The Rise of Sari Roti

Abstract

The discussion of consumption patterns in Indonesia often hinges on the much-touted burgeoning consumer class and the rapid pace of development in the country. Indonesia will be the fifth largest economy in the world by 2030. This middle class will have an average income of US$11,300 per household by then. McKinsey estimates that 50 million people will join this group every year, and 2020 will see 86 million consumers fuelling the economy. Consumption as a percentage of GDP was at 55% in 2016, according to the World Bank, and the number is expected to grow.