Indonesia Consumer Lifestyle Euro Monitor)

Consumer Lifestyles - Indonesia
Euromonitor International October 2009
Consumer Lifestyles
Indonesia
List of Contents and Tables

Structure of the Report........................................................................................................................................... 1 Consumer Trends.................................................................................................................................................... 2 Increasing Disposable Incomes Provide Consumers With More Access To Goods and Services ............................. 2 Shrinking Indonesian Households Spur Demand for New Products and Services .................................................... 2 Increasing Rate of Urbanisation Affects Consumer Food Choices ........................................................................... 3 Awareness of Health and Wellness Issues Growing in Indonesia ............................................................................. 3 Advancing Technology Shapes Consumer Demand for Leisure and Communications Products.............................. 4 Population................................................................................................................................................................ 4 Population Change ................................................................................................................................................... 4 Population by Gender ............................................................................................................................................... 5 Population by Marital Status .................................................................................................................................... 5 Population by Education........................................................................................................................................... 6 Population by Rural/urban Areas ............................................................................................................................. 6 Table 1 Population by Age and Gender: 1995/2000/2005/2007/2010/2015................................... 7 Table 2 Population by Age and Gender (% Analysis and % Growth): 1995/2007/2015/1995-2007/2007-2015 ............................................................................ 7 Table 3 Median Age of Population: 1995/2000/2005/2007/2010/2015.......................................... 8 Table 4 Median Age of Population (Growth): 1995-2007/2007-2015............................................ 8 Table 5 Population Change: 1995/2000/2002/2004/2006-2007 ..................................................... 8 Table 6 Population Change (% Growth): 1995-2007/2000-2007 ................................................... 8 Table 7 Birth Rates: 1995/2000/2002/2004/2006-2007.................................................................. 8 Table 8 Death Rates: 1995/2000/2002/2004/2006-2007 ................................................................ 8 Table 9 Birth Rates (Actual Growth): 1995-2007/2000-2007 ........................................................ 9 Table 10 Death Rates (Actual Growth): 1995-2007/2000-2007....................................................... 9 Table 11 Fertility and Birth: 1995/2000/2002/2004/2006-2007 ....................................................... 9 Table 12 Fertility and Birth (Growth): 1995-2007/2000-2007 ......................................................... 9 Table 13 Population by Marital Status: 1995/2000/2002/2004/2006-2007 ...................................... 9 Table 14 Population by Marital Status (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 10 Table 15 Marriage Rates: 1995/2000/2002/2004/2006-2007 ......................................................... 10 Table 16 Divorce Rates: 1995/2000/2002/2004/2006-2007 ........................................................... 10 Table 17 Marriage Rates (Actual Growth): 1995-2007/2000-2007................................................ 11 Table 18 Divorce Rates (Actual Growth): 1995-2007/2000-2007.................................................. 11 Table 19 Population by Highest Educational Attainment: 1995/2000/2002/2004/20062007................................................................................................................................. 11 Table 20 Population by Highest Educational Attainment (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 11 Table 21 Literacy Rates: 1995/2000/2002/2004/2006-2007........................................................... 12 Table 22 Literacy Rates (Actual Growth): 1995-2007/2000-2007 ................................................. 12 Table 23 Population by Urban/Rural Locations and Major Cities: 1995/2000/2002/2004/2006-2007.................................................................................... 12 Table 24 Population by Urban/Rural Locations and Major Cities (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 12 Table 25 Population Density: 1995/2000/2002/2004/2006-2007 ................................................... 13 Table 26 Population Density (% Growth): 1995-2007/2000-2007................................................. 13 Consumer Segmentation....................................................................................................................................... 13 Babies and Infants................................................................................................................................................... 13 Kids......................................................................................................................................................................... 14
Euromonitor International
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Tweenagers ............................................................................................................................................................. 14 Teens ....................................................................................................................................................................... 14 Students................................................................................................................................................................... 14 People in Their Twenties......................................................................................................................................... 15 People in Their Thirties .......................................................................................................................................... 15 Middle-aged Adults................................................................................................................................................. 15 Pensioners............................................................................................................................................................... 16 Table 27 Babies and Infants: 1995/2000/2005/2007/2010/2015 .................................................... 16 Table 28 Babies and Infants (% Growth): 1995-2007/2007-2015 .................................................. 16 Table 29 Kids: 1995/2000/2005/2007/2010/2015 .......................................................................... 16 Table 30 Kids (% Growth): 1995-2007/2007-2015........................................................................ 17 Table 31 Tweenagers: 1995/2000/2005/2007/2010/2015............................................................... 17 Table 32 Tweenagers (% Growth): 1995-2007/2007-2015 ............................................................ 17 Table 33 Teens: 1995/2000/2005/2007/2010/2015 ........................................................................ 17 Table 34 Teens (% Growth): 1995-2007/2007-2015...................................................................... 17 Table 35 People in their Twenties: 1995/2000/2005/2007/2010/2015 ........................................... 17 Table 36 People in their Twenties (% Growth): 1995-2007/2007-2015......................................... 18 Table 37 People in their Thirties: 1995/2000/2005/2007/2010/2015 ............................................. 18 Table 38 People in their Thirties (% Growth): 1995-2007/2007-2015 ........................................... 18 Table 39 Middle-aged Adults: 1995/2000/2005/2007/2010/2015 .................................................. 18 Table 40 Middle-aged Adults (% Growth): 1995-2007/2007-2015................................................ 18 Table 41 Older Population: 1995/2000/2005/2007/2010/2015....................................................... 18 Table 42 Older Population (% Growth): 1995-2007/2007-2015 .................................................... 19 Household Profiles ................................................................................................................................................ 19 Households by Number of Occupants ..................................................................................................................... 19 Household Annual Disposable Income ................................................................................................................... 19 Home Ownership .................................................................................................................................................... 19 Possession of Household Durables ......................................................................................................................... 20 Pet Ownership......................................................................................................................................................... 20 Table 43 Households by Number of Occupants: 1995/2000/2002/2004/2006-2007 ...................... 21 Table 44 Households by Number of Occupants (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 21 Table 45 Occupants per Household: 1995/2000/2002/2004/2006-2007......................................... 21 Table 46 Occupants per Household (Actual Growth): 1995-2007/2000-2007 ............................... 21 Table 47 Number of Households by Disposable Income Bracket: 1995/2000/2002/2004/2006-2007.................................................................................... 22 Table 48 Number of Households by Disposable Income Bracket (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 22 Table 49 Total Housing Stock and New Dwellings Completed: 1995/2000/2005/2007/2010/2015.................................................................................... 22 Table 50 Total Housing Stock and New Dwellings Completed (% Growth): 19952007/2007-2015............................................................................................................... 23 Table 51 Households by Tenure and Type of Dwelling: 1995/2000/2005/2007/2010/2015.................................................................................... 23 Table 52 Households by Tenure and Type of Dwelling (% Analysis and % Growth): 1995/2000/2007/1995-2007/2007-2015 .......................................................................... 23 Table 53 Households by Number of Rooms: 1995/2000/2002/2004/2006-2007............................ 23 Table 54 Households by Number of Rooms (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 24 Table 55 Ownership of Household Durables: 1995/2000/2005/2007/2010/2015........................... 24 Table 56 Ownership of Household Durables by Type (Actual Growth): 19952007/2007-2015............................................................................................................... 24 Table 57 Pet Population: 2000/2002/2003/2004/2006/2007........................................................... 25
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Household Segmentation ...................................................................................................................................... 25 Single-person Households....................................................................................................................................... 25 Couples Without Children....................................................................................................................................... 26 Couples With Children............................................................................................................................................ 26 Single-parent Families............................................................................................................................................ 26 Table 58 Households by Type: 1995/2000/2005/2007/2010/2015 ................................................. 27 Table 59 Households by Type (% Analysis and % Growth) 1995/2007/2015: /19952007/2007-2015............................................................................................................... 27 Labour ................................................................................................................................................................... 27 Working Conditions ................................................................................................................................................ 27 Employed Population by Age .................................................................................................................................. 27 Unemployed Population by Age.............................................................................................................................. 27 Part-time Employment ............................................................................................................................................ 28 Table 60 Employed Population by Age Group: 1995/2000/2002/2004/2006-2007........................ 28 Table 61 Employed Population by Age Group (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 28 Table 62 Unemployed Population by Age Group: 1995/2000/2002/2004/2006-2007 ................... 29 Table 63 Unemployed Population by Age Group (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 29 Table 64 Unemployment Rate: 1995/2000/2002/2004/2006-2007................................................. 29 Table 65 Unemployment Rate (Actual Growth): 1995-2007/2000-2007 ....................................... 30 Table 66 Part-Time Employment by Gender: 1995/2000/2002/2004/2006.................................... 30 Table 67 Part-Time Employment by Gender (% Analysis and % Growth) 1995/2000/2006: /1995-2006/2000-2006 ........................................................................ 30 Income.................................................................................................................................................................... 30 Annual Disposable Income ..................................................................................................................................... 30 Income by Educational Attainment ......................................................................................................................... 30 Income by Gender ................................................................................................................................................... 30 Table 68 Mean Annual Disposable Income by Education and Gender: 1995/2000/2002/2004/2006-2007.................................................................................... 31 Table 69 Mean Annual Disposable Income by Education and Gender (% Growth): 1995-2007/2000-2007 ..................................................................................................... 31 Consumer Expenditure......................................................................................................................................... 31 Table 70 Consumer Expenditure by Broad Category: 1995/2000/2005/2007/2010/2015.................................................................................... 32 Table 71 Consumer Expenditure by Broad Category (% Analysis and % Growth) 1995/2007/2015: /1995-2007/2007-2015 ........................................................................ 32 Table 72 Consumer Expenditure by Commodity Type: 1995/2000/2005/2007/2010/2015.................................................................................... 32 Table 73 Consumer Expenditure by Commodity Type (% Analysis and % Growth) 1995/2007/2015: /1995-2007/2007-2015 ........................................................................ 33 Table 74 Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007 ...................................... 33 Table 75 Consumer Prices and Costs (Actual Growth): 1995-2007/2000-2007............................. 33 Eating Habits......................................................................................................................................................... 33 Spending on Food ................................................................................................................................................... 33 Shopping for Food .................................................................................................................................................. 34 Eating Preferences.................................................................................................................................................. 34 Cooking Habits ....................................................................................................................................................... 34 Table 76 Consumer Expenditure on Food: 1995/2000/2002/2004/2006-2007 ............................... 34 Table 77 Consumer Expenditure on Food (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 35 Table 78 Per Capita Expenditure on Food: 1995/2000/2002/2004/2006-2007............................... 35
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Table 79
Per Capita Expenditure on Food (% Growth): 1995-2007/2000-2007 ........................... 35
Drinking and Smoking.......................................................................................................................................... 35 Spending on Alcoholic Drinks................................................................................................................................. 35 Spending on Soft Drinks and Hot Drinks ................................................................................................................ 36 Spending on Tobacco.............................................................................................................................................. 36 Table 80 Consumer Expenditure on Alcoholic Beverages and Tobacco: 1995/2000/2002/2004/2006-2007.................................................................................... 36 Table 81 Consumer Expenditure on Alcoholic Beverages and Tobacco (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007................................................ 36 Table 82 Per Capita Expenditure on Alcoholic Beverages and Tobacco: 1995/2000/2002/2004/2006-2007.................................................................................... 37 Table 83 Per Capita Expenditure on Alcoholic Beverages and Tobacco (% Growth): 1995-2007/2000-2007 ..................................................................................................... 37 Table 84 Consumer Expenditure on Non-alcoholic Beverages: 1995/2000/2002/2004/2006-2007.................................................................................... 37 Table 85 Consumer Expenditure on Non-alcoholic Beverages (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 37 Table 86 Per Capita Expenditure on Non-alcoholic Beverages: 1995/2000/2002/2004/2006-2007.................................................................................... 37 Table 87 Per Capita Expenditure on Non-alcoholic Beverages (% Growth): 19952007/2000-2007............................................................................................................... 38 Buying Alcohol and Tobacco .................................................................................................................................. 38 Buying Soft Drinks and Hot Drinks......................................................................................................................... 38 Drinking Habits ...................................................................................................................................................... 38 Smoking Habits ....................................................................................................................................................... 38 Fashion................................................................................................................................................................... 39 Spending on Clothing and Footwear ...................................................................................................................... 39 Spending on Accessories and Personal Goods ....................................................................................................... 39 Shopping for Clothing and Footwear...................................................................................................................... 39 Shopping for Accessories and Personal Goods....................................................................................................... 40 Traditional Clothing ............................................................................................................................................... 40 Fashion Trends ....................................................................................................................................................... 40 Table 88 Consumer Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007.................................................................................... 40 Table 89 Consumer Expenditure on Clothing and Footwear (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 41 Table 90 Per Capita Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007.................................................................................... 41 Table 91 Per Capita Expenditure on Clothing and Footwear (% Growth): 19952007/2000-2007............................................................................................................... 41 Table 92 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods: 1995/2000/2002/2004/2006-2007 ............................................................ 41 Table 93 Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods (% Analysis and % Growth): 1995-2007/2000-2007 ................................ 42 Table 94 Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods: 1995/2000/2002/2004/2006-2007 ............................................................ 42 Table 95 Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods (% Growth): 1995-2007/2000-2007.......................................................... 42 Housing and Associated Costs.............................................................................................................................. 42 Spending on Housing .............................................................................................................................................. 42 Renting Versus Buying ............................................................................................................................................ 42 Utility Costs ............................................................................................................................................................ 43 Maintenance and Repair......................................................................................................................................... 43 Table 96 Consumer Expenditure on Housing: 1995/2000/2002/2004/2006-2007.......................... 43
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Table 97 Table 98 Table 99
Consumer Expenditure on Housing (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 44 Per Capita Expenditure on Housing: 1995/2000/2002/2004/2006-2007 ......................... 44 Per Capita Expenditure on Housing (% Growth): 1995-2007/2000-2007 ....................... 44
Household Goods and Services ............................................................................................................................ 45 Spending on Household Goods and Services .......................................................................................................... 45 Shopping for Household Goods .............................................................................................................................. 45 DIY and Gardening................................................................................................................................................. 45 Table 100 Consumer Expenditure on Household Goods and Services: 1995/2000/2002/2004/2006-2007.................................................................................... 45 Table 101 Consumer Expenditure on Household Goods and Services (%Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 46 Table 102 Per Capita Expenditure on Household Goods and Services: 1995/2000/2002/2004/2006-2007.................................................................................... 46 Table 103 Per Capita Expenditure on Household Goods and Services (% Growth): 1995-2007/2000-2007 ..................................................................................................... 46 Health..................................................................................................................................................................... 47 Spending on Health Goods and Medical Services................................................................................................... 47 Healthcare System .................................................................................................................................................. 47 Major Causes of Death ........................................................................................................................................... 47 Prevalence of Smoking............................................................................................................................................ 48 Reported Aids Cases ............................................................................................................................................... 48 Drug Abuse ............................................................................................................................................................. 48 Health and Wellness ............................................................................................................................................... 48 Table 104 Consumer Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007.................................................................................... 48 Table 105 Consumer Expenditure on Health Goods and Medical Services (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007................................................ 49 Table 106 Per Capita Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007.................................................................................... 49 Table 107 Per Capita Expenditure on Health Goods and Medical Services (% Growth): 1995-2007/2000-2007 ..................................................................................................... 49 Table 108 Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006 ....................... 49 Table 109 Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006 ...................................... 50 Table 110 Healthcare Workers: 1995/2000/2002/2004/2006-2007.................................................. 50 Table 111 Healthcare Workers (% Growth): 1995-2007/2000-2007................................................ 50 Table 112 Obese Population: 1995/2000/2002/2004/2006-2007...................................................... 50 Table 113 Obese Population (Actual Growth): 1995-2007/2000-2007 ............................................ 50 Table 114 Smoking Prevalence: 2000/2002/2004/2006-2007.......................................................... 51 Table 115 Smoking Prevalence (Actual Growth): 2000-2007.......................................................... 51 Table 116 Reported AIDS Cases: 1995/2000/2002/2004/2006-2007............................................... 51 Table 117 Reported AIDS Cases (% Growth): 1995-2007/2000-2007 ............................................ 51 Personal Grooming ............................................................................................................................................... 51 Spending on Cosmetics and Toiletries .................................................................................................................... 51 Shopping for Cosmetics and Toiletries ................................................................................................................... 52 Attitudes To Personal Grooming............................................................................................................................. 52 Table 118 Consumer Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007 ................. 52 Table 119 Consumer Expenditure on Personal Care (% Analysis and % Growth): 19952007/2000-2007............................................................................................................... 52 Table 120 Per Capita Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007................. 53 Table 121 Per Capita Expenditure on Personal Care (% Growth): 1995-2007/2000-2007............... 53 Education............................................................................................................................................................... 53
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Spending on Education ........................................................................................................................................... 53 Pre-primary Education ........................................................................................................................................... 53 Primary and Secondary Education ......................................................................................................................... 54 Higher Education.................................................................................................................................................... 54 Adult Education ...................................................................................................................................................... 54 Table 122 Consumer Expenditure on Education: 1995/2000/2002/2004/2006-2007 ....................... 54 Table 123 Consumer Expenditure on Education (% Growth): 1995-2007/2000-2007..................... 54 Table 124 Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007....................... 55 Table 125 Per Capita Expenditure on Education (% Growth): 1995-2007/2000-2007..................... 55 Transport............................................................................................................................................................... 55 Spending on Transport............................................................................................................................................ 55 Air Transport .......................................................................................................................................................... 56 Road Transport ....................................................................................................................................................... 56 Rail Transport......................................................................................................................................................... 56 Transport Infrastructure ......................................................................................................................................... 57 Table 126 Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007........................ 57 Table 127 Consumer Expenditure on Transport (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 57 Table 128 Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007 ....................... 57 Table 129 Per Capita Expenditure on Transport (% Growth): 1995-2007/2000-2007 ..................... 58 Communications and the Internet ....................................................................................................................... 58 Spending on Communications................................................................................................................................. 58 Television, Cable and Satellite................................................................................................................................ 58 Printed Media ......................................................................................................................................................... 58 Telephones .............................................................................................................................................................. 59 Computers and the Internet..................................................................................................................................... 59 E-commerce ............................................................................................................................................................ 60 M-commerce ........................................................................................................................................................... 60 Table 130 Consumer Expenditure on Communications: 1995/2000/2002/2004/20062007................................................................................................................................. 60 Table 131 Consumer Expenditure on Communications (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 60 Table 132 Per Capita Expenditure on Communications: 1995/2000/2002/2004/20062007................................................................................................................................. 60 Table 133 Per Capita Expenditure on Communications (% Growth) 1995-2007/20002007:................................................................................................................................ 61 Table 134 Penetration of Televisions and Number of TV Channels: 1995/2000/2002/2004/2006-2007.................................................................................... 61 Table 135 Penetration of Televisions and Number of TV Channels (% Growth): 19952007/2000-2007............................................................................................................... 61 Table 136 Penetration of Cable and Satellite Television: 1995/2000/2002/2004/20062007................................................................................................................................. 61 Table 137 Penetration of Cable and Satellite Television (% Growth): 1995-2007/20002007................................................................................................................................. 61 Table 138 National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users: 1995/2000/2002/2004/2006....................................................................... 62 Table 139 National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users(% Growth): 1995-2006/2000-2006 ............................................................ 62 Table 140 Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007.................. 62 Table 141 Household PC Penetration and Internet Usage (% Growth): 2000-2007......................... 62 Leisure and Recreation......................................................................................................................................... 62 Spending on Leisure and Recreation ...................................................................................................................... 63 Shopping for Leisure Goods.................................................................................................................................... 63
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Leisure Time ........................................................................................................................................................... 63 Public Holidays and Gift Occasions/celebrations................................................................................................... 63 Culture .................................................................................................................................................................... 64 Sport and Exercise .................................................................................................................................................. 64 Going Out ............................................................................................................................................................... 64 Travel and Tourism................................................................................................................................................. 64 Table 142 Consumer Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007.................................................................................... 65 Table 143 Consumer Expenditure on Leisure and Recreation (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007........................................................... 65 Table 144 Per Capita Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007.................................................................................... 65 Table 145 Per Capita Expenditure on Leisure and Recreation (% Growth): 19952007/2000-2007............................................................................................................... 66 Table 146 Consumer Expenditure on Accommodation: 1995/2000/2002/2004/20062007................................................................................................................................. 66 Table 147 Consumer Expenditure on Accommodation (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 .......................................................................... 66 Table 148 Per Capita Expenditure on Accommodation: 1995/2000/2002/2004/20062007................................................................................................................................. 66 Table 149 Per Capita Expenditure on Accommodation (% Growth): 1995-2007/20002007................................................................................................................................. 66 Eating Out ............................................................................................................................................................. 66 Spending on Catering.............................................................................................................................................. 66 Attitudes To Eating Out........................................................................................................................................... 67 Table 150 Consumer Expenditure on Catering: 1995/2000/2002/2004/2006-2007.......................... 67 Table 151 Consumer Expenditure on Catering (% Growth): 1995-2007/2000-2007 ....................... 67 Table 152 Per Capita Expenditure on Catering: 1995/2000/2002/2004/2006-2007 ......................... 67 Table 153 Per Capita Expenditure on Catering (% Growth): 1995-2007/2000-2007....................... 68 Banking and Financial Services ........................................................................................................................... 68 Spending on Banking and Financial Services ......................................................................................................... 68 Pensions.................................................................................................................................................................. 68 Table 154 Consumer Expenditure on Insurance: 1995/2000/2002/2004/2006-2007........................ 68 Table 155 Consumer Expenditure on Insurance (% Analysis and % Growth): 19952007/2000-2007............................................................................................................... 69 Table 156 Per Capita Expenditure on Insurance: 1995/2000/2002/2004/2006-2007 ....................... 69 Table 157 Per Capita Expenditure on Insurance (% Growth): 1995-2007/2000-2007 ..................... 69 Table 158 Consumer Expenditure on Financial Services: 1995/2000/2002/2004/20062007................................................................................................................................. 69 Table 159 Consumer Expenditure on Financial Services (% Analysis and % Growth): 1995-2007/2000-2007 ..................................................................................................... 69 Table 160 Per Capita Expenditure on Financial Services: 1995/2000/2002/2004/20062007................................................................................................................................. 69 Table 161 Per Capita Expenditure on Financial Services (% Growth): 1995-2007/20002007................................................................................................................................. 70 Definitions.............................................................................................................................................................. 70 Summary 1 Country Coverage............................................................................................................ 70
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CONSUMER LIFESTYLES IN INDONESIA

