Update COVID-19 in Indonesia: 1,542,516 confirmed infections, 41,977 deaths (6 April 2021)
14 April 2021 (closed)
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Indonesian listed retail and consumer goods companies continued to record good corporate earnings in the first quarter of 2014. Amid robust economic growth - although having slowed to 5.21 percent in Q1-2014 - Indonesians' purchasing power is growing and the middle class is expanding rapidly. Not too long ago, the World Bank said that per year seven million people are added to Indonesia's middle class. With more money to spend, these people consume more and more consumer goods such as food, clothes and electronics.
In 2012, the country's middle class numbered around 75 million people of a total population of 240 million (Indonesia is the world's fourth most populous country). Research firms the Boston Consulting Group (BCG) and McKinsey expect that Indonesia's middle class will grow to between 130 and 140 million people by the period 2020-2030. With more money to spend, people's lifestyles change accordingly and thus purchase more (and different) products as well as property to improve one's life.
Household consumption is in fact the most important pillar of economic growth in Southeast Asia's largest economy as household consumption accounts for roughly 56 percent of the country's total economic growth. Despite slowing GDP growth, household consumption grew 5.61 percent in the first quarter of 2014 (year-on-year), partly driven by the April 2014 legislative election. Apart from food products, consumption of non-food products (t-shirts and screen printing) also increased.
Selection of Retail and Consumer Goods Companies' Financial Results Q1-2014:
|Company||Revenue|| Net Profit
|Indofood Sukses Makmur||16,386||12,856||1,373||722|
|Matahari Department Store||2,677||2,385||123||82|
|Matahari Putra Prima||3,126||2,640||51||63|
|Ace Hardware Indonesia||1,075||887||137||93|
¹ in billion IDR rupiah
Source: Investor Daily