• Indonesia has a young and increasing population. Half of the population is under 25 and
30% are under 14. Purchasing power has recovered in recent years as solid economic
growth has been restored.
• The country is urbanising rapidly, which is leading to mixing and melding of many traditions.
It is also exposing consumers to international tastes and trends.
• In 2003, households with average monthly spending over Rp1 250 000 (approx.
A$200/month) accounted for 12% of households nationally and 26% of households in
Jakarta.
• At lower incomes, typical diets include rice with some modest garnishing and vegetables.
Moderately higher incomes permit a more varied diet with a significantly higher share of
spending on fish, meat, eggs, dairy and fruit. Spending on prepared foods rises rapidly
with income.
• Urban Indonesians have traditionally eaten out a lot. Their spending on convenience foods
is also rising strongly.
• Almost 90% of Indonesians are Muslim. Most observe Islamic dietary laws.
• Although the Indonesian economy is recovering and growing steadily, the Asian economic
crisis has left consumers with a stronger focus on value for money.
• Looking to the future, and assuming moderate economic growth, per capita consumption
of temperate fruit, poultry, beef, other meat, baked products and dairy goods will grow
most rapidly. Consumption of cereals will grow slowly, except for wheat (and flour-based
products).
• Packaged goods likely to enjoy strong growth include baby food and confectionery. Sales
of frozen and chilled foods as well as ready to eat meals will also grow, although off
a low base.