Design market opportunities in Indonesia

As the largest economy in Southeast Asia and the 14th largest in the world, Indonesia stands as a promising market for Finnish design and fashion. Finland enjoys a positive image in Indonesia, linked to qualities like high-quality education and overall reputation for excellence.

 

The middle class in Indonesia is experiencing rapid growth, with over 50 million people being considered part of the middle class in 2023. This demographic has become the fastest-growing group in the country, offering significant market potential for Finnish businesses. By 2030, an estimated 90 million Indonesians will have enough income to buy more than just necessities, marking the third-largest increase globally, after China and India. The majority of the population resides in urban areas, with a notable concentration of 13 million middle-class individuals in Greater Jakarta alone. The middle class has strongly increasing purchasing power and the private consumption plays a crucial role in powering Indonesia’s economy. Jakarta also holds the record for having the highest number of shopping malls globally and the residents exhibit great enthusiasm for shopping.

Indonesians could be interested in Finnish brands for their Nordic design, uniqueness and playfulness. People in Indonesia are not afraid to embrace brands and especially in large cities, there is a high level of trend awareness. Indonesians are open to global brands and trends, actively using social media to embrace new ones. Social media usage ranks among the highest globally, presenting a strong opportunity to enhance brand awareness. Successful collaborations, such as Marimekko and Ikea, highlight the potential and interest in Nordic design and fashion. 

In the face of challenges brought about by rapid urbanization, there is growing interest for a simpler, minimalist design. Nordic-inspired minimalism offers stress-free living and practicality, which can resonate with the desires of urban residents in. Although awareness of materials and sustainability is increasing, it has not become a major factor influencing consumer choices. The demand is expected to increase as more people become aware of the impacts of climate change. 

To establish a foothold in Indonesia, collaboration with local partners is essential, as they provide valuable information and assistance in navigating the vast Indonesian market landscape. Companies with prior experience in launching in Asia are particularly valued. Brand awareness holds great significance in Indonesia and consumers are described as brand-orientated. 

With strategic partnerships, unique offerings and understanding the local preferences, Finnish fashion brands can tap into this dynamic and rapidly growing market. 

TARGET SECTORS:
•   Finnish design and fashion companies 

For more information, contact: 
Silja Kanerva, Embassy of Finland, Jakarta. 
Priscillia Tanumihardja, Business Finland, Jakarta. 

Text: Aino Sadeniemi, Intern at the Embassy of Finland, Jakarta