INTERNATIONAL ENTERPRISE SINGAPORE IE Insights Vol. 13/ Nov 2013 Indonesia’s Consumer Sector: Tapping the Consumer Dollar in Food and Retail Rapid urbanisation, rising income levels, favourable demographic patterns and changing lifestyle trends are just some of the factors that make a convincing case for investing into Indonesia’s consumer sector. This sector is projected to be worth some S$1.38 trillion by 2030 as Indonesia’s consuming class triples to 135 million to become the world’s largest middle class after China and India. IE Singapore highlights investment opportunities in the food and retail industries, and explores ways that Singapore companies can participate in this exciting sector. By LEE Wei Hsien Southeast Asia Group
[email protected] Contents 03 25 28 Summary Strategies Market Outlook - Growing Singapore companies’ - Dynamic Investment Climate 05 footprints in Indonesia - Economic Potential of the ASEAN Consumerism: • Partnership for success: Economic Community (AEC) The Catalyst to Indonesia’s Partnering strong Indonesian - Indonesia’s long-term outlook Growing Economy companies to scale up remains sound • Mergers: A market entry mode 08 for Singapore companies Rise of Indonesia’s Regional • Working with Big-Box retailers/ Hubs/ Cities of Consumerism e-commerce companies to penetrate Indonesia’s 11 consumer market The New Face of Indonesia’s • OEM Manufacturing: Urbanites Navigating rising cost pressures 13 - Reaching out to the Business Opportunities in Indonesian consumer F&B and Retail Industries • Raising awareness of - F&B Singapore F&B and retail • Food service products in Indonesia • Food manufacturing • Localise product innovation to - Retail suit local taste and preferences • Market size and potential • Advertise to reach out to the • Mode of market entry Indonesian consumer Disclaimer While every effort is made to ensure that the information in this document is accurate, the information is provided by IE Singapore to you without any representation or warranty.