IS EXPECTED TO REMAIN AT 22%, WHILE THE

17% TODAY TO 27%

Source: McKinsey 2012b

Source: McKinsey 2012b

SOCIETY & TECHNOLOGY