STRUCTURE OF THE REPORT
This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. Each country profile is structured under the following sub-headings: Consumer trends Population Consumer segmentation Household profiles Household segmentation Labour Income Consumer expenditure Eating habits Drinking and smoking Fashion Housing and associated costs Household goods and services Health Personal grooming Education Transport Communications and the internet Leisure and recreation Eating out Banking and financial services
The information in this report was gathered from a wide range of sources, starting with national statistics offices. This information was cross-checked for consistency, probability and mathematical accuracy. Secondly, we sought to fill in the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore, Euromonitor International has carried out an extensive amount of modelling in order to come up with interesting datasets to complement the national standards available. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data, which we were not able to reconcile in every instance. Even when the data are produced by the same national statistical office on a specific parameter, like the total Population in a particular year, discrepancies can occur depending on whether it was derived from a survey, a national census or a projection and whether the data are based on mid-year or January figures. For slow trends where it is interesting to look at a long period as well as projections, data are presented for 1995, 2000, 2005, 2007, 2010 and 2015. Fast-moving trends are illustrated with datasets relating to 1995, 2000, 2002, 2004, 2006 and 2007.
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CONSUMER TRENDS
Increasing Disposable Incomes Provide Consumers With More Access To Goods and Services
The Indonesian economy has steadily improved over the past several years. Real GDP growth improved from 3%-4% in the early 2000s to more than 6% by 2007. The unemployment rate dropped from double digits to just 9% by 2007. At the same time, levels of disposable income have increased. By 2007, nearly one-third of Indonesian households had annual disposable incomes above US$5,000. All of this has led to an overall increase in the standard of living for most Indonesians and has opened doors to a wide range of products and services that had been unavailable in decades past. For example, many consumers switched from fresh to packaged foods, and the packaged food industry in the country has reported double-digit growth. The non-alcoholic drinks sector has also grown strongly. Expenditure on communications products, such as mobile phones and internetenabled computers, had grown significantly by 2007. Inside Indonesian homes, ownership rates of electrical appliances have risen, as shown by the 10% growth in value sales in 2007. Outlook There is still a long way to go before Indonesia graduates from its status as a developing country, but poverty levels are nevertheless expected to decline and the proportion of middle- to upper-income consumers to grow over the forecast period, driving the continuation of improved standards of living. By 2012, its projected that nearly 87% of Indonesian households will have annual disposable incomes above US$2,500. Impact Expenditure on various consumer products and services is expected to grow along with the improving economy. The packaged food sector, for example, is set to see double-digit growth in value sales every year over the forecast period, while soft drinks are set to grow by a CAGR of more than 7%. Expenditure on other products and services are also projected to grow as more Indonesians climb to middle- and upper-income levels. Even the method that consumers use to pay for their purchases is expected to change, with the financial cards sector set to grow by a CAGR of 8% over the forecast period.
Shrinking Indonesian Households Spur Demand for New Products and Services
Traditionally, Indonesians tend to live in large households, usually with members of their extended families. However, over the review period there was a noticeable trend toward smaller households, often consisting of married couples living by themselves and with their children rather than with their extended families. This has driven growing demand for a wide range of new home-related products. For example, in the household appliances sector, there has been growing demand for appliances with smaller capacities that are better suited to households with fewer members. There is also growing demand for better household cleaning products, as smaller families are less likely to be able to afford maid services, unlike those living in large extended families. Even mature sectors like laundry care products showed volume sales growth during the review period thanks to the increase in the number of smaller households. Outlook The number of smaller households in Indonesia is expected to continue to increase over the forecast period. Households with four occupants, often parents and two children, will become more common in the future, and their numbers are projected to rise from 14 million in 2007 to nearly 16 million by 2012. Households with five or more occupants will still be the majority, however, with over 25 million households projected in 2012. However, the trend toward smaller households will not go as far as including single-occupant households. They are very rare in Indonesia and will continue to be rare over the forecast period, declining to just 1.7 million by 2012, down from 1.9 million in 2007.
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Impact To cater to the demands of smaller households, its anticipated that manufacturers will begin providing their products in smaller portions and packages. As well, the size and capacity of home appliances is expected to change and these newer, smaller products are expected to drive new sales in the sector. Volume sales of home laundry appliances are projected to grow at a CAGR of more than 20% over the forecast period. Demand for refrigeration appliances will also increase, as many smaller households cannot buy their groceries daily and need refrigeration appliances to keep their food from spoiling.
Increasing Rate of Urbanisation Affects Consumer Food Choices

In 2006, the number of urban households overtook the number of rural households and going into 2007 the gap widened. In 2007, there were more than 31 million urban households, almost two million more than the number of rural households. The increasing urbanisation of Indonesia has resulted in many consumers leading busier, more fast-paced lifestyles. While the traditional practice of eating home-cooked food is still prevalent, there has been a change in eating patterns as more Indonesians spend less time, and eating away from home has become more common. While eating at street stalls/kiosks is already quite popular in urban areas, there has been strong growth of fast food restaurants to meet consumer demand for quick, convenient food. In fact, the number of fast food outlets grew by more than 9% in 2007 over prior year. Changing eating habits have also affected the packaged food industry as more households demand quicker meal solutions. Volume sales of frozen foods grew by 14% in 2007 and sales of canned/preserved food grew by 10%. Outlook The rate of urbanisation in Indonesia is not expected to decline, and the inherent faster pace is likely to affect even more consumers over the forecast period. By 2012, its projected that there will be more than 36 million urban households, while the number of rural households declines to 28 million. Impact The traditional practice of eating home-cooked food is likely to diminish, dining out will become more common, particularly as more Indonesians seek to use that time to socialise with their friends, not only at fast food restaurants but at cafs, as well. In addition, expenditure on various packaged food products, such as frozen food, ready meals and sauces, dressings and condiments is expected to grow over the forecast period, as preparing food from scratch will become, for many, a luxury. There will be continuing shift by consumers away from fresh food and the preparation of sauces using fresh spices. Electrical appliances that facilitate quicker meal preparation are also expected to be in great demand over the forecast period. Volume sales of microwave ovens, for example, are projected to grow at a CAGR of 8% over the forecast period, as are volume sales of rice cookers, reflecting the rising number of households looking for convenient ways to cook the staple food of Indonesia.
Awareness of Health and Wellness Issues Growing in Indonesia

For the most part, Indonesians are remain primarily concerned with improving the nutritional quality of their diets, as most continue to find themselves locked in low-income brackets with limited access to healthier foods. Therefore, the concept of health and wellness is still quite foreign to many Indonesians. However, in urban areas the issue has begun to take hold thanks to increased media exposure and an outbreak of diseases and conditions linked with sedentary lifestyles. Health-related products like vitamins and dietary supplements are now available in many stores as consumers become more focused on preventive health measures rather than curative ones. In addition, there is more coverage in the media devoted to health and wellness issues, shown by the growing number of magazines and newspaper supplements with health themes, such as Fit magazine. There are also websites that serve as health and wellness information portals, such as www.majalahkesehatan.com . Outlook The concept of health and wellness continues to spread among Indonesians, and its expected that it will be incorporated into many parts of Indonesian lifestyles over the forecast period. More Indonesians are expected to have access to nutritional products, and theyll be able to afford to purchase healthier foods rather than just basic
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foods. Beyond eating and drinking, health and wellness activities are expected to expand to include undertaking exercise regimens and other efforts leading to overall healthier lifestyles. All these will be supported by the growing coverage of health and wellness in the mass media, as well as by governmental campaigns. Impact Expenditure on healthy food and beverages is expected to grow at a CAGR of 7% over the forecast period. The interest in eating organic rice rather than traditional rice will grow, but growth will mostly be for fortified/functional products. With the issue of malnutrition still very relevant to a large portion of the Indonesian population, fortified/functional food and beverages are seen as an effective way to provide health benefits to the greatest number of Indonesians. As well, fortified/functional products are seen to offer more value for the money, as opposed to better for you products. Increased consumer demand for fortified/functional noodles and milk will drive sales of these and related products over the forecast period. Fitness centres and gyms are also expected to become more popular with consumers over the forecast period, particularly in urban areas, while over-the-counter (OTC) healthcare products and remedies are also expected to see increased sales. Volume sales of vitamins and dietary supplements are projected to grow at a CAGR of 11% over the forecast period as more consumers begin to understand the benefits of leading healthy lifestyles.
Advancing Technology Shapes Consumer Demand for Leisure and Communications Products
Technological innovations during the review period allowed Indonesian consumers to enjoy better alternatives in terms of entertainment and leisure. As well, technology-related products became more affordable and, thus, more available to the general population. Among the most obvious signs of this trend is the increased ownership of colour TV sets in Indonesia. In 1995, only 22% of Indonesian households owned colour TV sets, but by 2007 this surged to 83%. Advancements in communications technology also had a great impact on Indonesian consumers. The number of mobile telephone subscribers, for example, shot up from a mere 211,000 in 1995 to 63.8 million by 2006, onequarter of the population. In addition, the number of internet users grew by leaps and bounds during the review period, going from just 1.9 million in 2000 to 27 million in 2007. These increases were made possible by improvements in the technological infrastructure in Indonesia as well as by the declining unit costs of TV sets, mobile phones, internet subscriptions and computers during the review period. Outlook Technological advancements are expected to continue over the forecast period, and they are expected to continue to provide more options to Indonesian consumers. However, the government has not developed specific internet connectivity targets because of the inherent difficulties in the archipelago nature of the country, which makes it challenging to reach remote regions where even providing adequate electricity supply is a challenge. Regardless, over the forecast period its expected that alternative technologies, such as providing internet access via satellite technology, will help drive an increase in usage. Impact New technologies will increase the number of options for entertainment and communication over the forecast period, and the anticipated decline in unit prices will allow more households to be able to purchase these products. For example, volume sales of in-home consumer electronics products are projected to grow at a CAGR of 8% over the forecast period. At the same time, volume sales of mobile phones are expected to grow at a CAGR of 28% while volume sales of laptop computers grow at a CAGR of 40%. Strong growth in the mobile phone subsector will also be driven by more flexible top-up options available that will allow even low-income consumers to own mobile phones.
POPULATION
Population Change
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In 2007, with a population of 231.6 million, Indonesia ranked fourth globally behind China, India and the United States. During the review period, the population grew by more than 17%, although the rate slowed in the latter portion of the period. Between 2005 and 2007, the population grew by only 2.4%. Over the forecast period, its projected that the Indonesian population will grow by 8.6%, reaching 251.6 million in 2015, driven by healthy birth rates coupled with improving life expectancy, the result of better medical care. Improving life expectancy has also exacerbated the ageing of the Indonesian population. In 1995, the median age in Indonesia was 23.13 years; by 2007, that had increased to 27.16 years and by 2015 its projected to be 30.11 years. Relatively slower population growth was a result, in part, of successful family planning campaigns introduced by the government. As well, many young Indonesians, particularly young Indonesians in urban areas, have decided to get married at later ages and to have fewer children. By 2007, fertility rates and birth rates had dropped, although they were still higher than those in many other countries. Immigration has played a negligible role in population growth in Indonesia as its status as a developing country makes it less attractive for those seeking better standards of living. Impact Generally, with the ageing of the Indonesian population, expenditure on products targeted at older consumers is expected to rise significantly over the forecast period. For example, OTC products, in particular vitamins and dietary supplements, are expected to continue to see increased sales. Values sales of vitamins and dietary supplements grew by 28% in 2007.
Population by Gender
In 2007, the female population was slightly larger than the male population, continuing a trend achieved in 2005 when male population dropped below female population for the first time. Over the forecast period, female population growth is expected to outpace growth of the male population. There has been a gradual shift income sources, from agricultural sources to manufacturing, in Indonesia. Thus, the value of having male children who can work in the rice fields has become less crucial. As well, while in many ethnic groups male children are favoured over female children, such as in patriarchal cultures like Batak or Javanese cultures, this perception has been changing, with more parents accepting female children. In addition, females tend to live longer than males, and this has helped shift the balance in favour of the female population. The role of Indonesian women as consumers has become more important. While women are already the traditional purchasers of a wide range of consumer products, there has been an increasing emphasis on products specifically targeted at women. For example, in the soft drinks sector there are a number of brands targeted at female consumers. Kratingdaeng energy drink, traditionally associated with male consumers, has been pushed to cater to female consumers as well with a new low-sugar variant. There are also products like You C1000 vitamin drink which are positioned for female consumers via advertisement campaigns. In addition, consumer products traditionally associated with the female population, such as sanitary napkins, skin care products and colour cosmetics, have also all shown strong sales growth, due not just to the increased female population but also due to the stronger purchasing power of working Indonesian women.
Population by Marital Status

Marriage remains an important institution in Indonesian society, and co-habitation is still not socially acceptable in most cases. Most Indonesians go through a religious marriage ceremony prior to registering their marriage legally. During the review period, the number of married people in the population continued to rise alongside population growth, going from 84.7 million in 1995 to nearly 109 million in 2007, an increase of 28.6%. In contrast to trends in other countries, the number of divorced people in Indonesia declined during the review period, going from 2.4 million in 1995 to 1.7 million in 2007. Although divorce is not forbidden in Islam (the religion of most Indonesians) it is still highly frowned upon and many Indonesians consider it a very serious matter. The number of single Indonesians increased during the review period, going from 102 million in 1995 to 111 million in 2007, an increase of 9.4%. In terms of share, however, singles lost ground to married Indonesians,
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underlining the importance of marriage in Indonesian society. Likewise, the divorce rates are also much lower than the average in other countries. Impact The strength of the institution of marriage and the large numbers of Indonesians still getting married will help drive increased demand for a wide range of household and family-related products and services over the forecast period. Sales of such items as domestic electrical appliances, in-home consumer electronics products and white goods like washing machines are all expected to increase. During the review period, the housing sector grew significantly, fuelled by demand from the increasing number of newly married couples. With more married couples preferring to live on their own and the rising prices of houses, there has been noticeable growth in apartment ownership rate in urban areas, with the number of apartments increasing from less than eight million in 1995 to just below 15 million in 2007. This is expected to rise further over the forecast period, approaching 17 million apartments in 2015.
Population by Education
Educational standards in Indonesia improved during the review period, evidenced by the strong increase in the number of people completing secondary education. In the 1990s, the government raised the compulsory education level to nine years, covering primary and secondary levels, from the previous level of six years of primary education. The proportion of Indonesians without education is still quite high, registering at 9% in 2007. However, this is a marked improvement from the 16% reported in 1995. As well, while the proportion of the Indonesian population in 1995 who had completed only primary education outnumbered those who had completed secondary education, by 2000 that had reversed, with more Indonesians completing secondary education. The gap widened throughout the remainder of the review period, so that by 2007, 30% of the population had completed secondary education. Further, the proportion of Indonesians that completed higher education increased during the review period, rising from a mere 4% of the population in 1995 to 6% in 2007.
Population by Rural/urban Areas

Indonesia is largely known as an agricultural country, with farming the main livelihood of most families in the rural areas. However, more Indonesians moved to urban areas during the review period to earn better incomes. By 2006, for the first time there were more urban households than rural households in Indonesia, despite the number of rural households still growing until 2004, albeit at a much slower pace. Overall, during the review period the number of rural households increased slightly from 29.4 million in 1995 to 29.5 million in 2007. In contrast, over the same period the number of urban households jumped from 16.3 million in 1995 to 31.2 million in 2007, an increase of 91.6%. In the initial stages of urbanisation, Indonesians from villages and smaller towns flocked to the capital Jakarta or Surabaya, the countrys second largest city, in search of better job opportunities. The populations of these cities, particularly Jakarta, become strained even by 1990s. Overcrowding led more Indonesian families to settle in satellite cities, such as Tangerang, Bekasi, Depok and Bogor, allowing workers to commute to Jakarta. As a result, the population of Jakarta declined during the review period despite rising rates of urbanisation, with satellite cities like Tangerang growing in population. The population density in Indonesia varies considerably. The bigger islands of Kalimantan, Sumatera and Papue continue to be sparsely populated while the smaller island of Java has the highest population density in the world. Java traditionally attracted many people due to its fertile soil in contrast to the less fertile soil of Kalimantan, which is dedicated more for forestry rather than farming. In 2007, one-half of the Indonesian population lived in Java. Impact The fast pace of urban living influences expenditure patterns, with time-poor urban consumers often seeking convenience over all else. This bodes well for sales of such items as packaged and processed foods over the forecast period, as well as for related products like microwave ovens.
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As well, urban consumers are more apt to be influenced by marketing and media campaigns and be more aware of brands. Its expected that expenditure on branded clothing and footwear will increase over the forecast period, as will expenditure on consumer electronics products, facilitated by the improved electricity infrastructure in urban areas. Also, the increase in organized retail in urban areas will drive demand for a wider range of products, such as groceries, than might be available in rural areas.
Table 1 '000 1995 0-4 yrs 5-9 yrs 10-14 yrs 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Female Male TOTAL
Source: Note:
Population by Age and Gender: 1995/2000/2005/2007/2010/2015
2000 21,366 21,312 21,535 21,798 20,682 19,154 17,235 14,955 12,715 10,008 7,769 6,926 5,941 4,498 3,027 1,670 1,102 105,798 105,895 211,693
2005 21,754 21,176 21,217 21,370 21,476 20,294 18,815 16,957 14,694 12,414 9,657 7,369 6,394 5,243 3,676 2,180 1,376 113,111 112,952 226,063
2007 21,630 21,363 21,114 21,221 21,414 20,725 19,327 17,658 15,515 13,246 10,615 7,960 6,501 5,461 3,956 2,387 1,535 115,945 115,682 231,627
2010 21,155 21,614 21,102 21,082 21,102 21,145 20,005 18,575 16,721 14,406 12,043 9,218 6,858 5,705 4,348 2,701 1,818 120,015 119,584 239,600
2015 20,100 21,047 21,551 20,983 20,837 20,800 20,880 19,788 18,360 16,442 14,030 11,555 8,632 6,173 4,790 3,249 2,351 126,162 125,405 251,567
21,582 21,656 21,989 21,027 19,561 17,592 15,250 12,991 10,298 8,093 7,346 6,488 5,154 3,758 2,365 1,371 890 98,530 98,881 197,411
National statistics, UN, Euromonitor International As of 1st January
Table 2
Population by Age and Gender (% Analysis and % Growth): 1995/2007/2015/19952007/2007-2015
% of total population 1995 0-4 yrs 5-9 yrs 10-14 yrs 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Female Male TOTAL
Source: Note:
2007 9.34 9.22 9.12 9.16 9.24 8.95 8.34 7.62 6.70 5.72 4.58 3.44 2.81 2.36 1.71 1.03 0.66 50.06 49.94 100.00
2015 7.99 8.37 8.57 8.34 8.28 8.27 8.30 7.87 7.30 6.54 5.58 4.59 3.43 2.45 1.90 1.29 0.93 50.15 49.85 100.00
1995-2007 0.22 -1.35 -3.98 0.92 9.47 17.81 26.73 35.93 50.66 63.67 44.51 22.69 26.12 45.30 67.32 74.16 72.41 17.68 16.99 17.33
2007-2015 -7.07 -1.48 2.07 -1.12 -2.69 0.36 8.04 12.06 18.34 24.13 32.18 45.16 32.79 13.03 21.07 36.11 53.14 8.81 8.40 8.61
10.93 10.97 11.14 10.65 9.91 8.91 7.73 6.58 5.22 4.10 3.72 3.29 2.61 1.90 1.20 0.69 0.45 49.91 50.09 100.00
National statistics, UN, Euromonitor International As of 1 January
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Table 3 years
Median Age of Population: 1995/2000/2005/2007/2010/2015
1995 Median age of population

Source:
2000 24.79
2005 26.45
2007 27.16
2010 28.23
2015 30.11
23.13
National statistics, UN, Euromonitor International
Table 4 Change in years
Median Age of Population (Growth): 1995-2007/2007-2015
1995-2007 Median age of population

Source: National statistics, UN, Euromonitor International
2007-2015 2.95
4.03
Table 5 '000
Population Change: 1995/2000/2002/2004/2006-2007
1995 Live births Deaths Net migration Balance

Source:
2000 4,514.29 1,446.26 -193.31 2,874.71
2002 4,514.35 1,444.39 -179.98 2,889.98
2004 4,487.88 1,449.45 -184.27 2,854.16
2006 4,426.85 1,459.94 -184.94 2,781.97
2007 4,386.30 1,467.77 -179.56 2,738.97
4,547.34 1,511.71 -170.19 2,865.45
Table 6 % change
Population Change (% Growth): 1995-2007/2000-2007
1995-2007 Live births Deaths Net migration Balance

Source: Note: National statistics, UN, Euromonitor International As of 1 January
2000-2007 -2.84 1.49 -7.12 -4.72
-3.54 -2.91 5.51 -4.41
Table 7
Birth Rates: 1995/2000/2002/2004/2006-2007
per '000 inhabitants 1995 Birth rates Average of CLIFE countries

Source:
2000 21.3 17.0
2002 20.8 16.4
2004 20.1 16.3
2006 19.3 16.1
2007 18.9 16.0
23.0 18.7
Table 8
Death Rates: 1995/2000/2002/2004/2006-2007
per '000 inhabitants 1995 2000 2002 2004 2006 2007
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Death rates Average of CLIFE countries

Source:
7.7 8.6
6.8 8.4
6.6 8.4
6.5 8.3
6.4 8.3
6.3 8.3
Table 9
Birth Rates (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Birth rates Average of CLIFE countries

2000-2007 -2.39 -1.03
-4.10 -2.70
Table 10
Death Rates (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Death rates Average of CLIFE countries

2000-2007 -0.50 -0.04
-1.32 -0.29
Table 11 As stated
Fertility and Birth: 1995/2000/2002/2004/2006-2007
1995 Fertility rates (children born per female) Average age of women at childbirth (years)
Source:
2000 2.45 27.98
2002 2.38 27.90
2004 2.32 27.77
2006 2.24 27.64
2007 2.20 27.57
2.70 28.16
National statistics, Euromonitor International
Table 12 as stated
Fertility and Birth (Growth): 1995-2007/2000-2007
1995-2007 Fertility rates (percentage points) Average age of women at childbirth (years)
Source: National statistics, Euromonitor International
2000-2007 -0.25 -0.41
-0.50 -0.59
Table 13 '000/as stated
Population by Marital Status: 1995/2000/2002/2004/2006-2007
1995 Married Divorced Widowed Single TOTAL Average age of men at 84,762 2,427 8,144 102,078 197,411 23.94
2000 95,409 2,082 8,567 105,636 211,693 23.78
2002 99,436 1,973 8,756 107,300 217,466 23.72
2004 103,357 1,878 8,938 109,053 223,225 23.62
2006 107,153 1,792 9,127 110,793 228,864 23.51
2007 108,983 1,754 9,220 111,670 231,627 23.44
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first marriage (years) Average age of women at first marriage (years) Average age of men at marriage (years) Average age of women at marriage (years)
Source:
19.33 25.49 22.03
19.21 25.90 22.50
19.16 25.82 22.41
19.06 25.68 22.31
18.97 25.58 22.21
18.94 25.51 22.16
Table 14
Population by Marital Status (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
as stated 1995 Married (% of total population/% change) Divorced (% of total population/% change) Widowed (% of total population/% change) Single (% of total population/% change) Average age of men at first marriage (change in years) Average age of women at first marriage (change in years) Average age of men at marriage (change in years) Average age of women at marriage (change in years) TOTAL
Source:
2000 45.07 0.98 4.05 49.90
2007 47.05 0.76 3.98 48.21
1995-2007 28.58 -27.73 13.21 9.40 -0.50 -0.39 0.02 0.13
2000-2007 14.23 -15.75 7.63 5.71 -1.44 -1.41 -1.49 -1.49 9.42
42.94 1.23 4.13 51.71
100.00
100.00
100.00
17.33
Table 15
Marriage Rates: 1995/2000/2002/2004/2006-2007
per '000 population 1995 Marriage rates Average of CLIFE countries

Source:
2000 450.7 385.6
2002 457.3 384.7
2004 463.0 383.8
2006 468.2 382.9
2007 470.5 382.5
429.4 387.4
Table 16
Divorce Rates: 1995/2000/2002/2004/2006-2007
per '000 population 1995 Divorce rates Average of CLIFE countries

