Professional Documents
Culture Documents
Consumer Lifestyles in Indonesia
Consumer Lifestyles in Indonesia
Consumer Lifestyles in Indonesia
October 2021
Lifestyles Country Report Series: Set of Four Reports
Megatrends: Combines insights using survey and how they connect with our
eight megatrends. Case studies demonstrate how companies are responding to
changing attitudes and expectations in relation to each megatrend.
Consumer Values and Behaviour: Reviews shifting consumer traits and values that
influence purchasing and consumption behaviours. (Visual only report)
Consumer Lifestyles in Indonesia
▪ Consumer Landscape
▪ Life Priorities
▪ Home Life
▪ Eating Habits
▪ Working Life
▪ Sustainable Living
▪ Leisure Habits
▪ Health and Wellness
▪ Shopping Habits
▪ Technology
CONSUMER LIFESTYLES IN INDONESIA
Life priorities
▪ Despite the ongoing ravages of the pandemic and the slow vaccination programme, most Indonesians remain far
more optimistic about the future than their global counterparts. 78% of respondents (compared to 51% globally) say
their lives will be better in future. In particular, 71% (compared to 48% globally) say they believe they will be
healthier in future.
▪ Indonesians have traditionally relied on their strong family ties to support them during precarious times, and this
has certainly been the case during the recent lockdowns. According to our survey, 49% of respondents say they
prioritise finding time to spend with their partners/spouses while 42% say they prioritise finding time to spend with
their children. Consumers’ strong connections typically spread beyond the nuclear family: 52% of respondents
(compared to 18% globally) say they prioritise spending time with members of their extended families. In contrast,
only 9% of respondents say they now prioritise finding time to spend with friends.
▪ More recently, many have had to rely on the strong bonds they have traditionally had with their local communities.
67% of survey respondents (compared to 49% globally) say they believe that being active in the community is
important and 57% (compared to 41% globally) say they expect that they will be even more engaged in their
community in future.
Work is a high priority well above finding time for personal pursuits
Generation Z show a shift in priorities away from work to more personal time
Home life
▪ Indonesians often use their homes as social hubs: 46% of survey respondents (compared to 31% globally) say they
entertain friends and family who do not live with them at least weekly. At the same time, in the midst of social
distancing mandates and similar new rules, many are increasingly turning to technology to stay connected to those
outside the home: 85% say that while at home they connect at least weekly with friends or family via
communication/messaging apps such as WhatsApp and Facebook Messenger.
▪ The number of Indonesians working from home has been boosted as a result of the pandemic. Not surprisingly, 42%
of survey respondents (compared to 17% globally) say they prefer minimalist home design, an uncluttered approach
that allows homes to be multifunctional while avoiding feelings of cramped and restricted living. In addition,
consumers are taking on an increased number of at-home leisure activities: for example, 73% of respondents
exercise at home, while 60% play video games at home at least weekly.
▪ Due to rising home prices/rental rates, many younger Indonesians, especially those living in urban areas, are
beginning to consider sharing living spaces with like-minded others as an affordable alternative to buying or renting
entire homes/apartments by themselves. Although only 18% of millennial respondents currently say they look for
shared living spaces, that number is expected to grow as house prices and rental rates in Indonesia continue to rise.
42%
want a minimalist home design
Safe location is key feature; younger cohorts want minimalism for space
Eating habits
▪ The pandemic has sharpened consumers’ focus on improving their diets as they try to boost their immunity. 72% of
survey respondents (compared to 58% globally) look for healthy ingredients in the food and drinks they consume,
while 59% (compared to 45% globally) say they closely read the nutrition labels of food and beverages. There has
also been a greater interest in plant-based foods, with 21% of survey respondents trying to reduce their meat
consumption. The interest in plant-based options has even penetrated fast food, a segment not traditionally known
for its healthy offerings: in 2021, Burger King Indonesia introduced its Plant-Based Whopper while McDonald’s
Indonesia is set to launch its new McPlant Burger.
