Page 14 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

SECTION 01
INTRODUCTION
OVERVIEW
NEW ERA OF
GROWTH AND
TRANSFORMATION
Modern Indonesia is being shaped by sizeable forces – some old, some new – and to understand their effects is to begin to appreciate the changing expectations and opportunities of the Indonesian consumer market.
This is a land of contrasts and contradictions. There is tension between young and old, modernity and tradition, aspiration and risk-aversion.
Overwhelmingly, though, this is
a market being driven forward by the youth of its population
– among the youngest in the region – and by the energy of its people.
There is growing
wealth in
Indonesia; many
millions of people
are enjoying their
first taste of discretionary spending, as they move from subsistence living to stability and the ability to plan.
The ranks of the middle classes, meanwhile, are expanding apace, and are forecast to represent between 130 and 140 million people by 2030.
At the top end
of the income spectrum, a small but significant group of super- rich are living truly luxurious lives.
This contrast, not just between rich and poor but also between the country’s rich heritage and the onslaught of modern life, is evident all over the country.
Cybercafés, designer boutiques and traffic jams are juxtaposed with the simplicity of life for those who remain
reliant on the land and the sea for their livelihoods. Tiny street-side warungs – family-run shops often crafted from wood – still have a place in a retail landscape that runs from wet markets to gleaming malls.
Urbanization is intensifying, as Indonesia’s cities act as beacons
of opportunity; the number of Indonesians living in urban areas
is expected to reach 71 percent of the total population, or 209 million people, by 2030. And while city- dwellers have much in common, there are still significant distinctions between the country’s urban centers. Jakarta is the country’s financial powerhouse, a cosmopolitan center with a worldly population, while the city of Yogyakarta, just an hour’s flight away, has a distinctly different flavor, retaining greater closeness
to Javanese heritage and traditional values.
14 BrandZTM Top 50 Most Valuable Indonesian Brands 2015