Source:
2000 9.8 33.4
2002 9.1 35.2
2004 8.4 37.0
2006 7.8 38.5
2007 7.6 39.3
12.3 29.1
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Table 17
Marriage Rates (Actual Growth): 1995-2007/2000-2007
Change in percentage points 1995-2007 Marriage rates Average of CLIFE countries

2000-2007 19.82 -3.11
41.14 -4.94
Table 18
Divorce Rates (Actual Growth): 1995-2007/2000-2007
Change in percentage points 1995-2007 Divorce rates Average of CLIFE countries

2000-2007 -2.26 5.84
-4.72 10.19
Table 19
Population by Highest Educational Attainment: 1995/2000/2002/2004/2006-2007 1995 2000 26,609 53,456 57,230 10,185 64,212 211,693 7 15 2,969 2002 24,861 56,124 61,372 11,007 64,102 217,466 7 15 3,176 2004 23,428 58,697 65,172 11,790 64,137 223,225 7 15 3,551 2006 22,085 61,201 68,939 12,504 64,136 228,864 7 15 3,657 2007 21,561 62,468 70,636 12,856 64,107 231,627 7 15 3,693
No education ('000) Primary ('000) Secondary ('000) Higher ('000) Other ('000) TOTAL ('000) Compulsory education commencement age (years) School leaving age (years) Higher education students inc. universities ('000)
Source:
31,239 46,703 46,300 7,942 65,227 197,411 2,230
Table 20
Population by Highest Educational Attainment (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007 1995 2000 12.6 2007 9.3 1995-2007 -30.98 2000-2007 -18.97
No education (% of the population / % growth) Primary (% of the population / % growth) Secondary (% of the population / % growth) Higher (% of the population / % growth) Other ('000) TOTAL (% of the
15.8
23.7 23.5 4.0 33.0 100.0
25.3 27.0 4.8 30.3 100.0
27.0 30.5 5.6 27.7 100.0
33.76 52.56 61.87 -16.2 17.33
16.86 23.43 26.22 -8.8 9.42
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population / % growth) Higher education students inc. universities (% of the population / % growth)
Source:
65.64
24.39
Table 21
Literacy Rates: 1995/2000/2002/2004/2006-2007
% of population aged 15+ 1995 Adult literacy rate Average of CLIFE countries
Source:
2000 89.2 90.8
2002 90.1 91.4
2004 90.4 92.1
2006 91.0 92.6
2007 91.4 92.9
86.1 86.8
Table 22
Literacy Rates (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Adult literacy rate Average of CLIFE countries

2000-2007 2.19 2.10
5.37 6.08
Table 23 '000
Population by Urban/Rural Locations and Major Cities: 1995/2000/2002/2004/2006-2007
1995 Rural households Urban households Major cities Jakarta Surabaya Medan Bandung Tangerang
Source:
2000 29,771.00 22,237.31 8,451 2,415 1,716 1,819 1,235
2002 29,879.30 25,161.70 8,285 2,355 1,695 1,738 1,254
2004 29,795.12 27,615.93 8,133 2,305 1,674 1,667 1,270
2006 29,626.69 30,019.85 7,985 2,253 1,653 1,603 1,280
2007 29,466.36 31,152.60 7,914 2,229 1,642 1,574 1,284
29,397.89 16,255.11 8,755 2,533 1,741 2,021 1,144
Table 24
Population by Urban/Rural Locations and Major Cities (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
As stated 1995 Rural households (% of households/% growth) Urban housholds (% of households/% growth) Major cities Jakarta(% of population/ % growth) Surabaya(% of 64.39 35.61 4.43 1.28 2000 57.24 42.76 3.99 1.14 2007 48.61 51.39 3.42 0.96 1995-2007 0.23 91.65 -9.60 -11.99 2000-2007 -1.02 40.09 -6.35 -7.71
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population/% growth) Medan(% of population/% growth) Bandung(% of population/ % growth) Tangerang(% of population/% growth)
0.88 1.02 0.58
0.81 0.86 0.58
0.71 0.68 0.55
-5.67 -22.15 12.27
-4.31 -13.51 4.01
Table 25 people per sq km
Population Density: 1995/2000/2002/2004/2006-2007
1995 Population density Average of CLIFE countries

Source:
2000 116.9 262.8
2002 120.0 268.0
2004 123.2 270.0
2006 126.3 277.4
2007 127.9 280.7
109.0 241.8
Table 26
Population Density (% Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Population density (people per sq km) Average of CLIFE countries
2000-2007 11.00 17.87
18.89 38.92
CONSUMER SEGMENTATION
Babies and Infants
During the review period, the number of babies and infants held relatively steady, declining by only 0.06%. The governments family planning policies encouraged families to have no more than two children, and this effort has been relatively successful. The declining birth rate is further linked to increased urbanisation. More people live in urban areas, and their busier lifestyles and the increased likelihood of women and mothers working made it more difficult for families to have too many children. More parents in Indonesia feel quite comfortable having two children, especially those in urban areas. Over the forecast period, the number of babies and infants is projected to decline at a more significant rate of 8.1%, reaching 11.9 million in 2015. Impact Even with the declining birth rate, the household penetration rate of milk formula is still far from optimal so that the growth has been strong. Likewise, nappies/.diapers/pants products recorded very good sales performances during the review period. More parents have switched to disposable nappies for their babies from reusable cloths due to their convenience. More baby-specific toiletry products have been launched in the Indonesian market in response in increase demand by parents. While volume sales of products related to babies and infants are expected to decline over the forecast period, value sales may increase as parents, with higher disposable incomes, spend more on higher quality products for the children they have. This would affect sales of such products as infant clothing and footwear, toys and games and baby food.
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Kids
As with babies and infants, the number of kids in the Indonesian population remained relatively steady during the review period, declining by less than one percent. In 1995, there were 25.8 million kids in the Indonesian population; by 2007, that had decreased to 25.7 million. On the other hand, in 2007 kids constituted a quite sizeable 11% proportion of the population. That share is projected to drop to less than 10% share by 2015, with the number of kids in the population declining by more than 3% to reach 24.9 million. The declines reflect the delayed effect of the success of government family planning programmes. Impact With quite a strong proportion of the Indonesian population being children, the toys and games sector fared quite well over the review period. Parents with increased disposable incomes had fewer children but they often spent more money for higher quality products. Manufacturers of fast-moving consumer goods have picked up on the growing impact of kids in parents purchasing decisions, and over the years they have come up with more products targeted specifically at kids. An example is the Dee Dee brand of children toiletries. Various packaged food brands are also strongly targeted at children, with the use of cartoon characters for the milk brand Milkuat. Over the forecast period, its expected that there will be an even stronger drive toward child-oriented products, such as toiletries, packaged food and beverages.
Tweenagers
The number of tweenagers declined by nearly 4% during the review period, going from 17.6 million in 1995 to 16.9 million in 2007. However, the number is expected to grow by nearly 2% over the forecast period, reaching 17.2 million in 2015. Impact Compared to kids, tweenagers have more influence on household purchasing decisions, and manufacturers pay increasingly closer attention to this age group. Clothing and footwear is one of the sectors that has benefited from the growing influence of tweenagers. More affluent tweenagers drive demand for computer-based games, VCDs, novels and comic books.
Teens
At the end of the review period, teenagers were those born in early 1990s, a period when the governments family planning programme was already firmly in place. In 2007, there were 29.7 million teens in Indonesia, a slight decrease from the 29.8 million teens in 1995. Over the forecast period, the number of teens is expected to decline by 0.28%, reaching 29.6 million in 2015. The average age of women at their first marriage in Indonesia was 18.94 years in 2007, a drop from 19.33 in 1995. Impact With relatively strong purchasing power, teens are becoming more influential in shaping expenditure patterns in a number of consumer categories, including clothing and footwear, portable consumer electronics products and computer-related products and games. In urban areas, internet usage is higher among teens compared to tweenagers. Newlywed women in their late teens tend to begin planning purchases related to establishing households and starting their families, although most begin their marriage living with extended family. This trend is changing gradually, and the number of smaller households is projected to increase over the forecast period.
Students
The number of university students in Indonesia increased by more than 65% during the review period, reaching 3.7 million in 2007, and over the forecast period this group is projected to grow a further 24.4%. Most universities and other institutions of higher education are located in urban areas, and students tend to fit in to
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the faster pace of life there. Spending a great deal of their time studying, students drive demand for products that promise convenience. As well, with most living on limited budgets, students are also very price-conscious consumers. Students typically socialize in cafes, entertainment venues and less formal eating establishments, such as fast food restaurants. Being less provincial and more aware of international ideas and trends through high rates of internet use, students tend to be more aware of brands and they often generate higher brand loyalties. Students at institutions of higher learning are also keen buyers of education-related equipment, not only books but also computers and computer peripherals, now classroom staples. Impact The number of students attending institutions of higher education in Indonesia is projected to increase by more than 24% over the forecast period, and this growth will drive increased volume sales of education-related products, such as computers. In particular, sales of laptops are expected to increase as unit prices decline over the forecast period. Student lifestyles are not expected to change significantly over the forecast period, which bodes well for expenditure at cafes and less formal restaurants.
People in Their Twenties

During the review period, the number of Indonesians in their twenties increased by more than 13%, going from 37.6 million in 1995 to 42.1 million in 2007. The increase stemmed from the fact that people in this age group were born during the early stages of the family planning scheme initiated by the government. Therefore, the influence of the scheme was quite minimal and the birth rate was still relatively high. However, over the forecast period the number of people in their twenties is projected to decline by 1.2%, reaching 41.6 million in 2015. In 2007, the average age of men at their first marriage was 23.44 years compared to 18.94 years for women. This is the stage for most men when they begin establishing their families, whether that be with extended family or simply with the immediate family in smaller households. The average age of women giving birth in 2007 was 27.57 years. Impact Indonesians in their twenties are typically at a stage when they are not only thinking about pursuing careers and establishing families but theyre actually doing it. Their situation is often affected by the fact that they often live, at least at first, with large extended families. Regardless, people in their twenties are expected to drive demand for infant and child-related products, including such items as diapers, clothing and footwear and toys and games. As well, young families living in their own houses will spur demand for a wide range of household goods and services.
People in Their Thirties

During the review period, the number of people in their thirties increased by nearly 31%, reaching almost 40 million in 2007. Over the forecast period, the number of people in their thirties is projected to grow by a further 10%, reaching 40.7 million in 2015. In Indonesia, most people in their thirties are married and most no longer live with their parents. By the time they reach their 30s, Indonesians are usually established in the workforce. Impact Consumers in their thirties typically drive demand for family- and home-related items. Those that live in their own houses buy furniture, in-home consumer electronics, domestic electrical appliances and white goods. People in their thirties also tend to purchase automobiles.
Middle-aged Adults
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Consumer Lifestyles
Indonesia
The growth of the number of middle-aged adults in Indonesia during the review period was significant, going from 37.4 million in 1995 to 53.8 million in 2007. By 2010, it is projected that nearly one-quarter of the Indonesian population will be middle-aged. Over the forecast period, its projected that the number of middleaged Indonesians will increase by more than 28%, reaching more than 69 million in 2015. Impact Most middle-aged Indonesians are already settled in their careers and with their families. A number of them are already having grandchildren. At their peak earning period, they form a strong consumer base. The expenditure patterns of middle-aged Indonesians revolve primarily around family needs and priorities. Expenditure on education is also based on spending by middle-aged parents, many of whom spend a large part of their earnings funding their childrens education.
Pensioners
Indonesia has an ageing population, and the number of older Indonesians is increased rapidly, by nearly 60%, during the review period. In 2007, there were 13.3 million Indonesian pensioners; by 2015, that number is projected to increase to 16.6 million. Better healthcare services were available to Indonesians from the 1970s onwards, and especially from the 1990s, and medical advances have contributed to the growing numbers of this age group. Furthermore, most pensioners were born during the countrys transition period, prior to independence or just recently after independence and most were in their twenties during the tumultuous two decades after independence, which affected the population number. Impact Pensioners account for the bulk of demand in terms of healthcare services, hospitals and medical products in Indonesia. The welfare system protecting them is far from established, and therefore costly treatments for older Indonesians have proven to be a challenge for those in low- and middle-income groups. As in most countries, more affluent families have better access to healthcare services. There are few consumer product sectors in Indonesia catering specifically to the needs of pensioners. Grocery products account for most of the expenditure of this group. Niche products targeted at the older population have enjoyed strong growth coming from a very small base, such as convalescence products, incontinence products, and OTC healthcare products.
Table 27 '000/as stated 1995 Babies/infants as % of total population
Source:
Babies and Infants: 1995/2000/2005/2007/2010/2015
2000 12,850 6.07
2005 13,173 5.83
2007 13,000 5.61
2010 12,535 5.23
2015 11,943 4.75
13,007 6.59
Table 28 % change
Babies and Infants (% Growth): 1995-2007/2007-2015
1995-2007 Babies/infants
2007-2015 -8.13
-0.06
Kids: 1995/2000/2005/2007/2010/2015
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Consumer Lifestyles
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1995 Kids as % of total population

Source:
2000 25,553 12.07
2005 25,531 11.29
2007 25,746 11.12
2010 25,943 10.83
2015 24,932 9.91
25,859 13.10
Table 30 % change
Kids (% Growth): 1995-2007/2007-2015
1995-2007 Kids
2007-2015 -3.16
-0.44
Tweenagers: 1995/2000/2005/2007/2010/2015
1995 Tweenagers as % of total population

Source:
2000 17,144 8.10
2005 16,937 7.49
2007 16,921 7.31
2010 16,988 7.09
2015 17,228 6.85
17,607 8.92
Table 32 % change
Tweenagers (% Growth): 1995-2007/2007-2015
1995-2007 Tweenagers
2007-2015 1.81
-3.90
Teens: 1995/2000/2005/2007/2010/2015
1995 Teens as % of total population

Source:
2000 30,464 14.39
2005 29,876 13.22
2007 29,661 12.81
2010 29,488 12.31
2015 29,578 11.76
29,781 15.09
Table 34 % change
Teens (% Growth): 1995-2007/2007-2015
1995-2007 Teens
2007-2015 -0.28
-0.40
People in their Twenties: 1995/2000/2005/2007/2010/2015
1995 People in their twenties 37,152
2000 39,836
2005 41,770
2007 42,139
2010 42,247
2015 41,636
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Consumer Lifestyles
Indonesia
as % of total population
Source:
18.82
18.82
18.48
18.19
17.63
16.55
Table 36 % change
People in their Twenties (% Growth): 1995-2007/2007-2015
1995-2007 People in their twenties

2007-2015 -1.19
13.42
People in their Thirties: 1995/2000/2005/2007/2010/2015
1995 People in their thirties as % of total population

Source:
2000 32,190 15.21
2005 35,773 15.82
2007 36,984 15.97
2010 38,580 16.10
2015 40,668 16.17
28,241 14.31
Table 38 % change
People in their Thirties (% Growth): 1995-2007/2007-2015
1995-2007 People in their thirties

2007-2015 9.96
30.96
Middle-aged Adults: 1995/2000/2005/2007/2010/2015
1995 Middle aged adults as % of total population

Source:
2000 43,359 20.48
2005 50,529 22.35
2007 53,836 23.24
2010 59,247 24.73
2015 69,019 27.44
37,379 18.93
Table 40 % change
Middle-aged Adults (% Growth): 1995-2007/2007-2015
1995-2007 Middle aged adults

2007-2015 28.20
44.03
Older Population: 1995/2000/2005/2007/2010/2015
1995 Older population as % of total population

Source:
2000 10,297 4.86
2005 12,474 5.52
2007 13,340 5.76
2010 14,572 6.08
2015 16,563 6.58
8,384 4.25
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Consumer Lifestyles
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Table 42 % change
Older Population (% Growth): 1995-2007/2007-2015
1995-2007 Older population

2007-2015 24.16
59.11
HOUSEHOLD PROFILES
Households by Number of Occupants
Indonesians have very strong sense of family, and most live in big households with grandparents, parents and children. It is also quite common to have uncles and aunts especially single ones in the household. Therefore, during the review period households with more than five persons accounted for the bulk of household population with strong 40% share. In fact, the number of households with more than five persons continued to rise over the review period. Regardless, there is a trend towards smaller households, and the share of households with more than five persons fell slightly from 44% in 1995 to just over 40% in 2007. The strongest growth was in the number of two-person households, which grew by 20% between 2000 and 2007, accounting for just 12% of total households in 2007. More married couples in Indonesia, especially in urban areas, purchase houses quite soon after marriage rather than staying with their parents. As well, married couples in urban areas increasingly have children at later age, adding to the growth of two-person households. The number of four-person households, often with parents and two children, is also growing and chipping away at the share of larger households. Impact The trend towards smaller households reflects increased home ownership, and married couples wanting their own homes now apply for mortgages to buy built houses rather than going through the more traditional practice of buying land and building a house themselves (or living with their parents). Sectors such as household products and services have also benefited from the rising number of smaller households, with stronger demand for housewares and house cleaning products. As well, there is positive impact on demand for domestic electrical appliances, particularly small-size appliances.
Household Annual Disposable Income

It is not uncommon to have a several people earning incomes in Indonesian households. Because of this, the bulk of Indonesian households reported disposable income between US$2,500 and US$5,000 in 2007. The biggest growth between 2000 and 2007 (more than 677%) was in the number of households with disposable income between US$5,000 to US$10,000. The disposable income average per household occupant grew more strongly than the growth in the disposable income per household during the review period. Impact The rise in disposable income during the review period has led to overall better living standards and increased purchasing power, boosting sales in a wide range of sectors. While various food and beverage products benefited, other high-end sectors such as domestic electrical appliances and consumer electronics also reaped rewards with double-digit growth. More households purchased television sets and refrigeration appliances, even in the rural areas, and more urban households purchased time-saving items like washing machines.
Home Ownership
Most Indonesian families own their homes rather than rent them. In 2007, 84% of Indonesian households were owned and fewer than 9% were rented. There are still many issues associated with renting houses in Indonesia, most related to family size. Most rented homes are occupied by young married couples.
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Consumer Lifestyles
Indonesia
Most households occupy semi-detached and terraced houses; 69% of households live in this type of dwelling. Most have either two or three bedrooms, but there is a trend towards having more rooms in line with increasing affluence. Apartments are still rather rare in Indonesia, and they are usually found in the urban areas. Apartments are either government-built to house poorer families or luxurious condominiums owned by affluent families, often as a second or third home in city centres. However, with houses less affordable, there has been a trend towards buying apartments in bigger cities. Impact As home ownership is already high in Indonesia, there is no significant mortgage credit sector. On the other hand, high levels of home ownership mean that many households have more disposable income because they arent paying back mortgages. Many families, for example, can afford to own a car or at least a motorcycle. Households can also afford to purchase a wide range of household products and services, and they are more likely to do so as home owners rather than as renters.
Possession of Household Durables

Affordable leisure is important to most Indonesians, and this is reflected by colour TV sets being the most common item found in Indonesian households. Ownership of colour TVs grew strongly during the review period, and by 2007 there was ownership rate of 83% compared to just 52% in 2000. Traditionally, cassette/radio players were the most popular items, followed by black and white TVs, but with technology advances colour TVs have become much more affordable. With numerous free channels available, most households consider watching TV to be very affordable leisure activity. Other products that saw rising popularity over the review period included cookers and showers, reflecting the switch from traditional Indonesia appliances to Western-style items. Traditionally, Indonesian households used stoves with kerosene to cook their food, and the traditional way of showering was to use a ladle to scoop water from a big water basin. However, with declining unit prices for cookers and showers, these traditional practices have gradually diminished. Impact Much importance in Indonesia is placed on affordable entertainment, and this was a boon to the consumer electronics sector during the review period, particularly with increased sales of colour TV sets. The more mobile lifestyle, especially in the urban areas, spurred sales of portable consumer electronics products, particularly mobile phones. Demand for domestic electrical appliances industry also grew, particularly demand for cookers, refrigerators and washing machines, and this is expected to continue over the forecast period. Even the more sophisticated household items like air conditioning units and microwave ovens saw increased sales during the review period, and again this is expected to continue over the forecast period.
Pet Ownership
Owning a pet is not yet common practice in Indonesia, as the majority of the population are still in low- to middle-income brackets, and to most owning a pet is still seen as a luxury. The need to have pets for companionship is not an issue for most Indonesians, many of whom live in large households. For those who do own pets, smaller pets that require relatively less maintenance are popular. During the review period, fish were the most popular pets in Indonesia, just ahead of birds. Small fish are sold in fish markets for very low prices and even children from low-income families purchase them. Bird owners are more commonly male adults, living in both rural and urban areas. Of the bigger pets, cats are much more popular than dogs. In fact, many families have stray cats roaming around their homes and they feed them with leftovers. As these cats are not officially counted as pets, the reported level of cat ownership in Indonesia appears to be lower than it actually is. Dogs are the least popular pets due to religious restrictions. With a large Muslim population, dog owners face an obstacle since dogs are considered to be unclean animals in Islam. This, dog owners are mostly non-Muslims or affluent Muslims who keep watchdogs. Nonetheless, there are a small number of less devout Muslim families in urban areas who keep dogs.
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Impact Although pet ownership is still relatively low, it did grow during the review period in line with increasing disposable incomes. This growth benefited the pet food and pet care products industry. Food for small pets, such as fish and birds, is relatively cheap. However, pet cats and pet dogs are still often fed with leftover food, of which there are plenty in most homes since Indonesians still live in large households and mostly eat homecooked food. Regardless, sales of packaged dog and cat food grew strongly over the review period, in line with the trend of toward smaller households (especially in urban areas) and families having less time to cook and, thus, having less leftover food for their pets. Especially among the middle- to upper-income families, there is growing perception of dog and cat food being healthier than leftover food, and this has boosted sales.
Table 43 '000 1995 1 person 2 persons 3 persons 4 persons 5+ persons TOTAL
Source:
Households by Number of Occupants: 1995/2000/2002/2004/2006-2007
2000 2,122 6,053 10,838 11,863 21,132 52,008
2002 2,110 6,450 11,697 12,794 21,990 55,041
2004 2,014 6,784 12,108 13,357 23,149 57,411
2006 1,965 7,163 12,679 13,983 23,857 59,647
2007 1,929 7,275 12,832 14,174 24,409 60,619
2,447 4,835 8,537 9,861 19,973 45,653
Table 44
Households by Number of Occupants (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
% of total households / % growth 1995 1 person 2 persons 3 persons 4 persons 5+ persons TOTAL
Source:
2000 4.08 11.64 20.84 22.81 40.63 100.00
2007 3.18 12.00 21.17 23.38 40.27 100.00
1995-2007 -21.18 50.47 50.31 43.74 22.21 32.78
2000-2007 -9.11 20.19 18.40 19.48 15.51 16.56
5.36 10.59 18.70 21.60 43.75 100.00

