In our latest in-depth report on Indonesia, Ipsos’ local team share insights into the country, including its entrepreneurial spirit and rapidly developing infrastructure across its major cities.
Key points from Indonesia Flair 2019 include:
1. Despite the size of its territory, population and economy, Indonesia remains surprisingly low-profile in conversations abroad
Disasters like tsunamis, floods, volcanic eruptions and earthquakes... These are the topics most frequently associated with Indonesia in the world’s news-cycle. But the reality is that, beyond these episodic tragedies, Indonesia is an economically thriving, politically stable, and socially dynamic nation.
2. Indonesia is competitive and is catching up with the most advanced Asian countries to increase its weight in the region
Indonesia ranks 32nd, up 11 places, between France and the Czech Republic, in the latest IMD World Competitiveness Rankings 20191 report. Its modern and efficient infrastructure in particular makes the country more attractive than ever before for foreign investors.
3. Indonesia uses the most advanced technologies to put the consumer at the very heart of product design
Manufacturing 4.0 focuses on the creation of personalised and unique products, as well as adapting existing products to each consumer’s personal preferences. The consumer is directly involved in the process, communicating with the machines and the robots to ultimately control the entire production line.
4. Indonesia’s population is healthier and wealthier, but ageing
In 2035, 14% of Indonesia’s population will be over 65. These elderly consumers will be eager to enter old age in the best possible health condition so that they can fully enjoy more free time and the money they’ll have saved by then.
5. Indonesia’s shopping malls are closing because of e-commerce competition
Many people now prefer to shop online rather than offline, enjoying special discounts and bonuses on purchases Time spent in traffic jams and the heat hardly make it desirable to spend hours in the shopping districts.
6. Indonesian influencers and consumers are instagram-addicts
Instagram’s wide following offers great potential for small businesses and new brands to reach out to new customers in this large consumer base: 4 in 5 Instagrammers turn to the platform to find out more about brands. Six in ten small or medium business owners have also inspiration from other businesses on Instagram, with a quarter of them agreeing that they could not have established their business without it.
7. Indonesian consumers desire branded products
Brands matter a lot to Indonesians, and while this plays in favour of the big international ones, local Indonesian brands are also gaining momentum and are sometimes even more expensive than their foreign counterparts.
8. Indonesia is experiencing the rise of “one-to-few” marketing
One-to-few marketing consists of addressing niche, or at least very specific and extremely well-defined segments in order to combine the advantages of one-to-many (mass marketing) and one-to-one marketing. This is particularly relevant in a context of 4.0 product design and the roll-out of e-commerce.
9. Indonesia has a strong entrepreneurial spirit
Developments in education and infrastructure greatly contribute towards Indonesian entrepreneurialism today. For example, while it had never been considered possible before, small businesses in the western part of Indonesia can now reach out to consumers at the opposite end of the archipelago, and vice versa.
10. Indonesians aspire to a stress-free and fluid life
In a country having lived through so many trials since it became an independent nation 70 years ago, anything that makes life easier and more fluid is welcome. This is a major aspiration of all Indonesian consumers and a real key to success in this fascinating market.