Durability over discounts: Indonesia’s middle class is spending smarter
Indonesia’s middle class — long regarded as the country’s economic stabilizer — is entering a new era of more thoughtful spending
JAKARTA, Indonesia (MNTV) — Indonesia’s middle class — long regarded as the country’s economic stabilizer — is entering a new era of more thoughtful spending, reports Indonesia Business Post.
This shift was at the heart of the Trend Maker Summit 2025, where Katadata Indonesia and its partners unveiled research showing that consumers are prioritizing durability, usefulness, and value over cheap prices, signaling a maturing market shaped by inflation, digital fatigue, and changing aspirations.
Katadata COO Ade Wahjudi said the event brought together business leaders, creators, policymakers, and thinkers to exchange ideas and uncover emerging opportunities.
“We’re here to celebrate those already leading innovation while preparing for what lies ahead. Let’s use this moment to broaden perspectives, strengthen creativity, and build connections that spark meaningful progress. Together, we can ensure Indonesian innovation not only stays relevant today but defines future trends,” Ade said.
OMG Consulting founder Yoris Sebastian highlighted the need for Indonesia to learn from global consumer trends and leverage them to deliver meaningful innovation. He said the summit aims to bring private companies, state-owned firms, brands, and government institutions to the same table, because collaboration, he emphasized, drives real impact.
“One good example is QRIS. Bank Indonesia worked with state-owned and private banks to develop an integrated QR payment system. It became highly successful because it expanded digital payment access in a country with relatively low credit card penetration.
QRIS scaled rapidly not because BI acted alone, but because the entire financial ecosystem moved together,” Yoris said.
As part of the summit, Katadata Insight Center (KIC) presented new research on the consumption behavior of Indonesia’s middle class, conducted in collaboration with OMG Consulting and Trendwatching.
The findings captured shifting priorities and decision-making patterns amid evolving economic and lifestyle dynamics.
The study shows Indonesia’s middle-class consumers are no longer driven primarily by low prices. Instead, they prioritize durability, usefulness, and added value.
According to the report, Indonesia Middle Class in Motion: Smarter Choice, Wiser Spending, 65.7 percent of respondents prefer long-lasting product quality over cheaper prices.
KIC Executive Director Fakhridho Susilo said 55.7 pc prioritize functionality, while 52.7 pc consider additional benefits. “These figures show usefulness outweighs pure price appeal. SES B stands out across all categories, indicating a stronger emphasis on functionality, environmental considerations, and value for money. Value today is defined by what lasts and what works, usefulness and durability shape perceived worth,” Fakhridho said.
Fakhridho also added that the study is part of the Katadata Indonesia Middle Class Insights (KIMCI), set for launch in April 2026. The survey covered 463 respondents aged 17–59 across Java, Kalimantan, Sulawesi, and other regions, representing middle-class consumers with monthly per capita spending of Rp 2 million ($230) to Rp 10 million ($600).
Fakhridho said that Indonesia’s middle class, roughly two-thirds of the population, remains the country’s economic engine and a key driver of lifestyle shifts.
“Over the past year, they’ve faced inflation, digital overload, and shifting aspirations, pushing them to reassess what truly matters: value, balance, and meaning. As they redefine how they live, shop, and aspire, they’re also reshaping what Indonesia’s future will look like,” he said.
He noted that middle-class choices today, what they value, how they adapt to technology, and how they balance sustainability with convenience, offer early signals of the country’s future economic and cultural direction.
The research also found that consumers value brand transparency over image, with 59 pc of respondents selecting honesty and openness as the strongest indicators of trust. Another 57 pc prioritize products that genuinely meet their needs.
“Purpose-driven traits such as caring about social or environmental issues (37 pc) and supporting local communities (37 pc) deepen emotional connection. Higher-income groups place greater weight on practical solutions, environmental responsibility, and inspiring narratives.
Meaning comes from brands that are honest, useful, and truly contributive, not those relying on image alone,” Fakhridho said.
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