Table 45 number
Occupants per Household: 1995/2000/2002/2004/2006-2007
1995 Occupants per household at January 1st (number) Average of CLIFE countries
Source:
2000 4.1 3.7
2002 4.0 3.6
2004 3.9 3.6
2006 3.8 3.5
2007 3.8 3.5
4.3 3.8
Table 46
Occupants per Household (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Occupants per household at January 1st (number) Average of CLIFE countries
2000-2007 -0.25 -0.16
-0.50 -0.34
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Table 47 '000
Number of Households by Disposable Income Bracket: 1995/2000/2002/2004/2006-2007
1995 above US$500 above US$750 above US$1,000 above US$1,750 above US$2,500 above US$5,000 above US$7,500 above US$10,000 above US$15,000 above US$25,000 above US$35,000 above US$45,000 above US$55,000 above US$65,000 above US$75,000 Total
Source:
2000 51,052 49,191 46,117 31,522 17,165 2,567 1,495 1,033 613 318 206 149 115 93 77 52,008
2002 54,287 52,832 50,406 38,084 23,832 4,122 1,914 1,322 785 407 264 191 148 119 99 55,041
2004 56,490 55,024 52,802 42,520 30,401 7,683 2,804 1,693 1,012 529 345 251 194 157 131 57,411
2006 58,938 57,881 56,313 48,939 39,308 14,306 5,472 2,732 1,400 734 480 349 271 220 183 59,647
2007 60,095 59,320 58,163 52,564 44,725 19,967 8,423 4,173 1,797 943 617 449 349 282 236 60,619
44,412 42,738 40,431 31,250 21,940 6,032 2,279 1,253 752 396 259 189 147 119 100 45,653
Table 48
Number of Households by Disposable Income Bracket (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% of total households 1995 above US$500 above US$750 above US$1,000 above US$1,750 above US$2,500 above US$5,000 above US$7,500 above US$10,000 above US$15,000 above US$25,000 above US$35,000 above US$45,000 above US$55,000 above US$65,000 above US$75,000 Households
Source:
2000 98.16 94.58 88.67 60.61 33.01 4.94 2.88 1.99 1.18 0.61 0.40 0.29 0.22 0.18 0.15 100.00
2007 99.14 97.86 95.95 86.71 73.78 32.94 13.90 6.88 2.96 1.56 1.02 0.74 0.58 0.47 0.39 100.00
1995-2007 35.31 38.80 43.86 68.21 103.85 231.03 269.56 233.15 138.86 138.24 137.84 137.54 137.30 137.10 136.93 32.78
2000-2007 17.71 20.59 26.12 66.75 160.56 677.71 463.32 304.05 193.15 196.81 199.24 201.07 202.54 203.77 204.83 16.56
97.28 93.61 88.56 68.45 48.06 13.21 4.99 2.74 1.65 0.87 0.57 0.41 0.32 0.26 0.22 100.00
Table 49 '000
Total Housing Stock and New Dwellings Completed: 1995/2000/2005/2007/2010/2015
1995 Housing stock New dwellings completed New dwellings as % of total housing stock
Source:
2000 46,731 287 0.61
2005 53,383 223 0.42
2007 56,122 217 0.39
2010 58,859 212 0.36
2015 61,130 209 0.34
46,002 314 0.68
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Table 50 % change
Total Housing Stock and New Dwellings Completed (% Growth): 1995-2007/2007-2015
1995-2007 Housing stock New dwellings completed

2007-2015 8.92 -3.37
22.00 -30.96
Table 51 '000
Households by Tenure and Type of Dwelling: 1995/2000/2005/2007/2010/2015
1995 Households by tenure Home owner Rented Other TOTAL Households by type of dwelling Detached house Semi-detached and terraced house Apartment Other TOTAL
Source:
2000 43,158 4,365 4,485 52,008 2,591 35,617 11,913 1,887 52,008
2005 49,096 5,046 4,415 58,557 2,859 39,924 14,012 1,762 58,557
2007 50,942 5,301 4,375 60,619 2,936 41,256 14,760 1,666 60,619
2010 53,436 5,537 4,283 63,256 3,028 42,935 15,654 1,639 63,256
2015 56,400 5,986 3,984 66,371 3,114 44,848 16,875 1,534 66,371
38,134 3,564 3,955 45,653 2,561 32,523 7,692 2,878 45,653
Table 52
Households by Tenure and Type of Dwelling (% Analysis and % Growth): 1995/2000/2007/1995-2007/2007-2015
% analysis / % growth 1995 Households by tenure Home owner Rented Other TOTAL Households by type of dwelling Detached house Semi-detached and terraced house Apartment Other TOTAL
2000 83.0 8.4 8.6 100.0 5.0 68.5 22.9 3.6 100.0
2007 84.0 8.7 7.2 100.0 4.8 68.1 24.3 2.7 100.0
1995-2007 33.6 48.8 10.6 32.8 14.7 26.9 91.9 -42.1 32.8
2007-2015 10.7 12.9 -8.9 9.5 6.0 8.7 14.3 -7.9 9.5
83.5 7.8 8.7 100.0 5.6 71.2 16.8 6.3 100.0
Table 53 '000
Households by Number of Rooms: 1995/2000/2002/2004/2006-2007
1995 1 room 2 rooms 3 rooms 4 rooms 14,563 17,545 9,925 2,369
2000 9,101 22,373 15,317 3,240
2002 8,641 23,979 16,817 3,525
2004 8,218 25,254 17,842 3,738
2006 7,863 26,394 19,061 4,019
2007 7,466 27,065 19,627 4,126
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Consumer Lifestyles
Indonesia
5+ rooms TOTAL
Source:
1,251 45,653
1,977 52,008
2,079 55,041
2,359 57,411
2,311 59,647
2,335 60,619
Table 54
Households by Number of Rooms (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
% of total households 1995 1 room 2 rooms 3 rooms 4 rooms 5+ rooms TOTAL

Source:
2000 17.50 43.02 29.45 6.23 3.80 100.00
2007 12.32 44.65 32.38 6.81 3.85 100.00
1995-2007 -48.73 54.26 97.75 74.15 86.68 32.78
2000-2007 -17.97 20.97 28.14 27.34 18.13 16.56
31.90 38.43 21.74 5.19 2.74 100.00

Table 55 % of households
Ownership of Household Durables: 1995/2000/2005/2007/2010/2015
1995 Air conditioner Bicycle Black and white TV set Cable TV Camera Cassette/radio player CD player DVD player/recorder Colour TV set Cooker Dishwasher Freezer Hi-fi stereo Microwave oven Mobile telephone Motorcycle Passenger car Personal computer Internet enabled computer Piano Refrigerator Satellite TV system Sewing machine Shower Telephone Tumble drier Vacuum cleaner Video camera Video game console Videotape recorder Washing machine
Source:
2000 3.4 38.4 38.0 0.1 8.9 59.8 1.3 0.0 52.0 33.2 0.2 5.8 6.9 9.8 2.3 7.7 5.1 0.6 0.2 0.9 15.3 8.0 39.0 43.8 11.2 1.3 15.2 0.1 0.2 2.0 15.1
2005 5.3 44.0 18.0 0.4 12.2 53.3 1.7 1.3 77.0 41.5 1.5 10.9 18.2 18.0 20.4 8.8 6.6 9.6 2.8 1.1 21.2 8.0 36.0 48.2 15.5 1.8 24.7 0.2 0.3 2.5 23.4
2007 6.0 45.9 13.9 0.6 13.6 52.2 1.8 2.5 82.8 44.6 2.6 12.7 22.5 20.4 33.7 9.2 7.2 12.4 4.5 1.3 23.2 8.0 34.9 49.9 17.4 2.0 28.6 0.2 0.3 2.4 25.9
2010 7.0 48.4 9.5 1.0 15.7 50.3 1.8 4.8 88.0 48.7 4.5 14.8 26.4 23.8 49.4 9.8 8.1 18.6 8.3 1.4 26.0 8.1 33.2 52.5 20.3 2.3 35.0 0.2 0.3 2.2 28.9
2015 8.6 51.5 5.0 1.6 19.1 47.9 1.7 8.3 93.1 54.1 6.8 17.1 29.8 28.1 64.5 10.4 9.6 26.6 17.5 1.7 30.1 8.1 30.3 56.8 24.8 2.8 43.7 0.3 0.3 1.7 32.4
1.9 31.6 45.8 0.0 5.8 61.1 0.8 0.0 22.0 25.2 0.0 2.8 2.0 3.4 0.0 4.8 3.9 0.1 0.0 0.6 8.4 6.7 42.7 39.4 7.0 0.7 8.4 0.1 0.2 1.4 6.8
Table 56 percentage points
Ownership of Household Durables by Type (Actual Growth): 1995-2007/2007-2015
1995-2007
2007-2015
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Consumer Lifestyles
Indonesia
Air conditioner Bicycle Black and white TV set Cable TV Camera Cassette/radio player CD player DVD player/recorder Colour TV set Cooker Dishwasher Freezer Hi-fi stereo Microwave oven Mobile telephone Motorcycle Passenger car Personal computer Internet enabled computer Piano Refrigerator Satellite TV system Sewing machine Shower Telephone Tumble drier Vacuum cleaner Video camera Video game console Videotape recorder Washing machine
4.12 14.35 -31.87 0.64 7.78 -8.91 1.04 2.49 60.80 19.33 2.62 9.91 20.53 17.01 33.74 4.47 3.31 12.36 4.53 0.66 14.85 1.39 -7.81 10.46 10.41 1.28 20.17 0.14 0.04 0.99 19.05
2.56 5.62 -8.94 0.91 5.50 -4.27 -0.19 5.85 10.30 9.47 4.17 4.37 7.30 7.71 30.73 1.19 2.38 14.18 12.93 0.41 6.87 0.01 -4.61 6.89 7.35 0.80 15.10 0.06 0.02 -0.62 6.45
Table 57 '000s of animals
Pet Population: 2000/2002/2003/2004/2006/2007
2000 Pet population Small mammal population Reptile population Dog and cat population Dog population Cat population Other pet population Bird population Fish population Small mammal/reptile population
Source:
2002 11,512 18 18 995 280 715 10,517 965 9,516 36
2003 12,696 18 18 1,085 295 790 11,611 975 10,600 36
2004 13,419 19 18 1,181 305 876 12,238 1,002 11,200 36
2006 14,294 20 19 1,404 320 1,084 12,890 1,027 11,824 39
2007 14,518 21 20 1,529 342 1,187 12,989 1,007 11,942 40
9,312 19 19 825 240 585 8,487 883 7,566 38
HOUSEHOLD SEGMENTATION
Single-person Households
Single-person households are uncommon in Indonesia, a country where it is the norm for people to live with their extended families. Historically having the least number of households, their number continued to fall over the review period, dropping to less than two million in 2007. Over the forecast period, the number of singleperson households is expected to continue dropping, reaching fewer than 1.6 million by 2015. A significant
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Consumer Lifestyles
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portion of single-person households are occupied by the elderly or adults without close relatives. Children usually leave home only when they get married, and the concept of them living alone once they get jobs is mostly unheard of. Impact While there is a trend toward smaller households, this does not go as far as single-person households. Unlike in other countries, the number of single-person households in Indonesia is declining and by 2015 they will account for only 2.4% of total households. Thus, single-person households have little impact on consumer expenditure patterns, marketing or product development.
Couples Without Children

When Indonesian couples get married, the strong expectation is that they will have children. It is considered unusual to be married and to intentionally not have children. Family planning is a well-known concept in Indonesia, and many married couples use contraceptives after having two children. Despite the relatively low number of couples without children (this is the smallest type of household after single-person households and single-parent family households) their number continued to rise during the review period, growing at the fastest rate of all household types. And growth is expected to remain strong over the forecast period, primarily due to improvements in health facilities and increased life expectancies in Indonesia. The majority of couples without children are elderly married couples whose all children have gotten married and who now live in their own households. Their number has, therefore, risen with improved life expectancies. Also contributing to the rise is the trend of young married couples waiting longer before having their first child, especially when both want to first establish their careers. Impact Couples without children often have quite increased purchasing power as they do need to allocate big chunks of disposable income to childrens needs. This will drive demand, particularly among older couples, for what may be considered non-necessary products, ranging from travel packages, in-home consumer electronic products and domestic electrical appliances.
Couples With Children

Households occupied by couples with children are the most common type of household in Indonesia, and their number continued to grow throughout the review period. Having children is considered to be very much the norm in Indonesia. It is also common to live with members of the extended family, including grandparents, aunts and uncles. On the other hand, the share of this type of household among total households declined during the review period, going from 64.7% of total households in 1995 to nearly 57% in 2007. Impact The number of households occupied by couples with children is expected to continue to rise, albeit slightly, over the forecast period, reaching 34.8 million in 2015. This will drive continuing demand for products targeted at children and families. As well, this will increased demand for a wide range of household products and services, including electrical appliances and white goods.
Single-parent Families
Single-parent households in Indonesia are very rare. Most are occupied by divorcees or widowed parents with children. Having children outside of marriage is still highly unacceptable in Indonesian society, and single mothers with children seldom live alone, instead tending to live with their parents. The number of single-parent households is expected to decline over the forecast period, as cultural norms are unlikely to change significantly. Impact Single-parent households in Indonesia are often low-income households, and what disposable income there is available is usually devoted to childrens needs. It is assumed that single mothers with children will live with
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their parents, who can take care of the children when the mothers go to work, therefore products designed to provide more convenience for working single mothers are not common.
Table 58 '000 1995 Single person Couple without children Couple with children Single-parent family Other Households
Source: Note:
Households by Type: 1995/2000/2005/2007/2010/2015
2000 2,122 5,754 32,463 4,195 7,474 52,008
2005 1,986 7,367 34,243 4,492 10,469 58,557
2007 1,929 7,791 34,517 4,519 11,863 60,619
2010 1,801 8,722 34,537 4,483 13,713 63,256
2015 1,578 10,247 34,853 4,368 15,323 66,371
2,447 4,027 29,559 3,422 6,198 45,653
Euromonitor International from trade sources and national statistics Figures stated as zero refer to a negligible percentage of total households
Table 59
Households by Type (% Analysis and % Growth) 1995/2007/2015: /1995-2007/2007-2015
% analysis/% growth 1995 Single person Couple without children Couple with children Single-parent family Other Households
Source: Note:
2007 3.18 12.85 56.94 7.45 19.57 100.00
2015 2.38 15.44 52.51 6.58 23.09 100.00
1995-2007 -21.18 93.47 16.77 32.06 91.40 32.78
2007-2015 -18.18 31.53 0.97 -3.33 29.17 9.49
5.36 8.82 64.75 7.50 13.58 100.00
Euromonitor International from trade sources and national statistics Figures stated as zero refer to a negligible percentage of total households
LABOUR
Working Conditions
Working conditions in Indonesia vary widely across the public and private sectors and also among the types of labour involved, i.e., manual labour and blue- and white-collar work. Working conditions for workers in manufacturing are quite tough, as they are characterised by low wages and long hours, although there is a shift system. In the public sector, working hours tend to be shorter. There is no established culture of strong labour unions in Indonesia, and working conditions are largely established by the employers rather than the workers. Most private companies set starting times at 8 a.m. and the end of workday is usually 5 p.m. Civil servants have shorter working hours. The practice of work on Saturdays is still common, although less so in the private sector. There is no fixed rule prohibiting Saturday as a work day, although regional governments have periodically discouraged the practice to allow Indonesian workers to enjoy more time off.
Employed Population by Age

Being a relatively young population, there are many young Indonesians in the employed population. The biggest employed age group during the review period were those between the ages of 25 and 39 years-old, which accounted for 49.5% of the total working force. There is a growing trend of more older people working, as the government has extended the retirement age for civil servants.
Unemployed Population by Age

Unemployment is still a big issue in Indonesia, as the number of new jobs created has not kept pace with the increasing population. The unemployment rate rose over the review period, reaching 11% in 2007.
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Unemployment primarily affects the younger population, and the race to find a job after graduation from secondary school or university is very competitive, with the lack of work experience always a stumbling block. There is a stark difference between the numbers of unemployed between 15-20 years-old compared to those over 30 years-old.
Part-time Employment
Part-time employment is not common in Indonesia, particularly with the already stiff competition to get and keep jobs. When people work part-time, it is usually in a second job meant to supplement their main income, and that is usually done without knowledge of their main employer. The majority of part-time workers in Indonesia are women. Part-time jobs for women in urban areas include multi-level marketing work (MLM). Women are considered to be good at MLM because of their habit of gathering and chatting in groups. Women are also targets of MLM products, such as shoes, handbags, gold products and health food. Most women are in better positions than men to take on such jobs, since they tend to have more spare time. Typical part-time jobs for men include selling life insurance policies and/or related products and teaching. The latter can range from providing extra lessons to schoolchildren to being an honorary lecturer at a university. To supplement their sometime meagre incomes, some highly educated, low-income men provide extra tuition to schoolchildren.
Table 60 '000 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Employed male population Employed female population Total employed population
Source:
Employed Population by Age Group: 1995/2000/2002/2004/2006-2007
2000 6,754 10,812 11,892 11,782 11,291 9,838 7,726 5,761 4,557 3,895 3,345 54,899 32,754 87,652
2002 5,612 10,748 12,253 12,338 11,657 10,373 8,390 6,078 4,575 4,034 3,395 56,684 32,769 89,452
2004 5,272 11,182 12,810 12,676 12,208 10,938 9,083 6,721 4,770 4,132 3,398 59,315 33,875 93,191
2006 4,635 10,789 12,343 12,777 12,476 11,683 9,714 7,261 4,980 4,303 3,676 61,332 33,306 94,637
2007 5,570 11,040 13,081 13,309 13,128 12,185 10,382 7,901 5,447 4,087 3,913 63,991 36,051 100,043
7,014 8,375 11,012 10,707 10,088 8,068 6,418 5,526 4,159 3,256 2,969 48,262 29,332 77,593
ILO, Euromonitor International
Table 61
Employed Population by Age Group (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
% analysis / % growth 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Employed male population Employed female 9.04 10.79 14.19 13.80 13.00 10.40 8.27 7.12 5.36 4.20 3.83 62.20 37.80 2000 7.71 12.34 13.57 13.44 12.88 11.22 8.81 6.57 5.20 4.44 3.82 62.63 37.37 2007 5.57 11.04 13.08 13.30 13.12 12.18 10.38 7.90 5.44 4.09 3.91 63.96 36.04 1995-2007 -20.59 31.83 18.79 24.30 30.13 51.03 61.76 42.97 30.96 25.50 31.80 32.59 22.91 2000-2007 -17.53 2.11 10.00 12.96 16.27 23.85 34.38 37.14 19.53 4.92 17.00 16.56 10.07
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population Total employed population

Source: ILO, Euromonitor International
100.00
100.00
100.00
28.93
14.14
Table 62 '000
Unemployed Population by Age Group: 1995/2000/2002/2004/2006-2007
1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Unemployed male population Unemployed female population Total unemployed population
Source:
2000 1,792 2,131 1,025 432 213 137 156 76 54 59 75 3,352 2,799 6,150
2002 2,838 2,942 1,306 595 392 246 200 224 174 151 221 4,886 4,404 9,290
2004 3,027 3,251 1,393 654 379 271 203 220 184 257 412 5,346 4,906 10,251
2006 3,029 4,001 1,769 731 371 278 210 244 230 270 319 5,773 5,679 11,452
2007 2,503 3,400 1,570 772 458 250 192 189 189 219 286 4,857 5,170 10,027
1,022 2,109 625 183 73 21 13 15 5 5 3 1,852 2,221 4,074
ILO, Euromonitor International
Table 63
Unemployed Population by Age Group (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis / % growth 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Unemployed male population Unemployed female population Total unemployed population
2000 29.14 34.64 16.66 7.02 3.46 2.23 2.54 1.24 0.88 0.96 1.22 54.49 45.51 100.00
2007 24.96 33.90 15.66 7.70 4.57 2.49 1.92 1.89 1.88 2.19 2.85 48.44 51.56 100.00
1995-2007 144.92 61.23 151.19 322.66 527.18 1,084.44 1,374.01 1,140.33 3,759.12 4,317.60 8,082.43 162.22 132.74 146.15
2000-2007 39.64 59.57 53.21 78.72 115.25 81.99 22.92 147.71 246.99 272.38 281.35 44.93 84.72 63.04
25.08 51.76 15.34 4.48 1.79 0.52 0.32 0.37 0.12 0.12 0.09 45.47 54.53 100.00
Table 64
Unemployment Rate: 1995/2000/2002/2004/2006-2007
% of economically active population 1995 Unemployment rate (% of economically active 5.0 2000 6.2 2002 9.2 2004 9.9 2006 10.6 2007 10.8
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population) Average of CLIFE countries

8.4
8.8
8.9
8.6
7.6
7.1
Table 65
Unemployment Rate (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Unemployment rate (% of economically active population) Average of CLIFE countries
2000-2007 4.61 -1.65
5.82 -1.29
Table 66 '000
Part-Time Employment by Gender: 1995/2000/2002/2004/2006
1995 Male Female TOTAL

2000 389 693 1,082
2002 380 684 1,064
2004 382 673 1,056
2006 392 662 1,054
418 698 1,116
Table 67
Part-Time Employment by Gender (% Analysis and % Growth) 1995/2000/2006: /19952006/2000-2006
% of part-time employees/% growth 1995 Male Female TOTAL

2000 35.93 64.07 100.00
2006 37.20 62.80 100.00
1995-2006 -6.14 -5.18 -5.54
2000-2006 0.86 -4.50 -2.57
37.44 62.56 100.00
INCOME
Annual Disposable Income
In line with the improved performance of the economy, mean annual disposable income increased in Indonesia during the review period across all educational levels and across both genders. While high inflation rates dampened the increase in local currency, there was still strong growth, and the number of people below the poverty line declined.
Income by Educational Attainment

