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Market Research in Indonesia

Market Overview of Indonesia

With more than 17,000 islands, Indonesia has a land area of 1.9 million km² and a population of 273.5 million. More than 50% of the population lives on Java island, and they also have more than 300 ethnic and linguistic groups.

Economy

About 45% of Indonesia’s GDP comes from the services sector, and 41% from the industrial sector. However, about 30% of the workforce is employed in the agriculture sector. GDP growth has been stable at about 5.0% over the past few years.

Consumers

Indonesians are faithful to brands and often have a preferred brand in mind when entering stores to buy products such as personal care items.

However, they have concerns about e-commerce due to distrust in product quality and descriptions, as well as fears of online scams.

Market Research in Indonesia

Indonesia consists of many islands, where each island has different races or tribes with their own unique language. Although Bahasa Indonesia is the national language, there is actually a large population who speak Javanese. When conducting market research, you can consider looking for a moderator who at least knows both Bahasa Indonesia and Javanese. However, Bahasa Indonesia and Bahasa Malaysia should not be confused as there are differences between the two languages.

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