▪ In line with the pandemic-inspired growth in demand for home-delivered meals, cloud kitchens (aka ghost kitchens)
are increasingly capturing consumers’ attention, especially in urban areas. Delivery services Grab and Gojek were
early adopters of the cloud kitchen model, but they have recently been joined by numerous local start-ups all trying
to stake a claim in the expanding home delivery segment. According to our survey, 54% of respondents (compared
to 32% globally) say they order food for home delivery at least weekly.
Lower levels of home cooking drive high rates of demand for foodservice
Indonesian consumers are eager to try new and special varieties of food
Younger cohorts less likely to eat meals at the same time each day
Working life
▪ Working from home became the default option for many Indonesians as offices and other workplaces were closed
during lockdown. 74% of survey respondents (compared to 53% globally) said they work from home at least weekly,
and 45% expect to work from home in future. This includes 55% of Generation X; 48% of this cohort also want jobs
that allow for a strong work-life balance.
▪ The pandemic exposed widespread skill shortages among many Indonesian workers and that has prompted many
employers to commit to programmes that would raise their workers’ skills, particularly their technical skills, as they
return to their workplaces. Millennial workers, in particular, appear eager to take on the upskill/reskill challenge:
24% of Indonesian millennials say it is a priority at work to receive good training; 29% say it is important to work for
an innovative company; and 27% say it is a priority to have challenging work.
▪ Indonesians tend to be entrepreneurial and that is reflected in the widespread informal economy and the numerous
micro, small and medium enterprises (MSMEs) that serve as the country’s economic backbone. 46% of survey
respondents (compared to 28% globally) say they expect to be self-employed in future and 43% (compared to 27%
globally) say they expect to start their own company in future.
High salaries are key but health and safety also critical for middle cohorts
Sustainable living
▪ Indonesians are very aware of sustainability issues. In particular, residents of the tropical island nation are
concerned about the risks of rising sea levels, extensive flooding and extreme heat events. 64% of survey
respondents say they are worried about climate change and, in response, 79% (compared to 67% globally) say they
try to have a positive impact on the environment through their everyday actions.
▪ Although a growing number of Indonesians are looking for ways to curb their reliance on single-use plastics, they
are finding it difficult. According to a recent report from the Indonesian Institute of Sciences, plastic waste resulting
from e-commerce nearly doubled during the pandemic as online shopping surged. According to our survey, 73% of
respondents (compared to 61% globally) now say they are trying to reduce their use of plastics. Similarly, 57% say
they recycle items, including plastic waste, although waste management remains inadequate to meet the country’s
sustainability needs.
▪ Most Indonesians recognise the value of conscious consumerism as a response to their environmental concerns, but
the large proportion of low-income households in the country means that it is challenging to put the concept into
practice. Regardless, 40% of respondents say that buying eco- or ethically-conscious products makes them feel
good. At the same time, 28% say they buy products and services from purpose-driven brands/companies.
High percentage are trying to have a more positive impact on the environment
Leisure habits
▪ Although pandemic-related restrictions have made in-store shopping more challenging, many Indonesians still enjoy
the shopping experience: 47% of survey respondents say they go shopping for leisure and 35% say they like to
browse in stores even if they do not need to buy anything. In particular, 39% of respondents say they like visiting
shopping centres. After months of closure, in late 2021 shopping centres began reopening to vaccinated shoppers.
▪ After enduring a tough and unanticipated late wave of the virus over the 2021 summer, many Indonesians continue
to slowly emerge from their homes and some are even looking to immediately make up lost time and go on holiday,
with local destinations such as Bali and Lombok particularly popular among adventurous domestic tourists. Leisure
travel has always been attractive to the growing number of middle-class Indonesians: according to our survey, 29%
of both Indonesian millennials and Generation X say they expect to increase their spending on travel/holidays in
future.