Not surprisingly, mean annual disposable income for Indonesians with tertiary education is on average higher than that of those who have only completed secondary and primary education. The gap is quite significant, with workers with tertiary educational qualifications earning more than twice as much of those with only secondary education. In fact, the gap in income widened during the review period, with the income growth of workers with tertiary education distancing that of workers with secondary education.
Income by Gender
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Mens status in the workplace is much more established than that of women, even with the growing number of women entering the workforce in the recent decades, and thus, the earning power of men is more established. Men on average earn twice what women earn, typically getting paid more for similar work. As well, in traditional Indonesian businesses, men tend to occupy the higher-level positions that typically pay higher salaries. The disparity in income between women and men widened during the review period, with men experiencing much stronger income growth. This has been attributed to the fact that women usually enter the workforce at low-paying entry-level positions, pulling down average earnings for the group.
Table 68 Mean Annual Disposable Income by Education and Gender: 1995/2000/2002/2004/20062007
As stated 1995 Disposable income by education Primary (Rp million) Secondary (Rp million) Tertiary (Rp million) Disposable income by gender Female (Rp million) Male (Rp million)
Source:
2000
2002
2004
2006
2007
1.74 2.59 5.07 1.27 1.73
4.80 7.25 14.24 3.61 5.31
6.35 9.09 18.79 4.15 7.61
7.53 10.40 22.50 4.86 9.13
10.15 13.88 29.44 6.76 12.21
11.94 16.65 34.59 7.87 14.79
National statistical offices, Euromonitor International
Table 69
Mean Annual Disposable Income by Education and Gender (% Growth): 1995-2007/20002007
% growth 1995-2007 Disposable income by education Primary Secondary Tertiary Disposable income by gender Female Male
Source: National statistical offices, Euromonitor International
2000-2007 148.67 129.53 142.90 117.77 178.66
584.95 542.34 582.11 521.22 753.96
CONSUMER EXPENDITURE
As Indonesia is a developing country with relatively low levels of purchasing power, the bulk of consumer expenditure during the review period focused on food and groceries. More than one-third of consumer expenditure in Indonesia was for food and non-alcoholic beverages, followed by expenditure on housing. Nonetheless, with higher disposable incomes, Indonesians began spending more on non-essential products during the review period, and the proportion of expenditure on food and non-alcoholic beverages declined. In contrast, expenditure on education, household goods and services, communications and leisure and recreational activities increased. Impact With a growing interest in spending money beyond the basic grocery items, there is a strong growth seen for higher-end products such as consumer electronics and domestic electrical appliances. Washing machined and refrigeration machines ownership in Indonesia has risen strongly over the historic period. More Indonesians also can afford to spend more money on education and leisure and recreation activities, thus increasing the quality of living further.
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Table 70 Rp trillion
Consumer Expenditure by Broad Category: 1995/2000/2005/2007/2010/2015
1995 Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL
Source: Note:
2000 967.5 104.7 86.4 157.1 57.6 28.4 31.6 13.4 24.7 50.6 53.8 22.4 1,598.2
2005 965.9 133.1 81.2 357.8 124.8 53.0 69.1 32.1 42.5 116.4 105.7 44.2 2,125.6
2007 1,133.2 146.4 103.5 403.4 149.5 61.2 81.1 37.7 48.9 142.0 124.8 50.8 2,481.4
2010 1,033.2 130.1 88.6 426.6 181.0 62.3 90.1 42.3 52.6 176.2 144.3 54.7 2,479.9
2015 1,022.9 128.1 78.6 509.6 254.8 69.6 103.1 49.5 64.6 255.7 188.3 61.4 2,782.8
749.9 63.1 103.1 89.2 40.6 16.5 18.6 6.4 18.9 33.4 36.6 15.4 1,191.7
National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices
Table 71
Consumer Expenditure by Broad Category (% Analysis and % Growth) 1995/2007/2015: /1995-2007/2007-2015
% of total consumer expenditure 1995 Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL
Source: Note:
2007 45.67 5.90 4.17 16.26 6.03 2.47 3.27 1.52 1.97 5.72 5.03 2.05 100.00
2015 36.76 4.60 2.82 18.31 9.16 2.50 3.70 1.78 2.32 9.19 6.77 2.21 100.00
1995-2007 51.11 132.07 0.45 352.52 268.29 271.26 335.27 485.24 158.01 324.65 240.83 230.59 108.22
2007-2015 -9.74 -12.54 -24.10 26.33 70.39 13.70 27.09 31.28 32.24 80.03 50.91 20.91 12.15
62.92 5.29 8.65 7.48 3.41 1.38 1.56 0.54 1.59 2.81 3.07 1.29 100.00
Consumer Expenditure by Commodity Type: 1995/2000/2005/2007/2010/2015
1995 Durable goods Semi-durable goods Non-durable goods Services TOTAL

Source:
2000 59.0 86.6 1,152.6 300.0 1,598.2
2005 120.7 90.8 1,272.3 641.7 2,125.6
2007 139.0 112.8 1,465.0 765.8 2,481.4
2010 151.5 102.2 1,323.8 904.3 2,479.9
2015 185.9 96.1 1,257.4 1,246.8 2,782.8
43.7 102.7 860.8 184.5 1,191.7
National statistical offices, OECD, Eurostat, Euromonitor International
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Note:
Constant value at 2007 prices
Table 73
Consumer Expenditure by Commodity Type (% Analysis and % Growth) 1995/2007/2015: /1995-2007/2007-2015
% of total consumer expenditure 1995 Durable goods Semi-durable goods Non-durable goods Services TOTAL
Source: Note:
2007 5.60 4.55 59.04 30.86 100.00
2015 6.68 3.45 45.18 44.80 100.00
1995-2007 218.39 9.81 70.19 314.99 108.22
2007-2015 33.71 -14.83 -14.17 62.81 12.15
3.66 8.62 72.23 15.48 100.00
Table 74 1995 = 100
Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007
1995 Index of consumer prices (1995 = 100) Average of CLIFE countries

Source:
2000 227.0 326.2
2002 283.2 475.7
2004 320.7 605.1
2006 400.7 706.0
2007 426.3 760.9
100.0 100.0
Table 75
Consumer Prices and Costs (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Index of consumer prices (1995 = 100) Average of CLIFE countries
Source:
2000-2007 199.32 434.67
326.34 660.88
EATING HABITS
Spending on Food
On a per capita basis, expenditure on food in Indonesia increased by more than 36% over the review period, going from US$370.10 per person in 1995 to US$507.57 in 2007, with overall, expenditure on food increasing by more than 52%. Increased disposable incomes allowed Indonesians to improve their diets and spend more on food. The Indonesian diet revolves heavily around rice, eaten with staples like vegetables and fish and seafood. . As a maritime country, there is abundant supply of fish in Indonesia, making it relatively affordable source of protein. Meat is less popular, but expenditure on meat increased significantly, by 67.6%, during the review period. In the same vein, while the typical Indonesian diet contains few dairy products, expenditure on milk, cheese and eggs increased by 100%. Impact With increasing disposable incomes, many Indonesian consumers are branching out and purchasing a wide variety of different types of food. For example, with greater exposure to Western culture, Indonesians are now
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drinking relatively significant amounts of milk and eating other dairy products. However, the highest growth in expenditure among food categories was for sugar and confectionery, again a reflection of Indonesians with higher disposable incomes finding they can indulge themselves. At the same time, increased awareness of the benefits of healthy eating spurred strong growth in expenditure for fruit during the review period.
Shopping for Food

Most Indonesians live in large family households, and those in urban areas usually employ maids. The preference for fresh foods is still very high, and most consumers still purchase fresh groceries daily basis at the wet markets. However, with the introduction of organized retail and the growing number of hypermarkets and convenience stores, an increasing number of consumers now do their shopping on weekly basis, buying more processed food and packaged products to eat in the days and weeks ahead. Impact Indonesian consumers, particularly those in urban areas, are gradually shifting away from buying fresh food daily and towards buying packaged food in hypermarkets and convenience stores. As the modern retail sector has thrived, smaller independent retailers are threatened. At the same time, the packaged food industry has grown strongly, as more consumers have less time to cook from scratch.
Eating Preferences
Indonesians usually eat meals a day, with most meals including rice. Breakfast can vary from fried rice, rice porridge, bread with jam or eggs. Food for lunch and dinner is often cooked in the late morning. As most Indonesians live with large families, there is usually a wide assortment of dishes to accompany the rice, ranging from fish to vegetables to tofu. Most meals cooked in Indonesia are able to last throughout the day at the room temperature, and they just require heating up for dinner. There are no fixed meal times for lunch or dinner in Indonesia, and meals are quite informal. Working people in urban areas usually buy their lunches from vendors at any of the numerous food stalls. Sales of rice remained the biggest amongst food categories in Indonesia during the review period. At the same time, there was also strong growth in sales of modern, rice cookers, as more Indonesian families switched from traditional ways of cooking rice, which are quite time-consuming and cumbersome. In terms of meat, which saw increased sales during the review period, poultry was the most popular, followed by beef. Pork sales in Indonesia are very limited due to the majority of the population being Muslim.
Cooking Habits
Indonesian cuisine is very diverse, even though most meals revolve around eating with rice. Most Indonesians still eat home-cooked food, dining out only during lunch while at work. Indonesians live in large households with many extended family members, so there is little difficulty in finding someone to prepare home-cooked meals. Indonesian cooking can be quite time-consuming and complicated, involving a large variety of spices. Typically, several dishes are cooked simultaneously for both lunch and dinner.
Table 76 Rp trillion 1995 #Bread and cereals #Meat #Fish and seafood #Milk, cheese and eggs #Oils and fats #Fruit #Vegetables #Sugar and confectionery #Other food TOTAL
Source:
Consumer Expenditure on Food: 1995/2000/2002/2004/2006-2007
2000 262.9 47.7 93.9 57.5 46.6 40.6 149.9 19.7 197.2 915.9
2002 229.4 53.2 95.1 60.3 41.4 52.2 135.9 22.4 209.8 899.6
2004 190.2 57.4 102.0 61.5 46.6 52.6 137.8 24.5 236.3 908.9
2006 250.3 40.7 103.9 65.2 43.4 46.2 146.2 26.4 256.5 978.8
2007 272.6 45.0 112.5 72.3 45.8 51.4 154.6 29.4 291.1 1,074.7
218.7 26.9 79.4 36.1 35.2 27.4 126.3 16.5 139.5 706.1
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Note:
Constant value at 2007 prices
Table 77
Consumer Expenditure on Food (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
% analysis/% growth 1995 #Bread and cereals #Meat #Fish and seafood #Milk, cheese and eggs #Oils and fats #Fruit #Vegetables #Sugar and confectionery #Other food TOTAL
Source: Note:
2000 28.7 5.2 10.3 6.3 5.1 4.4 16.4 2.2 21.5 100.0
2007 25.4 4.2 10.5 6.7 4.3 4.8 14.4 2.7 27.1 100.0
1995-2007 24.6 67.6 41.7 100.1 30.1 87.4 22.4 78.5 108.6 52.2
2000-2007 3.7 -5.6 19.8 25.8 -1.6 26.6 3.1 49.1 47.6 17.3
31.0 3.8 11.2 5.1 5.0 3.9 17.9 2.3 19.8 100.0
Table 78 US$ per capita
Per Capita Expenditure on Food: 1995/2000/2002/2004/2006-2007
1995 Food Average of CLIFE countries

Source:
2000 273.55 797.48
2002 295.13 832.76
2004 342.64 1,080.04
2006 438.82 1,231.37
2007 507.57 1,406.14
373.10 904.25
Table 79 % growth
Per Capita Expenditure on Food (% Growth): 1995-2007/2000-2007
1995-2007 Food Average of CLIFE countries

Source:
2000-2007 85.55 76.32
36.04 55.50
DRINKING AND SMOKING

Spending on Alcoholic Drinks
While expenditure on alcoholic drinks remains relatively low in Indonesia, it nevertheless grew by an impressive 240% during the review period. Alcohol consumption is minimal in Indonesia, as the majority of the population is Muslim. Non-Muslim Indonesians and tourists account for the bulk of spending on alcoholic drinks in the country. The most common alcoholic drink product remains beer, which has the lowest alcohol content and which is widely available in retail channels. Spirits and wine are sold only in specialist retail outlets. Local non-grape wine and spirits dominate the market due to their affordability. Impact
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There are relatively few companies present in the Indonesian alcoholic drinks industry. Imports of all alcoholic drinks are centralised, being handled by one government-based company which, in turn, sells the products through a limited number of distribution companies. On the other hand, there is a significant black market for alcoholic drinks, especially for spirits.
Spending on Soft Drinks and Hot Drinks

With the religious constraint on alcoholic drinks in the country, its not surprising that soft drinks are popular in Indonesia. Expenditure on soft drinks increased by more than 29% during the review period. The most popular drink is bottled water, as the water from the tap is not potable. Indonesian households must either boil water from the tap or purchase bottled water, a product that became increasingly affordable during the review period. At the same time, tea and coffee are also popular traditional beverages. Indonesia is a production country for tea and coffee, and the popularity of these drinks is firmly entrenched especially in rural areas where the more modern types of soft drinks, such as fruit juice or functional drinks, have yet to enter the local market. Expenditure on coffee, tea and cocoa increased by nearly 60% during the review period. Impact Its expected that expenditure on hot drinks and soft drinks will continue to increase over the forecast period. Its anticipated that there will be a switch from unpackaged to packaged products, especially in the case of hot drinks. Demand for bottled water will remain robust over the forecast period as more people switch from boiling water to purchasing bottled water.
Spending on Tobacco
Smoking is an entrenched among Indonesian males, with two-thirds of men being smokers. With the popularity of the local cigarettes kretek, spending on tobacco grew strongly during the review period. Expenditure increased by more than 132% during the review period, going from Rp 62.5 trillion in 1995 to Rp 144.5 trillion in 2007. Impact Despite some attempts to curb smoking, such as limiting advertising, there has been no strong effort by the Indonesian government to encourage quitting, as the tobacco industry generates high revenues and employs a large number of people. This situation is not expected to change significantly soon, thus sales of tobacco products are expected to continue to increase over the forecast period.
Table 80 Consumer Expenditure on Alcoholic Beverages and Tobacco: 1995/2000/2002/2004/2006-2007
Rp trillion 1995 Alcoholic drinks #Spirits #Wine #Beer Tobacco TOTAL

Source: Note:
2000 1.3 0.5 0.1 0.6 103.5 104.7
2002 1.5 0.6 0.1 0.7 125.1 126.5
2004 1.6 0.6 0.1 0.9 138.9 140.5
2006 1.8 0.7 0.1 0.9 131.4 133.2
2007 2.0 0.8 0.2 1.0 144.5 146.4
0.6 0.2 0.0 0.3 62.5 63.1
Table 81
Consumer Expenditure on Alcoholic Beverages and Tobacco (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 Alcoholic drinks 0.9 2000 1.2 2007 1.3 1995-2007 240.4 2000-2007 57.6
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#Spirits #Wine #Beer Tobacco TOTAL

Source: Note:
0.4 0.1 0.5 99.1 100.0
0.5 0.1 0.6 98.8 100.0
0.5 0.1 0.7 98.7 100.0
226.7 271.2 247.1 131.1 132.1
50.5 80.1 60.3 39.6 39.8
Table 82
Per Capita Expenditure on Alcoholic Beverages and Tobacco: 1995/2000/2002/2004/2006-2007
US$ per capita 1995 Alcoholic beverages and tobacco Average of CLIFE countries
Source:
2000 31.28 186.76
2002 41.51 202.08
2004 52.95 267.93
2006 59.71 296.90
2007 69.16 339.46
33.34 200.03
Table 83
Per Capita Expenditure on Alcoholic Beverages and Tobacco (% Growth): 19952007/2000-2007
% growth 1995-2007 Alcoholic beverages and tobacco Average of CLIFE countries

Source:
2000-2007 121.09 81.76
107.43 69.71
Consumer Expenditure on Non-alcoholic Beverages: 1995/2000/2002/2004/2006-2007
1995 #Coffee, tea and cocoa #Other soft drinks TOTAL

Source: Note:
2000 8.1 43.6 51.6
2002 8.0 41.9 49.8
2004 7.7 42.2 50.0
2006 8.4 46.7 55.0
2007 9.3 49.3 58.5
5.8 38.0 43.8
Table 85
Consumer Expenditure on Non-alcoholic Beverages (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 #Coffee, tea and cocoa #Other soft drinks TOTAL
Source: Note:
2000 15.6 84.4 100.0
2007 15.8 84.2 100.0
1995-2007 59.8 29.6 33.6
2000-2007 14.6 13.1 13.3
13.2 86.8 100.0
Per Capita Expenditure on Non-alcoholic Beverages: 1995/2000/2002/2004/2006-2007
1995
2000
2002
2004
2006
2007
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Non-alcoholic beverages Average of CLIFE countries

Source:
23.14 83.29
15.42 76.91
16.35 80.34
18.84 102.92
24.67 116.54
27.64 133.12
Table 87 % growth
Per Capita Expenditure on Non-alcoholic Beverages (% Growth): 1995-2007/2000-2007
1995-2007 Non-alcoholic beverages Average of CLIFE countries

Source:
2000-2007 79.16 73.08
19.44 59.83
Buying Alcohol and Tobacco

Tobacco products are widely available through a variety of retail outlets. Warung street kiosks sell cigarettes both in packs and individually, and cigarettes are also widely sold via independent small grocers, supermarkets and convenience stores. While there is a minimum age for smoking and purchasing tobacco, this is not strongly enforced in Indonesia. Purchasing alcoholic drinks is more difficult in Indonesia. Since 2006, grocery outlets such as supermarkets, independent small grocers, hypermarkets and convenience stores are allowed to sell only alcoholic drinks with low alcohol content, namely beer and RTDs. Sales of spirits and wine are restricted to specialist shops, making them less accessible.
Buying Soft Drinks and Hot Drinks

Soft drinks and hot drinks are widely available in retail and on-trade channels throughout the country. From the biggest hypermarkets to smallest street-side kiosks, consumers can buy soft drinks and hot drinks easily. Most people buy bottled water or RTD tea. The price range for soft drinks is quite wide, with bottled water being the most affordable. Niche products like energy drinks or elixirs are more expensive and purchased primarily by middle- and upper-income consumers.
Drinking Habits
Indonesians primarily drink water and tea and serve it to their guests when entertaining. The drinks most commonly available in dining establishments are water, tea and followed by coffee. As tap water is not potable, Indonesians at home either boil the tap water or purchase bottled water. The tea-drinking culture is also firmly established. The habit of drinking carbonates or fruit/vegetable juices is much less entrenched. Carbonates are usually consumed by members of the younger generations, and can be the occasional choice when serving guests.
Smoking Habits
Smoking is very widespread among Indonesian men. In contrast, smoking among Indonesian females is very low, although there has been a level of growth over the years, particularly among females living in urban areas. Indonesians primarily smoke high-tar cigarettes, often the traditional kretek cigarettes. In fact, acknowledging the strong preference of consumers for traditional kretek cigarettes, multinational companies have launched kretek-flavoured variants of international brands, including Marlboro. Smoking is considered to be natural part of Indonesian social activities, and most men smoke when they have meetings or any kind of gathering. Despite no-smoking signs, it is common for men to smoke even in airconditioned areas in restaurants. With an entrenched smoking culture, underage smoking is a significant health
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issue in Indonesia. Regardless, the tobacco industry continues to be highly lucrative in Indonesia, not only for the industry players but also for the government, which reaps large revenues from cigarette taxes.
FASHION
Spending on Clothing and Footwear
Expenditure on clothing in Indonesia declined by just over 2% during the review period, going from Rp 87.9 trillion in 1995 to Rp 86.1 trillion in 2007. Over the same period, expenditure on footwear increased by more than 15%, going from Rp 15.1 trillion in 1995 to Rp 17.5 trillion in 2007. On a per capita basis, expenditure on clothing and footwear in Malaysia increased by more than 89% between 2000 and 2007, reaching US$48.90 in 2007. Despite this growth, the amount is relatively insignificant compared to the US$524.43 spent on average by consumers in other CLIFE countries. Many Indonesians buy new clothing and footwear only once a year, during the festive Ramadan season as part of the preparation to welcome Idul Fitri festival. Most purchases of clothing and footwear are planned rather than made on impulse. There is little evidence of brand loyalty and there is, in any case, many counterfeit goods available selling at low prices. On the other hand, it is still quite common to buy fabric and hire a tailor to make bespoke clothing. Expenditure on clothing materials increased by 54% during the review period, reaching Rp 2.5 trillion in 2007. Weather plays a big role in defining trends in clothing. Most parts of Indonesia do not have seasons, other than dry versus rainy seasons. Therefore, there is little variety in clothing types. Most people wear light clothing and own only one or at most two sweaters or jackets. Impact Without the need by consumers to purchase clothing frequently, the Indonesian clothing and footwear market is expected to remain stable but not expected to see dynamic growth. While per capita expenditure almost doubled between 2000 and 2007, it is still less than one-tenth of average in other CLIFE countries.
Spending on Accessories and Personal Goods

Accessories and personal goods are considered by most Indonesian consumers to be luxury items, and expenditure on luxury products has traditionally been low in Indonesia. Regardless, in line with increasing disposable incomes, expenditure on these products increased by more than 943% during the review period, reaching nearly Rp 14 trillion in 2007. Many middle- and upper-income families consider purchasing gold jewellery as more of an investment. For middle- to low-income Indonesians, having gold jewellery can be useful when they are in urgent need of money, as these items are relatively easy to sell. Impact As disposable incomes continue to rise in Indonesia, its expected that expenditure on non-essential items like accessories and personal goods will continue to increase over the forecast period. Regardless, per capita expenditure on accessories and personal goods is still less than one-tenth of the average in other CLIFE countries.
Shopping for Clothing and Footwear

In urban areas, clothing and footwear are usually purchased at department stores. In Indonesia, different types of department stores cater to consumers with differing income levels. Aside from department stores, there are also quite a few independent clothing and footwear shops located in traditional markets or in shopping complexes. In rural areas, consumers typically purchase clothing and footwear at independent shops, often having to travel to the nearest town. Impact
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With consumers having relatively low brand loyalty in the Indonesian clothing and footwear sector, there has not been an onslaught of clothing and footwear retail chains in the country. There are quite a number of chains present, but they are usually located in bigger cities. Multinational chains tend to operate only a few outlets to cater to brand-conscious affluent Indonesians. It remains common to buy clothing and footwear at department stores, and theyre expected to maintain their distribution share over the forecast period.
Shopping for Accessories and Personal Goods

Primarily, consumers shop for accessories and personal goods in specialist shops. For example, consumers typically go to specific bookshops, jewellery and games shops to buy relevant products or sports shops to buy sports equipment. It is also quite common to purchase personal goods in department stores. Impact International retail chains have not aggressively expanded into the Indonesia market for personal goods products. Its expected that specialist shops will remain the dominant distribution channel over the forecast period, at least until international players recognize the potential for these products in the Indonesian market.
Traditional Clothing
There are 300 ethnicities present in Indonesia, and they are reflected in the various styles of traditional clothing worn across the archipelago. Some clothing items, such as the kebayas or Javanese traditional clothing, are more common than others. Kebayas are considered the national traditional clothing for women, and batik pattern is considered to be the national clothing for parties and formal occasions. The popularity of traditional clothing creates a continuing consumer demand for textiles, fibres and other clothing materials. Traditional clothes, especially the native clothing worn by tribes and ethnic groups in the country, has encouraged production of printed and multicolour clothing and has been used as the basis for new fashion trends.
Fashion Trends
Broadly, fashion in Indonesia can be considered conservative, due in part to the majority of the population being Muslim. Fashion trends are generally not recognized as very important by most consumers, other than by younger consumers more influenced by Western culture. Female consumers are more interested in fashion trends in Indonesia, and around the time of the festive Ramadan period fashionable Muslim clothing typically emerges. There is also strong interest among female consumers for fashionable office wear. Since there are so many counterfeit products in Indonesia, the prestige of most major brands has been diluted. Thus, designer labels and brands are not major concerns for most Indonesians buying clothing, footwear or other fashion items. Furthermore, as so many "top brands" are available even at low-end stores, the perception of brand exclusivity no longer applies. Impact With the relatively low interest in fashion trends in Indonesia, the fashion industry has not really thrived and this is expected to continue over the forecast period. There has always been some interest by female consumers in the latest fashions as presented in female magazines, but this is mostly confined to middle- and upper-income groups. As well, the interest often revolves strictly around office wear or Muslim wear rather than broader international fashion trends. On the other hand, interest in international fashion among teenagers is quite marked, and there has been good growth in expenditure on branded clothing items among affluent urban teenagers. This is expected to continue over the forecast period.
Table 88 Rp trillion 1995 Clothing 87.9 2000 70.1 2002 78.1 2004 85.0 2006 80.5 2007 86.1 Consumer Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007
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#Clothing materials #Garments #Other clothing #Clothing cleaning, repair and hire Footwear TOTAL
Source: Note:
1.6 74.2 4.2 7.9 15.1 103.1
1.9 53.8 5.3 9.1 16.2 86.4
2.1 60.2 5.7 10.0 17.2 95.3
2.4 65.3 6.2 11.1 18.0 103.0
2.3 61.9 5.7 10.6 16.8 97.3
2.5 65.8 6.2 11.5 17.5 103.5
Table 89
Consumer Expenditure on Clothing and Footwear (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 Clothing #Clothing materials #Garments #Other clothing #Clothing cleaning, repair and hire Footwear TOTAL
Source: Note:
2000 81.2 2.2 62.3 6.1 10.6 18.8 100.0
2007 83.1 2.4 63.6 6.0 11.1 16.9 100.0
1995-2007 -2.1 54.0 -11.3 46.0 46.3 15.5 0.4
2000-2007 22.7 30.3 22.3 16.6 26.6 7.6 19.8
85.3 1.6 72.0 4.1 7.7 14.7 100.0
Per Capita Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007
1995 Clothing and footwear Average of CLIFE countries

