Not only Indonesia’s population is large and economy is growing rapidly, the demographic trends are also in the country’s favor. There are 240 million people out of which around 75 million are middle or above class, whose monthly household spend is IDR 2 million or above (i.e. around USD 180 p.m.+ or USD 2200 + per annum). And this class is expected to increase by 8 to 9 million every year (McKinsey report).
More than 60% of its residents are in their principal working years i.e. between 20-65 years. And another 27% is below 15 years i.e. low dependency ratio and large incoming workforce.
Granular look - half of 75 million reside in the five most-populous provinces in Java. 12 cities with more than 1 million of middle and above class, but this is expected to disperse and by 2020, the number of cities with 1million + middle class is expected to be 22, as per McKinsey. Key emerging cities are - Palembang, Makassar, Batam, Semarang, Pekanbaru, and Padang)
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