Indonesian Middle Class Will Reach 141 Million By 2020

Global management consulting firm the Boston Consulting Group is projecting the Indonesian middle class — which currently stands at 74 million — may reach 141 million people in 2020, one of its executives said on Wednesday. Vaishali Rastogi, BCG partner and managing director, told a press conference in Jakarta that the country's middle class would almost double to 141 million by 2020 and added that the nation's buying power would also rise rapidly. "The size of the middle class on Java is projected to [grow], and when compared to the population of Thailand, the middle class on Java will be much bigger," Rastogi said. The consumption trends will also shift from essentials to products that offer facilities and comforts, such as longer lasting household appliances, electronics, cars and financial services. "We conducted this research on seven islands, 33 provinces, 99 cities and 393 districts. This research also analyzed consumer spending data in several main categories, including food and appliances, for September 2012," Rastogi said. She said that most middle class consumers tended to buy things that could improve their quality of life. For example, a total of 63 percent of those questioned said that they were enthusiastic about buying family products such as DVD players and flat screen TVs as a way to save trips to movie theaters. Eddy Tamboto, BCG Jakarta partner and managing director, said that the rising Indonesian middle class needed to be balanced with a more equitable spread of enterprises in the region.  He added that BCG is projecting that in 2020, middle class spending will be much higher, with each family spending at least Rp 2 million for its monthly household needs. "The middle class in Indonesia will continue to rise, and this ... can turn Indonesia into Asia's next big opportunity" Eddy said. A rising middle class leads to a stronger and more stable economy, especially since the Indonesian economy is based on strong domestic consumption. source http://www.thejakartaglobe.com/home/indonesian-middle-class-will-reach-141-million-by-2020-bcg/577668