Source:
2000 25.80 321.05
2002 31.26 327.77
2004 38.82 415.72
2006 43.63 468.03
2007 48.90 524.43
54.46 368.14
Table 91 % growth
Per Capita Expenditure on Clothing and Footwear (% Growth): 1995-2007/2000-2007
1995-2007 Clothing and footwear Average of CLIFE countries

Source:
2000-2007 89.51 63.35
-10.22 42.45
Table 92
Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods: 1995/2000/2002/2004/2006-2007
Rp trillion 1995 TOTAL

Source: Note:
2000 2.2
2002 3.2
2004 3.9
2006 4.6
2007 13.8
1.3
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Table 93
Consumer Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods (% Analysis and % Growth): 1995-2007/2000-2007
% analysis/% growth 1995-2007 TOTAL

Source: Note:
2000-2007 515.2
943.2
Table 94
Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods: 1995/2000/2002/2004/2006-2007
US$ per capita 1995 Jewellery/silverware/ watches/clocks/travel goods Average of CLIFE countries
Source:
2000 0.67 51.78
2002 1.06 52.88
2004 1.48 65.96
2006 2.08 74.92
2007 6.51 84.58
0.70 52.55
Table 95
Per Capita Expenditure on Jewellery, Silverware, Watches and Clocks, Travel Goods (% Growth): 1995-2007/2000-2007
% growth 1995-2007 Jewellery/silverware/watches/clocks/travel goods Average of CLIFE countries

Source:
2000-2007 872.77 63.34
832.48 60.97
HOUSING AND ASSOCIATED COSTS

Spending on Housing
Per capita expenditure on housing increased significantly in Indonesia during the review period, going from US$47.11 in 1995 to US$190.54 in 2007. Regardless, this is dwarfed by the US$2,041.66 spent on average by consumers in other CLIFE countries. Overall, consumer expenditure on housing increased by more than 352% during the review period, going from Rp 89.2 trillion in 1995 to Rp 403.4 trillion in 2007. In 2007, expenditure on electricity, gas and other fuels accounted for the largest proportion of spending on housing, 44%, a rate only slightly down from 47.5% in 1995. Electricity is expensive in Indonesia and is made available through the government. In addition, due to frequent cooking in most Indonesian homes, the use of gas, liquid fuels and solid fuels is also prevalent. Impact Overall expenditure on housing is expected to continue to increase over the forecast period. Expenditure on electricity remains a concern for most families, and the higher usage rates of more modern domestic electrical appliances, such as microwaves, high-tech irons and cooking appliances, will continue to threaten sales growth.
Renting Versus Buying

The property rental market is small in Indonesia. Most Indonesians tend to own their homes and live in the same place for many years, not having the need to keep moving from one house to another. Most Indonesians
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consider renting a foreign concept, largely because it is still common for people to live with large extended families. Renting is common for university students who leave home and attend schools in other cities. Often, they rent rooms in bigger houses which have rooms designed for student accommodation. Renting is also an option for workers who leave home to pursue careers and professional opportunities. On the other hand, inputs from rentals increased significantly during the review period, going from Rp 11.7 trillion in 1995 to Rp 56.3 trillion in 2007. Impact The high rate of home ownership in Indonesia will help drive demand for a wide range of household goods and services over the forecast period, including furniture and home appliances. More affluent consumers will drive demand for more expensive items like in-home consumer electronics products.
Utility Costs
The utilities system in Indonesia is rather complex, with some utilities supplied by government monopolies while others supplied by private companies. Different local governments have different rules regarding which utilities are allowed to be in private hands and which are to be managed by local governments. Electricity is provided nationally by the Indonesian government through it company PLN. PLN supplies most of Indonesia and most energy utility prices are fixed by the government. Electricity prices in Indonesia are considered to be high, especially for the level of service provided. Power outages are still quite a common occurrence in the country. Expenditure on electricity increased by 330% during the review period, going from Rp 25 trillion in 1995 to more than Rp 107 trillion in 2007. Natural gas, liquid fuels, solid fuels and heating energy not related to electricity are made available via private concerns. Gas tanks for both methane and butane, as well as liquid fuels and solid fuels, are distributed on doorto-door routes throughout most of the low-income areas. Water and sewage is overseen by the government company PAM. The water quality in many areas in Indonesia supplied by PAM remains poor, and it is still a common practice to use water pumps to pump ground water or a well rather than using water supplied by PAM. Utility prices are always a key concern for Indonesian consumers. Whenever the government decides to increase the prices, there is always an uproar, especially because the population do not believe the quality or level of service will improve amid the price increases. Impact Its expected that expenditure on utilities will continue to grow over the forecast period, further squeezing household budgets and having a negative impact on expenditure in other consumer product categories. Consumer confidence in government-operated utility companies is expected to continue to remain low as price hikes are inevitable and typically not coupled with improved service.
Maintenance and Repair

Indonesia is a developing country where labour costs are still very affordable, and maintenance and repair is affordable to most homeowners, although costs are rising along with increasing disposable incomes. There is also no shortage of plumbers, carpenters or other skilled maintenance and repair workers, and most homeowners do not hesitate to call on them when work is needed. Expenditure on house maintenance and repair increased by more than 373% during the review period, going from Rp 7.4 trillion in 1995 to Rp 35 trillion in 2007. Impact Its expected that expenditure on maintenance and repair products and services will continue to increase over the forecast period, particularly if costs remain relatively low. The high rate of home ownership in Indonesia is expected to support growth in the sector, as homeowners (rather than renters) typically drive demand.
Table 96 Rp trillion 1995 2000 2002 2004 2006 2007 Consumer Expenditure on Housing: 1995/2000/2002/2004/2006-2007
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Actual rentals for housing Imputed rentals for housing Maintenance and repair Water and sewerage Electricity, gas and other fuels #Electricity #Gas #Liquid fuels #Solid fuels TOTAL
Source: Note:
11.7 17.4 7.4 10.4 42.3 25.0 6.8 8.1 2.4 89.2
20.8 32.1 13.6 17.5 73.0 43.7 11.9 14.7 2.6 157.1
32.3 49.9 21.3 26.9 114.1 70.0 18.1 21.6 4.3 244.4
40.5 63.3 27.1 34.4 142.2 85.2 23.3 28.7 5.0 307.4
49.0 78.7 30.3 37.5 158.5 94.9 26.1 31.8 5.7 354.0
56.3 90.8 35.0 42.4 179.0 107.4 28.7 36.7 6.2 403.4
Table 97
Consumer Expenditure on Housing (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
% analysis/% growth 1995 Actual rentals for housing Imputed rentals for housing Maintenance and repair Water and sewerage Electricity, gas and other fuels #Electricity #Gas #Liquid fuels #Solid fuels TOTAL
Source: Note:
2000 13.2 20.5 8.7 11.2 46.5 27.8 7.6 9.4 1.7 100.0
2007 14.0 22.5 8.7 10.5 44.4 26.6 7.1 9.1 1.5 100.0
1995-2007 382.5 421.1 373.6 308.9 323.0 330.0 323.6 352.2 152.9 352.5
2000-2007 171.0 182.6 157.5 141.5 145.1 145.6 140.5 149.0 135.3 156.8
13.1 19.5 8.3 11.6 47.5 28.0 7.6 9.1 2.7 100.0
Per Capita Expenditure on Housing: 1995/2000/2002/2004/2006-2007
1995 Housing Average of CLIFE countries

Source:
2000 46.91 1,099.49
2002 80.18 1,183.16
2004 115.87 1,565.71
2006 158.71 1,787.36
2007 190.54 2,041.66
47.11 1,128.84
Table 99 % growth
Per Capita Expenditure on Housing (% Growth): 1995-2007/2000-2007
1995-2007 Housing Average of CLIFE countries

Source:
2000-2007 306.15 85.69
304.48 80.86
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HOUSEHOLD GOODS AND SERVICES

Spending on Household Goods and Services
Spending on household goods and services in Indonesia increased significantly during the review period, going from Rp 40.6 trillion in 1995 to Rp 149.5 trillion in 2007, with the bulk spent on household appliances (43% of overall spending) and household and domestic services (40% of overall spending). Spending on appliances increased by nearly 216% over the review period, while spending on household and domestic services increased by more than 370%. In both cases, expenditure growth reflected rising disposable incomes. Spending on household and domestic services is uniquely high in Indonesia due to many households having live-in maids. Most Indonesians live in large extended families and, especially in urban areas, having a maid is considered a common practice. Impact Increasing disposable incomes and the high rate of home ownership in Indonesia are expected to help drive increased expenditure in nearly all categories of household goods ands services over the forecast period.
Shopping for Household Goods

When shopping for household goods, Indonesia consumers usually go to specialist shops that focus on specific types of products. For example, when looking to buy household appliances, Indonesians typically go to traditional shopping centres where electrical and electronics shops are located. Furniture is most often purchased from independent furniture shops, of which there are many across the country, and hardware shops are usually the go-to place to purchase hardware and DIY goods. Impact Specialist retail shops are expected to remain the dominant distribution channel for household goods in Indonesia over the forecast period. A few chains have emerged, and these are usually located in shopping centres. Furniture chains have not emerged as much, and the furniture sector remains highly fragmented.
DIY and Gardening

The concept of do-it-yourself (DIY) has not yet been embraced by Indonesian consumers for a number of reasons. Repair services in the country, for example, are still very affordable. Rather than take the time to acquire the knowledge required for DIY, most Indonesian homeowners simply hire a carpenter, an electrician or some other type of specialist to undertake the work. On the other hand, expenditure on hardware and DIY products did increase, albeit at a slow rate, during the review period, reaching Rp 5 trillion in 2007. In contrast, gardening is a common pastime among Indonesians, especially Indonesian women. Most Indonesian homes have yards, even if just small ones. In urban areas, where space is tighter, gardening in pots is common. Some households also use potted plants to hide the sewage systems that often run parallel to their front gates. Other pots are left hanging outside to provide shade for the house. Growing herbs in the garden is also popular among Indonesians, especially among those knowledgeable of the deep-rooted traditions of Indonesian herbal medicines. Impact Its not expected that expenditure by Indonesian consumers on DIY products will grow significantly over the forecast period, and this is reflected by the dearth of DIY shops in the country. Expenditure on gardening products, on the other hand, is expected to remain steady, although there are few specialist garden centres. Indonesian gardeners typically use traditional tools for gardening. More common are shops that sell plants rather than Western-style gardening centres.
Table 100 Consumer Expenditure on Household Goods and Services: 1995/2000/2002/2004/20062007
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Rp trillion 1995 Furniture, furnishings, floor coverings Household textiles Household appliances Glassware, tableware and household utensils Hardware and DIY goods Household and domestic services TOTAL
Source: Note:
2000 3.5 1.7 26.0 2.1 2.0 22.4 57.6
2002 5.3 2.1 39.7 2.9 2.8 35.5 88.3
2004 7.7 2.3 47.5 3.9 3.7 42.8 108.0
2006 8.7 2.8 54.7 4.4 4.2 49.3 124.1
2007 11.0 3.1 64.2 5.4 5.0 60.9 149.5
2.3 1.9 20.3 1.5 1.6 13.0 40.6
Table 101
Consumer Expenditure on Household Goods and Services (%Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 Furniture, furnishings, floor coverings Household textiles Household appliances Glassware, tableware and household utensils Hardware and DIY goods Household and domestic services TOTAL
Source: Note:
2000 6.0 2.9 45.0 3.7 3.4 38.9 100.0
2007 7.3 2.0 42.9 3.6 3.3 40.8 100.0
1995-2007 372.4 64.8 215.8 254.3 207.1 370.3 268.3
2000-2007 217.3 82.1 147.2 153.3 152.7 171.8 159.5
5.7 4.6 50.0 3.8 4.0 31.9 100.0
Table 102
Per Capita Expenditure on Household Goods and Services: 1995/2000/2002/2004/20062007
US$ per capita 1995 Household goods and services Average of CLIFE countries
Source:
2000 17.21 343.23
2002 28.97 354.16
2004 40.72 463.80
2006 55.63 528.62
2007 70.63 600.93
21.46 364.78
Table 103
Per Capita Expenditure on Household Goods and Services (% Growth): 1995-2007/20002007
% growth 1995-2007 Household goods and services Average of CLIFE countries

Source:
2000-2007 310.30 75.08
229.19 64.74
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HEALTH
Spending on Health Goods and Medical Services
With no strong healthcare subsidies from the government, Indonesians had high levels of expenditure for such items as pharmaceuticals and medical appliances/equipment during the review period. Expenditure on hospital and outpatient services was lower, not due to healthy living but due rather to the fact that most Indonesian families finding hospital and outpatient fees to be unaffordable. Hospitals are used only for emergency situations. In most cases, Indonesians prefer to only visit their doctor and undergo treatment at home. It is also common for low-income Indonesians, especially in the rural areas, to consult traditional doctors who usually prescribe traditional remedies. However, thanks to improved standards of living the situation is changing, and hospital visits are becoming more common, reflected by strong growth in expenditure hospital services between 2000 and 2007. Impact The Indonesian population is ageing, with the median age expected to rise to 30.11 years in 2015, up from 23.13 years in 1995, and the increased number of older consumers is expected to spur demand for a wide range of health goods and medical services. With the current public health infrastructure in Indonesia, many Indonesians find they need to purchase medical services themselves, putting a further squeeze on household budgets. This is not expected to change significantly over the forecast period. Meanwhile, sales of traditional and herbal remedies have thrived.
Healthcare System
The government healthcare system in Indonesia has been improving, but the standard is still far from ideal. There are many private institutions offering healthcare, but the high prices have proven to be an obstacle for most of the population. While state hospitals and healthcare services are generally lower quality, in terms of the facilities they offer and their cleanliness, there is one particular state hospital, RSCM, that has very advanced and expensive equipment, generally available at other hospitals, including private hospitals. RSCM serves as the main research centre for many senior doctors and researchers, but cleanliness and the quality of the building are the same as for any other state hospital. The coverage of urban areas by doctors and nurses is improving, but in rural areas or remote urban districts the equipment available is usually very limited and of poor quality, and patients with serious illnesses are often sent to the nearest large city for examinations. Hospitals in remote urban districts and in rural areas are simply unable to buy the expensive equipment that is required to diagnose or treat serious illnesses because they would then have to increase their fees. City hospitals are in a more advantageous position, because many of their patients can afford to pay for such facilities, so they can reduce their fees based on higher levels of demand. Consequently, people with serious illnesses come from rural areas into cities for diagnosis or treatment to take advantage of lower fees, not just because of the greater availability of equipment. In Indonesia, healthcare services are also provided by the so-called puskesmas, or public health centres, which provide basic services and generic medicines at relatively low prices. Some of these are subsidised by the government, but most puskesmas are only able to treat common illnesses like flu, mild diarrhoea and fevers. With the lack of an adequate public health system and high prices for private health care services, many Indonesians with ailments turn to self-medication or traditional doctors. The OTC healthcare industry grew significantly during the review period due to peoples desire to self-medicate. Sales of herbal and traditional remedies were popular, as many believe these products have fewer side effects. They are also embedded quite deeply in Indonesian culture.
Major Causes of Death

Circulatory diseases are the primary cause of death in Indonesia, followed by tumours or cancer. Other common causes of death in Indonesia include diabetes, digestive and respiratory diseases. Meanwhile, obesity rates in Indonesia are low, as malnutrition is a bigger concern. On the other hand, the rate of obesity has grown together with improved standards of living, and this has contributed to an increase in a number of obesity-related
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diseases. Despite respiratory diseases and lung cancer being strongly linked to smoking, there has been little dent on tobacco sales.
Prevalence of Smoking
There is a high prevalence for smoking in Indonesia, with nearly 31% of the population aged 15 years and over in 2007 being smokers. Around one-third of Indonesian males aged 15 and above smoke while less than 10% of females in Indonesia smoke. Smoking is frowned upon for females, and it is seen more often in females in urban areas. There have been encouraging signs in increasing health awareness that have resulted in some declines in smoking prevalence. The tobacco industry continued to thrive in Indonesia during the review period. In fact, it is considered to be one of the countrys most lucrative industries. The top tobacco companies are considered to be the top Indonesian companies.
Reported Aids Cases

AIDS is considered a taboo subject in Indonesia, as it is strongly associated with homosexual relationships. With premarital intercourse already considered unacceptable in Indonesian culture, homosexuality is that much more unacceptable. Despite governmental efforts to educate consumers about the dangers of AIDS and to provide people with information on the myriad ways it can be transmitted, Indonesians still find it hard to accept AIDS as a normal disease. Therefore, AIDS awareness and methods to prevent contracting the disease have remained limited. The social stigma has resulted in a relatively low number of AIDS cases being reported during the review period. The real number of cases in the country is believed to be much higher than officially reported.
Drug Abuse
Like drinking alcohol, the use of drugs is forbidden by Muslim tenets, and this influences the view of most Indonesians. Nonetheless, drug abuse cases are not uncommon. Drug abuse is more common among the male population, and the danger of being introduced to drugs is usually the highest in high schools, ripe target for drug dealers. Most teenagers who take up the habit of consuming drugs in high school find it hard to escape the cycle. Given the Indonesian societys harsh view of drug abuse, most families with family members who have been involved with drugs usually send the family members to rehabilitation centres in confidence. It is also more difficult for drug abuse victims to seek help, due to the subject being taboo in Indonesia. Drug abuse in Indonesia is not linked to certain income levels. Teenagers from affluent families are as prone to use drugs as those from low-income families. Peer pressure is a big factor leading to teenagers experimenting with drugs. As with AIDS, the impact of drug abuse has been significant but it is openly acknowledged in Indonesia.
Health and Wellness

The concept of health and wellness is relatively new in Indonesia, as a good portion of the population still seeks to improve their standard of living and avoid malnutrition. However, with increased media coverage on health issues more consumers, especially middle- and upper-income consumers in urban areas, have become increasingly health conscious. Impact The growing awareness of health and wellness issues is expected to drive demand for products that offer enhanced health benefits over the forecast period. For example, packaged food products which offer fortification or less sugar or less fat are expected to see increased sales. Value sales of preventive medicines, including vitamins and dietary supplements, are expected to see strong double-digit growth.
Table 104 Consumer Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007
Rp trillion 1995 2000 2002 2004 2006 2007
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Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services TOTAL

Source: Note:
9.9 4.8 1.8 16.5
16.7 8.8 3.0 28.4
21.5 11.7 4.0 37.2
26.3 14.1 5.0 45.4
30.3 16.7 5.8 52.8
35.0 19.5 6.8 61.2
Table 105
Consumer Expenditure on Health Goods and Medical Services (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services TOTAL
Source: Note:
2000 58.6 30.9 10.5 100.0
2007 57.1 31.9 11.0 100.0
1995-2007 253.9 305.0 276.6 271.3
2000-2007 109.7 121.5 127.1 115.2
59.9 29.2 10.9 100.0
Table 106
Per Capita Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007
US$ per capita 1995 Health goods and medical services Average of CLIFE countries
Source:
2000 8.50 259.03
2002 12.20 292.93
2004 17.11 386.55
2006 23.69 448.09
2007 28.91 507.80
8.71 249.65
Table 107
Per Capita Expenditure on Health Goods and Medical Services (% Growth): 19952007/2000-2007
% growth 1995-2007 Health goods and medical services Average of CLIFE countries
Source:
2000-2007 240.26 96.04
231.84 103.40
Table 108 % of total GDP
Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006
1995 Share of total health expenditure in GDP (% of total GDP) Average of CLIFE countries
Source:
2000 1.7 6.3
2002 1.8 6.6
2004 2.1 6.7
2006 2.2 6.7
1.9 6.0
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Table 109 years
Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006
1995 Healthy life expectancy at birth Average of CLIFE countries

Source:
2000 64.0
2002 58.1 62.5
2004 59.5 63.4
2006 60.8 64.3
63.5
Table 110 number
Healthcare Workers: 1995/2000/2002/2004/2006-2007
1995 Doctors Midwives Nurses

Source:
2000 21,467 198,847 181,283
2002 26,949 228,884 188,433
2004 31,538 264,470 210,784
2006 33,514 306,678 219,098
2007 33,270 330,674 223,890
30,402 138,974 147,090
Table 111 % change
Healthcare Workers (% Growth): 1995-2007/2000-2007
1995-2007 Doctors Midwives Nurses

Source: National Statistical Office, OECD, Euromonitor International
2000-2007 54.98 66.30 23.50
9.43 137.94 52.21
Table 112
Obese Population: 1995/2000/2002/2004/2006-2007
% of population aged 15+ 1995 Obese population (BMI 30kg/sq m or more) Average of CLIFE countries
Source: Note:
2000 1.6 13.1
2002 2.0 13.6
2004 2.3 14.4
2006 2.5 15.2
2007 2.7 15.5
1.1 11.5
OECD, International obesity taskforce, Euromonitor International Data are for population aged over 15 years
Table 113
Obese Population (Actual Growth): 1995-2007/2000-2007
Percentage points 1995-2007 Obese population (BMI 30kg/sq m or more) (% of population aged 15+) Average of CLIFE countries
Source: Note: OECD, International obesity taskforce, Euromonitor International Data are for population aged over 15 years
2000-2007 1.05 2.42
1.59 4.05
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Table 114
Smoking Prevalence: 2000/2002/2004/2006-2007
% of total adult population 2000 Smoking prevalence in population aged 15+ (% of total adult population) Average of CLIFE countries
Source: Euromonitor International
2002 30.8
2004 30.6
2006 30.7
2007 30.7
32.1
26.5
26.3
26.1
25.8
25.6
Table 115
Smoking Prevalence (Actual Growth): 2000-2007
Percentage points 2000-2007 Smoking prevalence in population aged 15+ (% of total adult population) Average of CLIFE countries
Source: Euromonitor International
-1.43 -0.90
Table 116 number
Reported AIDS Cases: 1995/2000/2002/2004/2006-2007
1995 AIDS incidence

Source: UNAIDS, WHO
2000 166
2002 232
2004 321
2006 436
2007 534
20
Table 117 % change
Reported AIDS Cases (% Growth): 1995-2007/2000-2007
1995-2007 AIDS incidence

Source: UNAIDS, WHO
2000-2007 221.69
2,570.00
PERSONAL GROOMING
Spending on Cosmetics and Toiletries
Basic toiletries were already widely used in a country where the majority of the population bathes twice a day. But as disposable incomes grew during the review period, more Indonesians were able to afford to purchase not only basic toiletries but also cosmetics and other non-essential personal grooming products. Overall expenditure on personal care products increased by 195% during the review period, reaching Rp 10.4 trillion in 2007. On a per capita basis, Indonesian consumers spent US$4.89 on personal care products in 2007, up from US$1.53 in 2000 but still far from the US$229.59 spent on average by consumers in other CLIFE countries. Impact
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The cosmetics and toiletries sector benefited from the increased interest by Indonesian consumers in personal grooming, and demand is expected to continue to increase over the forecast period. Indonesians are purchasing more of these products and also purchasing them more frequently as their income level rises, and there is still a lot of potential for sales growth.
Shopping for Cosmetics and Toiletries

