An overview of trending topic: Growing Indonesian Consuming Class

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A trending topic:
Growing Indonesia Consuming Class Profile
2013

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3. Executive summary
•
Indonesia population and economics is growing and one of the driver is the growing of the Consuming
Class (individuals with annual net income above IDR 36mn) which Java and Sumatra dominate and will
continue to do so
•
80% of the Consuming Class (or around population of 64mn) is people who have expenditure around IDR
2-5mn per month. And we identify the population is mostly at 15-24 years old with 3-5 years working
experience (mostly at staff and officer level)
•
Furthermore, we notice that most of Consuming Class population only
spend 8% of their income for savings and investment. Following is
share of household spend of the Consuming Class population:

4. Indonesia’s population and economics keeps growing by time. Thus,
creating so much opportunities for business
Indonesia Population (2003-2013)
Indonesia GDP per capita
at constant price (2003-2013)
260.0
250.0
15.0
13.0
CAGR
1.5%
11.0
(in million)
(in million)
240.0
230.0
220.0
210.0
CAGR
4.0%
9.0
7.0
5.0
3.0
200.0
1.0
190.0
-1.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

5. McKinsey research shows Indonesian consuming class will grow almost
double in 10 years since 2010

6. In line with McKinsey research in defining Indonesian consuming class, BCG reported
Middle and Affluent Class is growing, which Java and Sumatra dominate and will
continue to do so

7. BCG research show that most of Middle and Affluent Class (MAC) comes from the
Middle and Upper Middle class (approx. 80% of total MACs) which grow double by
2020
64.8mn
or 87% of
Total MACs
117.5mn
or 83% of
Total MACs

8. Based on Kelly Services placement profile, we identify that Middle and Upper Middle
class are population with working experience around 2-5 years
Experience
Range Salary
Qualification
0-2 years
IDR 1.5mn – IDR
3.5mn
D3 - S1
2-5 years
IDR 2.5mn – IDR
5mn
S1 (Bachelor
Degree)
> 5 years
> IDR 5mn
S1 - S2 (Master
Degree)
Source : Kelly Services, Indonesia Salary Guide 2013
Spread over industries and most of them
are at staff and officer level
Accounting & Finance
Banking
Engineering and Technical
Human Resources and Others
Tax Accountant, Payroll Clerk,
Tax Admin, Accounts Assistant,
Bank Teller, Customer Service,
Back Office Officer (i.e. Bank
Operation Officer, Compliance
Officer, Trade Finance Officer,
etc.)
IT Helpdesk, Electrical Design
Engineer, Mechanical Design
Engineer, Database
Administrator, Software QA/Test
Analyst
Training Executive, Recruiter, HR
Officer, Secretary,
Warehouse/Store Assistant
Source : Kelly Services, Indonesia Salary Guide 2013

9. From BPS data, we identify that the Middle and Upper Class mostly are
at 15-24 years old and few at range of 25-44 years old
Experience
Range Salary
Qualification
0-2 years
IDR 1.5mn – IDR
3.5mn
D3 - S1
2-5 years
IDR 2.5mn – IDR
5mn
S1 (Bachelor
Degree)
> 5 years
> IDR 5mn
S1 - S2 (Master
Degree)
Source : Kelly Services, Indonesia Salary Guide 2013
Middle and Upper Middle class is in
range of 15-24 years old
(# of people)
Indonesia Population
By Age Group
>55
11%
45-55
11%
25-44
32%
<15
29%
15-24
17%
No.
1
2
3
4
5
Age Group
< 15
15-24
25-44
45-55
> 55
Total
Male
36,666,531
21,259,678
39,669,743
13,333,003
13,097,721
124,026,675
Female
34,594,757
21,050,906
39,347,721
13,131,353
14,208,587
122,333,325
Total
71,261,288
42,310,584
79,017,464
26,464,356
27,306,308
246,360,000
Source: BPS or Indonesia Central Statistic Bureau ; define population aged 15 years and
over as Working Age population

10. Furthermore, McKinsey research shows that the major population of consuming class
(Middle Class population) only spend 8% of their income for savings and investment

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