Indonesia set for consumer boom

JAKARTA: Economic growth in Indonesia should cause the number of middle class and affluent consumers to nearly double by 2020, a study has predicted.

The Boston Consulting Group estimated that the amount of Indonesians fitting into this demographic would surge from 74m in 2012 to 141m by 2020, as the country's GDP continues to expand.

Similarly, the number of cities and regencies housing 500,000 members of this cohort is set to jump from 25 to 54, which has "huge implications for the way businesses operate," according to the report.

Greater Jakarta will contain 30m such consumers by the end of the decade, versus 18m in 2012. These totals hit 47m and 24m respectively for the rest of Java, with Sumatra's figures doubling to 34m.

"The typical middle class Indonesian rides a motorbike and shops at a mix of local stores," the analysis added. "Very few have the luxury of air conditioners or a car."

Indeed, fully 91% of this audience regularly buy household supplies from warungs – or small, family–run shops – at present, as do 80% from minimarts. Roughly half also visit wet markets.