Indonesians usually purchase cosmetics and toiletries on planned shopping trips, and seldom buy them on impulse. More affluent families tend to buy in bigger quantities, while low-income consumers tend to buy smaller sizes with lower prices, purchasing them more frequently. Traditionally, most Indonesians purchased cosmetics and toiletries from small independent grocery stores, but there has been a shift towards more modern retail outlets and by 2007 most purchases of cosmetics and toiletries were via supermarkets or hypermarkets, due to the wider range of products on offer. Brand loyalty in the sector is still rather low, and most consumers do not hesitate to shop at outlets which offer more brands. On the other hand, department stores are an important distribution channel for higher priced cosmetics, and affluent consumers usually have higher levels of brand loyalty. Impact The increased number of modern retail outlets like supermarkets and hypermarkets and, to a smaller extent convenience stores, has fuelled sales growth of the cosmetics and toiletries sector. Offering a wider range of products at various prices enhances competition in the sector, which is a benefit to consumers. In addition, demand for private label products increased, particularly towards the end of the review period. At the same time, premium products did not fare badly. Overall, its expected that the expansion of organized retail outlets will continue to facilitate increased volume sales of cosmetics and toiletries over the forecast period.
Attitudes To Personal Grooming

Living in a tropical climate, most Indonesians typically shower twice a day, in the morning and in the late afternoon. It is also typical to brush teeth twice to three times a day. Hair washing is not necessarily done on daily basis. The traditional practice was to wash hair weekly or twice-weekly basis. However, it is becoming more common to wash hair more frequently. Shaving is also a common practice among Indonesian males, although it is also quite common to keep a beard or moustache as opposed to always having clean-shaven look. For females, using make-up is a standard practice, and using skin care products be they modern or traditional products is also popular. For religious reasons, shaving, hair colouring and nail polishing among Indonesian women is limited. Impact The habit of frequent showering among Indonesians drove increased demand for bath and shower products during the review period, and this is expected to continue over the forecast period. The bulk of sales in the subsector still come from sales of bar soap, due to its affordability. However, there was strong sales growth for the more convenient, albeit more expensive, shower gel products during the review period, and this too is expected to continue over the forecast period. Meanwhile, secondary products like skin care products also had robust sales. Because of religious restrictions, nail polish and hair colourants both perform weakly during the review period, and this is not expected to change over the forecast period.
Table 118 Rp trillion 1995 TOTAL
Source: Note:
Consumer Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007
2000 5.1
2002 7.6
2004 9.3
2006 10.4
2007 10.4
3.5
Table 119
Consumer Expenditure on Personal Care (% Analysis and % Growth): 1995-2007/20002007
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Source: Note:
2000-2007 102.5
195.0
Per Capita Expenditure on Personal Care: 1995/2000/2002/2004/2006-2007
1995 Personal care Average of CLIFE countries

Source:
2000 1.53 119.60
2002 2.49 129.87
2004 3.49 175.38
2006 4.65 199.52
2007 4.89 229.59
1.85 120.79
Table 121 % growth
Per Capita Expenditure on Personal Care (% Growth): 1995-2007/2000-2007
1995-2007 Personal care Average of CLIFE countries

Source:
2000-2007 220.28 91.97
163.70 90.08
EDUCATION
Spending on Education
Consumer expenditure on education nearly tripled between 2000 and 2007, reaching Rp 142 trillion in 2007. A portion of this spending was for the purchase of uniforms and school text books. Uniforms are worn by students from primary school to senior high school, and it is common to purchase new uniforms at the beginning of academic year. With no subsidies for text books, spending on these products also accounts for a substantial part of spending on education. In fact, the text book publishing industry in Indonesia is quite lucrative, and major bookstore chains like Gramedia and Toko Gunung Agung always have large sections allocated to school text books in all outlets. On a per capita basis, Indonesian consumers spent US$67.08 on education, up from US$15.11 in 2000. While this reflected significant growth, the level of expenditure did still not come near the US$193.67 spent on average by consumers in other CLIFE countries. Impact Consumer expenditure on education is expected to continue to increase over the forecast period. Its also expected that expenditure on computers and computer-related equipment, now both key education tools, will increase over the forecast period, as well.
Pre-primary Education
Pre-primary education is not compulsory in Indonesia. It is common practice among middle-income and upperincome households to send their children to playgroups and/or to kindergartens. These families, many with two working parents, are more likely to send their children to kindergarten. Kindergartens are more common in urban areas than rural areas.
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There was a fundamental problem faced by kindergartens during the review period: lack of pupils. The declining birth rate resulted in several kindergartens closing down, especially in the cities like Jakarta where the fall in the birth rate is more apparent. There has, therefore, been better access for those wanting to attend kindergartens but at the same time not enough demand to meet the supply.
Primary and Secondary Education

Primary education and a portion of secondary education are compulsory in Indonesia. Education is compulsory for nine years, covering six years of primary school and three years of junior high school. Senior high school education is not compulsory. Making junior high school education compulsory was implemented more recently than that for primary school education, therefore even as late as 2007 the enrolment rate was still notably lower for junior high schools compared to primary schools. In general, there can be more than 10 primary schools serving as the base for a junior high school. In turn, more than five junior high schools usually serve as the base for a senior high school. The number of classrooms at each educational level in primary school tends to be fewer compared to junior high school and senior high school. It is typical for a primary school to have two to three classrooms for each level, while at junior and senior high school levels there can be more than 10 classrooms. It is common practice to have morning and afternoon shifts in the same school in order to cater to all the pupils in the school. Like kindergartens, primary schools in Indonesia are facing issues related to falling birth rates. Currently, the threat is less visible for primary schools, but nevertheless there has not been a surge in enrolment. In contrast, there has been strong growth in secondary education enrolment. More parents can afford to send their children to junior high schools, and there are higher rates of intake as a result. Funding students in senior high school is still quite a challenge for many Indonesian parents as school fees can be high, even for public schools. Despite this, the enrolment rate has been improving.
Higher Education
In 2007, 12.8 million Indonesians had completed higher education, and increase of nearly 62% since 1995. Access to reputable public universities like the University of Indonesia or leading technological universities like Institut Teknologi Bandung is difficult. However, as the job environment has become increasingly competitive it becomes essential to have a higher education degree to be able to land a top job. This has given rise to the establishment of a number of private tertiary institutes that offer a broad range of tertiary degrees, from one-year diplomas to three-year diplomas. It has also led to the establishment of institutes specialising in specific fields, such as economics and technical and IT institutes, such as Gunadharma. In large part, students attending higher education institutions are attracted by the inherent increase in opportunities for better jobs and higher salaries.
Adult Education
In Indonesia, the emphasis in on educating the young, and adult education services are rare. Adult education occurs most frequently in the workplace. However, only the bigger companies allocate funding in their budgets for training courses for their employees. With the lack of established culture for adult education, many older workers acquire new skills on the job and often face difficulties staying competitive with younger, more highly trained workers. On the other hand, there are a number of courses available to members of all age groups, the most common being English-language courses and computer courses. However, more young people typically sign up for these courses than adults.
Source: Note:
Consumer Expenditure on Education: 1995/2000/2002/2004/2006-2007
2000 50.6
2002 81.7
2004 100.0
2006 115.9
2007 142.0
33.4
Table 123
Consumer Expenditure on Education (% Growth): 1995-2007/2000-2007
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% growth 1995-2007 TOTAL

Source: Note:
2000-2007 180.6
324.6
Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007
1995 Education Average of CLIFE countries

Source:
2000 15.11 101.11
2002 26.81 108.21
2004 37.69 140.91
2006 51.97 167.56
2007 67.08 193.67
17.67 90.32
Table 125 % growth
Per Capita Expenditure on Education (% Growth): 1995-2007/2000-2007
1995-2007 Education Average of CLIFE countries

Source:
2000-2007 343.78 91.55
279.57 114.44
TRANSPORT
Spending on Transport
Indonesia is big country, and the need for effective transport is crucial. However, the public transport infrastructure is far from ideal, and it is necessary for many families to own their own vehicles. Middle-income and upper-income families often own at least one car, and the ownership rate of motorcycles is even more widespread. Expenditure on cars, motorcycles and other vehicles increased by 250% during the review period, going from Rp 2 trillion in 1995 to Rp 7 trillion in 2007. Spending on the operation of personal transport equipment increased by nearly 300% during the forecast period, reaching Rp 16.5 trillion in 2007. Most of the expenditure was for fuel, as well as maintenance costs. As for public transport, although there have been several proposals there is still no subway system in Indonesia, not even in the capital Jakarta. Nearly 42% of expenditure on transport services in Indonesia is on buses, coaches and taxis. The most common mode of public transport in urban areas is via the bus system, including various forms of mini-buses. In smaller towns, the most common buses are SUV cars operated by private companies. In line with increasing urbanisation, expenditure on buses, coaches and taxis increased by more than 482% over the review period, reaching nearly Rp 34 trillion in 2007. Air travel remains expensive for most Indonesian consumers, and it is used primarily as a way to get to other islands. Rail travel is the most common way to travel within the same island, such as in Java or Sumatra. Growth in expenditure for these two types of transport was slower during the review period compared to other modes of transport. Impact Almost one-third of overall spending on transport in Indonesia is devoted to personal transport, and this is not expected to change significantly over the forecast period. This bodes well for the automotive sector, which is a lucrative industry in Indonesia, as well as supporting sectors. In urban areas, for example, there are a large
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number of specialist shops selling vehicle accessories, as well as a substantial number of vehicle repair services, and shops like these are expected to see a good portion of the increased expenditure over the forecast period.
Air Transport
Air travel accounted for smallest proportion of overall expenditure on transport during the review period with spending reported at Rp 4.4 trillion in 2007. Regardless, this reflected significant growth of more than 196% during the period. There is great potential for air travel due to the massive size of the country and its archipelago nature, making air travel the most convenient form of transport when needing to go to other islands. However, it remains the most expensive option and this is why expenditure remains relatively low. The deregulation of the airline industry in Indonesia encouraged growth in the sector, particularly the establishment of new budget airlines throughout the country. Batavia Air and Sriwijaya Air are among the new airlines offering very competitive airfares. Impact With the growth of budget airlines, air travel is becoming more accessible to the general Indonesian population. The presence of these new low-priced players will continue to drive growth in the domestic travel sector. The growth in air travel will boost the travel and tourism industry in Indonesia. Despite having numerous tourist attractions and scenic locations sprawled across the archipelago, accessibility has always been an obstacle in travel and tourism industry growth. With an improvement in the air travel network, the tourism industry expects increased sales, especially from foreign tourists over the forecast period.
Road Transport
Due to the countrys relatively poor public transport, consumer expenditure on personal transport, including cars, motorcycles and other vehicles, is high in Indonesia. Many middle-income and upper-income households consider having personal transport a necessity, and it is common for them to own more than one car. The bulk of consumer expenditure on road transport services is devoted to bus services, which includes mini-buses and SUV vans operated by private companies. In cities and towns alike, vans are the most common form of public transport, as there is still an absence of subways. Impact There is no expectation that the public transport situation will improve significantly in Indonesia over the forecast period, so its anticipated that expenditure on personal road transport will continue to increase over the forecast period. As well, as there are no concrete plans for a subway system in the country, its expected that expenditure on buses, coaches and taxis will also continue to increase.
Rail Transport
Consumer expenditure on rail transport increased by more than 183% during the review period, reaching nearly Rp 5 trillion in 2007. Indonesia has a good railway network, especially in Java and Sumatra islands, primarily the legacy of the Dutch colonial era. While the quality of service and the train speed are still far from optimal, the relative affordability of the economy-class trains makes rail journeys an attractive for consumers wanting to travel to other cities within an island. Rail transport has always been considered an integral part of the economy, so much so that Indonesia has a dedicated ministry devoted to railway affairs. Recently, the government imported faster trains from China that have significantly contributed to improved services. However, due to the poor infrastructure with very old railway tracks, only a limited value can be added to the system. Railway fares are less than one-third of airfares. They are almost equal to coach and bus fares, and due to safety and comfort factors consumers consistently choose railways over buses, coaches and other road-based services when they can. Impact The increase in standards of trains and railway services in Indonesia has driven an increase in revenues and in the number of travellers, and this is expected to continue over the forecast period. The number of trains to and from major cities almost doubled over the past five years, and increased accessibility will help drive demand.
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Transport Infrastructure
Most of Indonesias kilometres of multi-lane highways and expressways are toll roads, but they represent only a fraction of Indonesias paved roadways. Although numerous cities are served by airports, not all of them enjoy frequent or heavy traffic. Indonesia is expected to continue to increase its investment in its transportation infrastructure in the near future. Fiscal policy plans include heavy investment in roads, while expansion of air travel may continue to propel growing investment in the nations airports. The presence of private alternatives may help Indonesia overcome some of the limits imposed by federal and local budgets. Indeed, privately owned railways, roadways and airports are an important part of Indonesias transportation system. Even though private ownership adds to the cost of transport, it provides an improvement over alternatives offered by the government.
Table 126 Rp trillion 1995 Purchase of cars, motorcycles and other vehicles Operation of personal transport equipment Transport services #Rail travel #Buses, coaches and taxis #Air travel #Other travel TOTAL
Source: Note:
Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007
2000 2.8 6.4 22.4 2.3 12.6 2.0 5.4 31.6
2002 4.2 9.6 35.2 3.3 20.1 2.9 8.9 48.9
2004 5.2 12.2 42.5 3.7 25.0 3.4 10.4 59.9
2006 6.0 14.0 48.2 4.3 28.0 3.8 12.1 68.2
2007 7.0 16.5 57.5 4.9 33.8 4.4 14.5 81.1
2.0 4.1 12.5 1.7 5.8 1.5 3.5 18.6
Table 127
Consumer Expenditure on Transport (% Analysis and % Growth): 1995/2000/2007/19952007/2000-2007
% analysis/% growth 1995 Purchase of cars, motorcycles and other vehicles Operation of personal transport equipment Transport services #Rail travel #Buses, coaches and taxis #Air travel #Other travel TOTAL
Source: Note:
2000 8.9 20.2 70.9 7.4 40.0 6.3 17.2 100.0
2007 8.7 20.4 70.9 6.0 41.7 5.4 17.9 100.0
1995-2007 250.1 299.6 360.8 183.1 482.2 196.4 316.0 335.3
2000-2007 149.3 159.6 157.3 110.0 167.6 120.0 167.3 157.1
10.8 22.2 67.0 9.3 31.2 7.9 18.7 100.0
Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007
1995 Transport Average of CLIFE 9.85 631.16
2000 9.42 638.30
2002 16.06 656.70
2004 22.57 886.40
2006 30.59 1,028.79
2007 38.31 1,175.78
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countries
Source: National statistical offices, OECD, Eurostat, Euromonitor International
Table 129 % growth
Per Capita Expenditure on Transport (% Growth): 1995-2007/2000-2007
1995-2007 Transport Average of CLIFE countries

Source:
2000-2007 306.48 84.20
289.06 86.29
COMMUNICATIONS AND THE INTERNET

Spending on Communications
During the review period, consumer expenditure on communications increased by more than 485%, reaching Rp 37.7 trillion in 2007, with spending on telecommunications equipment and services accounting for Rp 30.5 trillion. Even the postal service saw an increase in consumer expenditure, reaching Rp 7.2 trillion in 2007. Demand for mobile phones has been a primary driver of growth in the communications sector during the forecast period. In 2000, the number of mobile phone subscribers in Indonesia was 3.7 million; by 2006, that number had jumped to 63.8 million. In 2007, the household ownership rate of mobile phones was nearly 34%, up from 2.3% in 2000. Increasing internet accessibility and usage also contributed significantly to expenditure growth in this sector. In 2000, there were 1.9 million internet users in Indonesia. By 2007, that number had grown to more than 27 million. As well, the household ownership rate of PCs jumped to more than 12% by 2007. Impact Expenditure on communications is projected to increase by more than 31% over the review period, reaching Rp 49.5 trillion in 2015. Growth will be driven by continuing consumer demand for both mobile phones and internet-enabled computers. By 2015, its projected that the household penetration rate for mobile phones in Indonesia will be more than 64%, while the household penetration rate for internet-enabled computers is expected to rise to 17.5%.
Television, Cable and Satellite

Ten nationwide television networks and various regional television stations operate in Indonesia. The household penetration rate for colour TV sets in Indonesia was a relatively high 83% in 2007. In rural areas, television sets are considered to be status symbols, and they are among the first items people purchase when they can afford it. Due to a lack of infrastructure, cable TV services have been only minimally successful in Indonesia; in 2007, the household penetration rate for cable TV services was 0.6%, and its projected that this will rise to only 1.6% in 2015. The household penetration rate for satellite TV services is a bit better. In 2007, 8% of households in Indonesia had satellite TV services, and its projected that this will remain steady, rising slightly to 8.1% in 2015. Impact There is still room for growth in the television market in Indonesia, and its projected that declining unit prices will contribute to volume sales growth over the forecast period. As noted, unlike in other countries in the region, cable and satellite TV services are not expected to see dynamic growth.
Printed Media
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Since the lifting of censorship imposed during the days of Sukarno and Suharto, Indonesians have placed particular value on the freedom and availability of their print media. Circulation rates held steady during the review period, the result of an ever-increasing literacy rate (91.4 in 2007) coupled with increasing disposable incomes that allowed more consumers to afford to buy newspapers and magazines, whether published in Indonesian, English or other languages. Increasing disposable incomes also sparked the successful launches of a wide range of specialty magazines targeted at specific markets, religious groups and age groups. The primary news agencies in Indonesia are Antara (Indonesia National News Agency) and Kantorberita Nasional Indonesia (KNI News Service). Among the most important newspapers in the Indonesian language are Kompas, Pos Kota, Rakyat Merdeka, Suara Merdeka, Berita Buana and Jawa Pos in Surabaya, which has a high circulation among readers in the eastern part of the country. Primary English-language newspapers include the Jakarta Post and the Indonesia Times. Harian Indonesia is a popular Chinese-language newspaper. Pelita (Torch) is written in the Indonesia language specifically for Muslim readers. Popular periodicals in Indonesia include Bola, a sports magazine; Nova, a womens magazine; Femina, also a womens magazine; Oposisi, which covers politics and current events; Matra, a mens magazine; and Gadis, aimed at teenager readers. Impact By 2007, most major newspapers in Indonesia had developed a web presence, providing news and articles to those with access to the internet. Over the forecast period, its expected that, as more households purchase internet-enabled computers, trends in Indonesia will mirror those in other countries and readers will migrate toward web-based news sources, driving down circulation rates for traditional print media.
Telephones
The number of telephone lines in use overall increased by more than 350% between 1995 and 2006, reaching 14.8 million lines in 2006. It is clear that mobile phones have displaced the landline as the preferred form of telephone communication in Indonesia. In 2006, there were 63.8 million mobile phone subscribers, up from 3.7 million 2000. There are many explanations for this phenomenon. Among them is that increased competition in the mobile phone sector drove down unit prices for equipment and subscriptions, making owning a mobile phone more affordable to a larger percentage of the population. The landline sector is still dominated by Telkom, mainly because its comprehensive phone network developed during the companys days as a government monopoly. Impact Increased competition in the mobile phone sector over the forecast period will lead to declining prices, motivating manufacturers to integrate other technologies and features into their products in an effort to differentiate their products and increase value sales. Some players are expected to offer so-called triple-play services, bundling of cable/satellite TV, internet and landline services and offering them at low rates.
Computers and the Internet

The number of internet users in Indonesia grew from nearly two million in 2000 to more than 27 million in 2007. In 2007, the percentage of Indonesian households owning personal computers was a relatively low 12.4%, with the percentage of those owning internet-enabled computers an even lower 4.5%. This is due, in part, to the poor infrastructure, with large parts of the country not being able to access landline connections. Impact Over the forecast period, internet usage is expected to surge in Indonesia, with 17.5% of households projected to own an internet-enabled computer in 2015. Its expected that unit prices of computers will drop, allowing more consumers to be able to afford them. In particular, sales of laptops are expected to increase, due not only to declining prices but also to consumers being attracted to the products mobility and convenience. Because of increased competition among providers, the price of internet services is also expected to decline over the forecast period, again driving increased usage.
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E-commerce
E-commerce is nascent in Indonesia and primarily limited to business-to-business (B2B) applications or automated billing transactions. Most consumers are still concerned about internet security, which remains poor in Indonesia. Most online transactions are conducted in Jakarta, and most of them are by young consumers who are more open to e-commerce. The airline industry in Indonesia has experimented with e-commerce, with airlines like Air Asia offering online booking. However, most consumers remain wary and prefer to go to brickand-mortar travel agents. Impact As the industry tightens up internet security and as consumers begin to have more trust in online transactions, its expected that Indonesians will slowly become more comfortable with e-commerce. In the short term, however, e-commerce is not expected to have a significant impact on consumer spending patterns, and
M-commerce
M-commerce is undeveloped in Indonesia, as it is too advanced to operate efficiently in the current communications infrastructure. However, over the forecast period its expected that infrastructure improvements will lead retailers and others to explore m-commerce and potentially introduce applications to Indonesian consumers.
Table 130 Rp trillion 1995 Postal services Telecommunications equipment Telecommunications services TOTAL
Source: Note:
Consumer Expenditure on Communications: 1995/2000/2002/2004/2006-2007
2000 2.5 6.8 4.1 13.4
2002 4.3 11.7 6.3 22.3
2004 5.1 14.5 7.7 27.4
2006 5.8 16.8 9.1 31.7
2007 7.2 19.8 10.7 37.7
1.1 3.8 1.5 6.4
Table 131
Consumer Expenditure on Communications (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 Postal services Telecommunications equipment Telecommunications services TOTAL
Source: Note:
2000 18.6 51.0 30.4 100.0
2007 19.1 52.4 28.5 100.0
1995-2007 568.8 415.8 600.0 485.2
2000-2007 188.9 189.1 163.4 181.3
16.7 59.5 23.8 100.0
Per Capita Expenditure on Communications: 1995/2000/2002/2004/2006-2007
1995 Communications Average of CLIFE 3.40 108.36
2000 4.00 143.19
2002 7.30 163.90
2004 10.32 223.60
2006 14.21 260.03
2007 17.81 306.50
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countries
Source: National statistical offices, OECD, Eurostat, Euromonitor International
Table 133 % growth
Per Capita Expenditure on Communications (% Growth) 1995-2007/2000-2007:
1995-2007 Communications Average of CLIFE countries

Source:
2000-2007 344.76 114.05
423.12 182.84
Table 134
Penetration of Televisions and Number of TV Channels: 1995/2000/2002/2004/2006-2007
per 100 households 1995 Black and white TV set (% of households) Colour TV set (% of households) National TV channels (number)
Source:
2000 38 52 6
2002 32 63 6
2004 23 73 6
2006 16 80 6
2007 14 83 6
46 22 7
National Statistical Office, European Audiovisual Observatory, Euromonitor International
Table 135
Penetration of Televisions and Number of TV Channels (% Growth): 1995-2007/20002007
% change 1995-2007 Black and white TV set Colour TV set National TV channels
Source:
2000-2007 -63.31 59.23 0.00
-69.59 276.36 -14.29
National Statistical Office, European Audiovisual Observatory, Euromonitor International
Table 136 % of households
Penetration of Cable and Satellite Television: 1995/2000/2002/2004/2006-2007
1995 Cable TV Satellite TV system