▪ In line with their global counterparts, the growing number of middle-class Indonesians, particularly younger ones,
have increasingly spent their leisure time seeking to acquire experiences, often documenting and sharing events and
adventures on social media. Indeed, 74% of survey respondents (compared to 57% globally) say it is important to
spend money on experiences.
Spending time outdoors, relaxing with family most important after safety
▪ Generally, the public healthcare system, while improving, continues to struggle to provide Indonesians with the level
of coverage they would like, particularly in light of consumers being required to pay insurance premiums for
healthcare services. According to our survey, 42% of respondents (compared to 25% globally) say they expect their
medical costs to increase in future. This included 45% of Generation X.
▪ Following a preventative healthcare approach, many Indonesians are turning to dietary supplements/vitamins to
boost their immunity to COVID-19 and to generally improve their health. In addition, according to recent reports,
many COVID-19 patients in hospital are being advised by dieticians to take vitamins, in particular vitamins C and B
complex. Multivitamins and zinc are also widely recommended. According to our survey, 67% of respondents
(compared to 52% globally) say they take health supplements/vitamins at least weekly.
▪ Many tech-savvy younger consumers are turning to mobile devices for healthcare support: 41% of Indonesian
millennials say they already use mobile apps to track their health/fitness. Similarly, 24% of millennials say they own
health tracking/fitness wearables. The Ministry of Health’s standalone track and trace app, PeduliLindungi (“care and
protect”), is set to be integrated into numerous delivery, ride-hailing and other commercial apps, expanding
geographic coverage and massively boosting user numbers.
Percentage using massage for stress reduction higher than global average
Shopping habits
▪ E-commerce, already well established, was boosted during the pandemic in line with the diminished opportunities
of consumers to shop in-store. 41% of survey respondents say they shop online while at home at least weekly.
Indonesians enjoy shopping online using their mobile phones: 41% say they buy items/services using their mobile
phones at least weekly.
▪ Mobile-savvy consumers have made their phones integral to their in-store shopping experiences. 42% of survey
respondents (compared to 31% globally) say they use their phones at least weekly to compare prices while in store.
33% say they value product information, comparisons and reviews being at their fingertips when using their phones.
Similarly, 48% say they make in-store mobile payments at least weekly.
▪ The retail landscape in Indonesia is varied, ranging from shopping centres and other modern retail venues to small
neighbourhood warungs that sell a limited selection of groceries. During the pandemic, among the most common
preferences of consumers, regardless of format preference, was the desire to shop locally. According to our survey,
33% of respondents now say they try to shop in locally-owned stores, while 33% say they try to purchase locally-
sourced products and services. Similarly, many consumers still shop in their local traditional markets.
36%
want products with easy-to-understand labels
Generation X more motivated to shop in-store as they can see/try before buying
Best prices, free delivery and flexibility biggest motivators to shop online
All generations are primarily motivated to shop online for best prices
Technology
▪ Tech-savvy Indonesians are big users of social media. Indeed, 86% of millennials and 81% of Generation X say they
visit/update social networking sites on their mobile phones at least weekly. 51% of Indonesian respondents
(compared to 41% globally) say it is important to cultivate their personal brands online and manage others’
perceptions of them; this includes 57% of millennials. However, only 20% of respondents say they freely share their
personal information online. In addition to engaging with friends and family, social media users in Indonesia are
increasingly interacting with companies/brands: 55% of respondents (compared to 37% globally) say they “follow” or
“like” companies’ social media feeds or posts.
▪ Although most Indonesians own smartphones, they tend to lag behind their global counterparts when it comes to
owning many of the other types of digital devices. For example, only 28% of respondents (compared to 42% globally)
say they own tablets with full capabilities and only 9% own in-home virtual assistant devices. On the other hand,
more in line with their global counterparts, 21% say they own smartwatches. It is likely that as the number of
middle-class households continues to rise in future, the ownership rate of digital devices will rise in tandem. 35% of
respondents say they intend to increase their spending on new technology in future.