Source:
2000 0.06 8.02
2002 0.19 8.02
2004 0.35 8.03
2006 0.54 8.04
2007 0.65 8.05
0.01 6.66
Euromonitor International from trade sources and national statistics
Table 137 % change
Penetration of Cable and Satellite Television (% Growth): 1995-2007/2000-2007
1995-2007 Cable TV Satellite TV system

Source:
2000-2007 955.35 0.37
7,260.79 20.79
Euromonitor International from trade sources and national statistics
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Table 138
National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users: 1995/2000/2002/2004/2006
as stated 1995 National telephone calls (million minutes) International outgoing telephone calls (million minutes) Total Telephone lines in use ('000) Mobile telephone subscribers ('000)
Source:
2000 52,859 314 53,173 6,663 3,669
2002 63,562 289 63,851 7,750 11,700
2004 81,933 251 82,184 10,376 30,337
2006 96,831 198 97,028 14,821 63,803
28,256 206 28,462 3,291 211
National Statistical Office, International Telecommunications Union, World Bank, Trade sources, Euromonitor International
Table 139
National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users(% Growth): 1995-2006/2000-2006
% change 1995-2006 National telephone calls International outgoing telephone calls TOTAL Telephone lines in use Mobile telephone subscribers
Source:
2000-2006 83.19 -37.03 82.48 122.45 1,638.82
242.69 -3.94 240.91 350.36 30,189.64
National Statistical Office, International Telecommunications Union, World Bank, Trade sources, Euromonitor International
Table 140 As stated
Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007
2000 Internet users ('000) ISDN subscribers ('000) PC penetration (% of households)

Source:
2002 4,500.0 3.9 3.0
2004 11,226.1 3.4 7.3
2006 21,284.4 3.1 10.5
2007 27,100.4 3.0 12.4
1,900.0 5.0 0.6
National Statistical Office, International Telecommunications Union, World Bank, Trade Sources, Jupiter Research, Euromonitor International
Table 141 % change
Household PC Penetration and Internet Usage (% Growth): 2000-2007
2000-2007 Internet users ISDN subscribers PC penetration

Source:
1,326.33 -40.02 1,903.23
National Statistical Office, International Telecommunications Union, World Bank, Trade source, Jupiter Research, Euromonitor International
LEISURE AND RECREATION

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Consumer Lifestyles
Indonesia
Spending on Leisure and Recreation

Leisure and recreation products and services have historically been considered luxuries by most Indonesians, as low annual disposable incomes, for the most part, allowed them only to purchase the basic necessities. However, with rising disposable incomes, far more consumers found they could afford to spend money on leisure and recreation activities. The largest expenditure over the review period was on newspapers, magazines, books and stationery, which grew from spending of Rp 6.1 trillion in 1995 to Rp 17.6 trillion in 2007. As the most affordable form of leisure, the strong growth of spending on books, magazines and newspapers is not surprising. At the same time, while starting from a small base, expenditure on more expensive package holidays soared, increasing by nearly 300% during the forecast period. Overall, spending on leisure and recreation increased by 158% during the review period, reaching nearly Rp 49 trillion in 2007. Impact For the most part, expenditure on leisure and recreation products and services is linked with the general economic climate and rates of disposable income. In particular, in Indonesia consumers tend to save or at least look for affordable ways to spend their leisure time. Its expected that Indonesian consumers will continue to demand books and magazines, and sales are expected to increase over the forecast period. On the other hand, growth rates will be offset a bit by increasing internet usage, which typically has an impact on sales of print media. While the number of bookstores in the country is still too few to cater to the overall population, there are a few bookstore chains which performed well and continued to record strong sales, such as Gramedia and Toko Gunung Agung.
Shopping for Leisure Goods

Indonesians usually purchase books, magazines and newspapers in bookstores, news agents or kiosks. It is common to shop in big bookstore chains like Gramedia. In the bigger cities, there are also many vendors selling magazines and newspapers on the streets, especially at traffic lights, weaving their way from one vehicle to another to offer their products. For other leisure goods, such as cameras, consumers tend to shop in specialist stores. For recreational services and package holidays, it is still common to consult travel agents and make bookings through them. Impact Its expected that specialist stores will continue to be the primary distribution channels for leisure goods over the forecast period, although its also expected that hypermarkets and other modern retail venues will capture a growing portion of distribution share. As well, as consumers become more comfortable conducting transactions online, its expected that internet retailers will increase their distribution share over the forecast period.
Leisure Time
While Indonesians lead relatively well-paced lifestyles, many people still have ample time for leisure activities after work or on weekends. Other than during the school holiday period, there is no traditional period when Indonesians go major holiday trips. For the most part, leisure time is spent with family members. The festive period of Idul Fitri often involves a lot of travelling, as Indonesians return to their hometowns in order to spend time with their families. Affluent consumers can afford to take holiday trips whenever they choose, and many go towards the end of the year.
Public Holidays and Gift Occasions/celebrations

The most important public holiday in Indonesia is Idul Fitri, which marks the end of the fasting month Ramadan. Gift giving, mostly in the form of hampers, is common in urban areas amongst relatives, business associates and neighbours. Although the practice declined as a result of the 1997-1998 economic crisis, its popularity has gradually returned. The Idual Fitri celebration is spread out over several weeks, with many people making the journey back to their hometowns. Aside from Idul Fitri, other Islamic festivals like Idul Adha, which marks the end of pilgrimage, are also popular times to celebrate. Christmas is celebrated only by members of the minority Christian population.
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Consumer Lifestyles
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Culture
Indigenous culture still plays a huge role in Indonesians lives, despite the introduction of many Western ideas and trends. With more than 300 ethnicities existing in the country, there is a diverse range of cultural practices, including a wide variety of types of marriage ceremonies and different types of cultural festivals. The Javanese, being the biggest ethnic group, has its cultural activities most prominently on display. Many celebratory activities take place, such as celebrating the birth of a child and celebrating 40 days after the birth. Cultural festivals featuring traditional dances and arts take place throughout the year. Islamic culture also has strong influence in Indonesia, as the majority of the population is Muslim. Traditional weddings, with traditional wedding clothing, are still in demand by couples in Indonesia, although in the big cities like Jakarta there is less demand due to many adopting Western-style weddings. There is healthy demand for the national attire of batik, adopted from the Javanese, as well as demand for other batik arts.
Sport and Exercise

The most popular sport in Indonesia is football. Football is highly popular as a spectator sport, with the television networks showing matches from the major leagues around the world. (The domestic football league does not have high quality despite the peoples strong interest.) An affordable sport, children in both rural and urban areas can use any space available to play football. Another popular sport is badminton, which is played by Indonesians in both in urban and rural areas. Badminton is also very affordable, with badminton rackets and shuttlecocks being inexpensive. On the other hand, several sports, such as tennis and cycling, remain less popular due to the expense involved or because of the lack of affordable facilities. While cycling itself is relatively affordable, in big cities there is no appropriate road structure meant for cyclists. In rural areas, cycling is seen more as a means of transport rather than as a form of exercise. The concept of exercise for fitness is not deeply rooted among Indonesians but, increasingly, middle-income and upper-income consumers living in big cities in Indonesia have begun going to gyms and fitness centres in an effort to maintain healthy lifestyles. Impact The popularity of badminton and football means that equipment for these sports is in continuous demand, and this is expected to continue over the forecast period. As well, sales tend to spike whenever major football tournaments like the World Cup or the European Championship are held.
Going Out
Dining out is more common among urban dwellers in Indonesia, and a large number of new restaurants opened in cities during the review period. There have also been cafs sprouting up in big cities like Jakarta, where the more affluent Indonesians go out and socialize with their friends. Going to restaurants and other eating establishments, rather than going to clubs or bars, is more common in Indonesia, as the majority of population do not consume alcohol. Regardless, in big cities like Jakarta there are a lively night scenes that cater to the more Westernised, affluent consumers. Impact Rising rates of urbanisation together with growing disposable incomes are expected to drive increased sales at restaurants and other dining establishments in Indonesia over the forecast period. Cafs/bars and full-service restaurants are also expected to see good growth.
Travel and Tourism

Travel and tourism is an important part of the Indonesian economy, but the sector has yet to reach the massive potential. Foreign tourist arrivals are mostly from neighbouring countries like Singapore and other Asia-Pacific countries like China and Australia. Bali is the most popular destination for foreign tourists. Domestic tourism is more widespread, with historical areas like Borobudur and Prambanan temples attracting interest rather than beaches. The good growth of the travel and tourism industry encouraged growth in the accommodation sector, with per capita expenditure on accommodation growing by more than 195% between 2000 and 2007. However, the resulting per capita expenditure of US$3.02 in 2007 was still far from the US$139.74 spent on average by consumers in other CLIFE countries.
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Consumer Lifestyles
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Impact Growth in the travel and tourism industry spurred increased sales in a wide range of tangential sectors, including foodservice and alcoholic and non-alcoholic drinks, and this is expected to continue over the forecast period. In fact, the alcoholic drinks sector in Indonesia is largely propped up by sales to the foreign tourists, as most Indonesians do not drink alcohol.
Table 142 Rp trillion 1995 A-V/photographic/ information processing equipment Other major recreational durables Other recreational items Recreational and cultural services Newspapers, magazines, books and stationery Package holidays TOTAL
Source: Note:
Consumer Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007
2000 8.7 3.1 1.8 3.3 7.6 0.2 24.7
2002 10.9 4.0 2.2 4.4 10.3 0.2 32.0
2004 11.2 4.6 2.6 5.2 12.1 0.3 35.9
2006 12.4 5.2 3.1 6.0 15.1 0.3 42.0
2007 14.2 5.9 3.7 7.3 17.6 0.3 48.9
6.5 2.3 1.4 2.5 6.1 0.1 18.9
Table 143
Consumer Expenditure on Leisure and Recreation (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 A-V/photographic/ information processing equipment Other major recreational durables Other recreational items Recreational and cultural services Newspapers, magazines, books and stationery Package holidays TOTAL
Source: Note:
2000 35.4 12.7 7.2 13.4 30.7 0.6 100.0
2007 29.0 12.1 7.5 14.9 36.0 0.6 100.0
1995-2007 116.8 155.4 159.7 192.4 186.9 299.7 158.0
2000-2007 62.4 88.4 106.7 120.8 132.0 83.1 98.2
34.5 12.2 7.4 13.1 32.3 0.4 100.0
Per Capita Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007
1995 Leisure and recreation Average of CLIFE countries

Source:
2000 7.37 481.10
2002 10.48 501.63
2004 13.53 663.63
2006 18.85 748.13
2007 23.08 853.57
10.01 473.71
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Table 145 % growth
Per Capita Expenditure on Leisure and Recreation (% Growth): 1995-2007/2000-2007
1995-2007 Leisure and recreation Average of CLIFE countries

Source:
2000-2007 213.43 77.42
130.62 80.19
Consumer Expenditure on Accommodation: 1995/2000/2002/2004/2006-2007
1995 TOTAL
Source: Note:
2000 3.4
2002 4.3
2004 5.0
2006 5.6
2007 6.4
2.4
Table 147
Consumer Expenditure on Accommodation (% Analysis and % Growth): 1995/2000/2007/1995-2007/2000-2007
% analysis/% growth 1995 TOTAL

Source: Note:
2000 100.0
2007 100.0
1995-2007 169.3
2000-2007 86.7
100.0
Per Capita Expenditure on Accommodation: 1995/2000/2002/2004/2006-2007
1995 Accommodation Average of CLIFE countries

Source:
2000 1.02 73.47
2002 1.40 77.05
2004 1.87 105.42
2006 2.50 120.89
2007 3.02 139.74
1.26 72.52
Table 149 % growth
Per Capita Expenditure on Accommodation (% Growth): 1995-2007/2000-2007
1995-2007 Accommodation Average of CLIFE countries

Source:
2000-2007 195.30 90.20
140.71 92.68
EATING OUT
Spending on Catering
Consumer expenditure on catering increased by nearly 246% during the review period, reaching Rp 118.4 trillion in 2007. On the other hand, in 2007 Indonesians per capita spending on catering, US$55.92, was still less than one-tenth of that, on average, spent by consumers in other CLIFE countries. The number of restaurants
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Consumer Lifestyles
Indonesia
serving foreign cuisines or Indonesian versions of foreign cuisines increased during the review period, especially in big cities like Jakarta. While cooking and preparing food at home is still the common practice in many homes, busier consumers, particularly those living in urban areas, now seek convenience and time-saving options, and they dine out more frequently, especially during lunch when workers are often unable to return home for meals. Impact As long as Indonesians disposable incomes continue to rise, spending on catering will increase. Catering venues are also considered attractive for business functions as well as for such things as weddings, and its expected that more Indonesians will take advantage of catering establishments for hosting these activities.
Attitudes To Eating Out

It is more common for Indonesians to eat home-cooked food rather than dine out. The exception is lunch, when Indonesians are usually at work, and they eat out rather than returning home or bringing a homemade lunch. There are many street stalls/kiosks that offer affordable meals, and these outlets are the usual destinations for office workers. As well, many Indonesians like to go out and eat in big groups, either with the family or with friends. Many celebrations are also often accompanied by going out to eat out at restaurants. Overall, most Indonesians consider dining out as a leisure activity as opposed to a way of saving time, and this has led to increased demand for full-service restaurants. Cafs also showed strong growth during the review period, as these outlets offer an atmosphere conducive for outings and gatherings. Home delivery and takeaway options have not taken off in Indonesia. Again, most Indonesians consider meals to be relaxed and enjoyable activities, and they are not looking for immediate consumption. Regardless, there are some consumers who prefer to eat their meals at home so some restaurant, including fast-food restaurants like McDonalds and KFC, offer home delivery and takeaway services.
Source: Note:
Consumer Expenditure on Catering: 1995/2000/2002/2004/2006-2007
2000 50.4
2002 77.0
2004 86.1
2006 99.5
2007 118.4
34.2
Table 151
Consumer Expenditure on Catering (% Growth): 1995-2007/2000-2007

Source: Note:
2000-2007 135.1
245.8
Per Capita Expenditure on Catering: 1995/2000/2002/2004/2006-2007
1995 Catering Average of CLIFE countries

Source:
2000 15.04 367.37
2002 25.26 392.47
2004 32.45 519.13
2006 44.59 587.27
2007 55.92 666.48
18.09 378.85
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Table 153 % growth
Per Capita Expenditure on Catering (% Growth): 1995-2007/2000-2007
1995-2007 Catering Average of CLIFE countries

Source:
2000-2007 271.78 81.42
209.09 75.92
BANKING AND FINANCIAL SERVICES

Spending on Banking and Financial Services
While most Indonesian consumer are familiar with the concept of banks and the benefits of using banks, there is still a substantial proportion who do not use banks. By 2007, less than one-third of the Indonesian population used banks, although that was an increase from the less than one-fifth of Indonesians who used banks in 2002. The financial cards sector is also in an early stage. Consumers are familiar with ATM cards and credit cards but not other more sophisticated financial cards. Overall, the increased number of people using bank services encouraged growth of more than 91% in expenditure on financial services between 2000 and 2007, with expenditure reaching Rp 6.5 trillion in 2007. Investments in bonds and other forms of financial investments are not widespread in Indonesia. Many Indonesian investors would rather buy land or precious metals. Expenditure on insurance in Indonesia was also minimal, reaching Rp 8.7 trillion in 2007, although there was strong growth in expenditure between 2000 and 2007. In short, most Indonesians do not see the need to have insurance. There is still a strong perception among many consumers that insurance is a luxury only for the affluent. On a per capita basis, Indonesians spent US$4.12 on insurance products in 2007 compared to US$254.30 spent on average by consumers in other CLIFE countries. Impact Although the industry is in its early stages, its expected that expenditure on the banking and financial services industry will continue to grow over the forecast period as Indonesians increasingly find themselves having to survive in a sophisticated global economy.
Pensions
In Indonesia, only civil servants are automatically entitled to government pensions. The pension amount is not substantial, but it is nevertheless adequate. Salaries of civil servants in Indonesia tend to be relatively lower than those in the private sector, and the pensions offered are considered to be a part of the effort to balance that. Government employees never experience pension shortfalls. In contrast, pensions in the private sector are optional based on opt-in scheme, and not all companies offer pension schemes, especially the smaller ones. Large multinational companies set up management companies for their own pension funds, and the amount of pension paid to retirees is based on the level of their own monthly contributions plus company contributions. Needless to say, since pension plans are optional in the private sector, many Indonesians do not have them. Instead, retired Indonesians typically rely on their own savings as well as monetary contributions from their children. Most Indonesians live with their children after retirement, and it is part of Indonesian culture to take care and provide for parents.
Table 154 Rp trillion 1995 TOTAL 2.6 2000 4.5 2002 6.6 2004 7.8 2006 8.9 2007 8.7 Consumer Expenditure on Insurance: 1995/2000/2002/2004/2006-2007
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Source: Note:
Table 155
Consumer Expenditure on Insurance (% Analysis and % Growth): 1995-2007/2000-2007
% analysis/% growth 1995 TOTAL

Source: Note:
2000 100.0
2007 100.0
1995-2007 235.1
2000-2007 95.1
100.0
Per Capita Expenditure on Insurance: 1995/2000/2002/2004/2006-2007
1995 Insurance Average of CLIFE countries

Source:
2000 1.34 140.22
2002 2.17 148.55
2004 2.96 199.71
2006 3.98 223.22
2007 4.12 254.30
1.38 138.25
Table 157 % growth
Per Capita Expenditure on Insurance (% Growth): 1995-2007/2000-2007
1995-2007 Insurance Average of CLIFE countries

Source:
2000-2007 208.51 81.35
199.50 83.95
Consumer Expenditure on Financial Services: 1995/2000/2002/2004/2006-2007
1995 TOTAL
Source: Note:
2000 3.4
2002 4.9
2004 6.0
2006 7.0
2007 6.5
2.1
Table 159
Consumer Expenditure on Financial Services (% Analysis and % Growth): 19952007/2000-2007

Source: Note:
2000-2007 91.6
215.9
Per Capita Expenditure on Financial Services: 1995/2000/2002/2004/2006-2007
1995
2000
2002
2004
2006
2007
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Consumer Lifestyles
Indonesia
Financial services Average of CLIFE countries

Source:
1.08 144.85
1.01 154.66
1.62 152.17
2.27 199.22
3.12 231.06
3.06 264.36
Table 161 % growth
Per Capita Expenditure on Financial Services (% Growth): 1995-2007/2000-2007
1995-2007 Financial services Average of CLIFE countries

Source:
2000-2007 202.98 70.93
182.38 82.51
DEFINITIONS
CLIFE: Consumer Lifestyles Countries (as listed below) Euromonitor Internationals Consumer Lifestyle series covers the following countries:
Summary 1 Eastern Europe Country Coverage Belarus - Bulgaria - Croatia - Czech Republic - Estonia - Hungary - Latvia - Lithuania - Macedonia -Poland Romania - Russia - Serbia and Montenegro - Slovakia -Ukraine - Slovenia Austria - Belgium - Denmark - Finland - France Germany - Greece - Ireland - Italy - Netherlands Norway - Portugal - Spain - Sweden - Switzerland Turkey - United Kingdom Australia - New Zealand Azerbaijan - China - Hong Kong, China - India Indonesia - Japan - Kazakhstan - Malaysia - Indonesia - Indonesians - Singapore - South Korea - Taiwan Thailand - Turkmenistn - Uzbekistn - Vietnam Canada - United States Argentina - Bolivia - Brazil - Chile - Colombia - Costa Rica - Dominican Republic - Ecuador - Guatemala Indonesia - Peru - Uruguay -Venezuela Algeria - Cameroon - Egypt - Iran - Israel - Kenya Kuwait - Morocco - Nigeria - Indonesia - South Africa Tunisia - United Arab Emirates
Western Europe
Australasia Asia Pacific
North America Latin America
Middle East and Africa
Source:
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Consumer Lifestyles - Indonesia

Euromonitor International October 2009

List of Contents and Tables

Per Capita Expenditure on Food (% Growth): 1995-2007/2000-2007 ........................... 35

Table 97 Table 98 Table 99

CONSUMER LIFESTYLES IN INDONESIA

Increasing Rate of Urbanisation Affects Consumer Food Choices

Awareness of Health and Wellness Issues Growing in Indonesia

Population by Marital Status

Population by Rural/urban Areas

Population by Age and Gender: 1995/2000/2005/2007/2010/2015

National statistics, UN, Euromonitor International As of 1st January

Population by Age and Gender (% Analysis and % Growth): 1995/2007/2015/19952007/2007-2015

Median Age of Population: 1995/2000/2005/2007/2010/2015

1995 Median age of population

National statistics, UN, Euromonitor International

Table 4 Change in years

Median Age of Population (Growth): 1995-2007/2007-2015

1995-2007 Median age of population

Population Change: 1995/2000/2002/2004/2006-2007

1995 Live births Deaths Net migration Balance

2000 4,514.29 1,446.26 -193.31 2,874.71

2002 4,514.35 1,444.39 -179.98 2,889.98

2004 4,487.88 1,449.45 -184.27 2,854.16

2006 4,426.85 1,459.94 -184.94 2,781.97

2007 4,386.30 1,467.77 -179.56 2,738.97

4,547.34 1,511.71 -170.19 2,865.45

National statistics, UN, Euromonitor International

Population Change (% Growth): 1995-2007/2000-2007

1995-2007 Live births Deaths Net migration Balance

2000-2007 -2.84 1.49 -7.12 -4.72

-3.54 -2.91 5.51 -4.41

Birth Rates: 1995/2000/2002/2004/2006-2007

per '000 inhabitants 1995 Birth rates Average of CLIFE countries

2000 21.3 17.0

2002 20.8 16.4

2004 20.1 16.3

2006 19.3 16.1

2007 18.9 16.0

National statistics, UN, Euromonitor International

Death Rates: 1995/2000/2002/2004/2006-2007

per '000 inhabitants 1995 2000 2002 2004 2006 2007

Death rates Average of CLIFE countries

National statistics, UN, Euromonitor International

Birth Rates (Actual Growth): 1995-2007/2000-2007

Percentage points 1995-2007 Birth rates Average of CLIFE countries

2000-2007 -2.39 -1.03

Death Rates (Actual Growth): 1995-2007/2000-2007

Percentage points 1995-2007 Death rates Average of CLIFE countries

2000-2007 -0.50 -0.04

Fertility and Birth: 1995/2000/2002/2004/2006-2007

2000 2.45 27.98

2002 2.38 27.90

2004 2.32 27.77

2006 2.24 27.64

2007 2.20 27.57

National statistics, Euromonitor International

Fertility and Birth (Growth): 1995-2007/2000-2007

2000-2007 -0.25 -0.41

Table 13 '000/as stated

Population by Marital Status: 1995/2000/2002/2004/2006-2007

2000 95,409 2,082 8,567 105,636 211,693 23.78

2002 99,436 1,973 8,756 107,300 217,466 23.72