INDONESIA’S MIDDLE CLASS IS GROWING AND SPENDING, BECOMING A MAGNET FOR INVESTORS
Good news for Indonesia’s middle class. Foreign and local investors are increasingly looking to diversify, echoing a shift to second-tier cities that have been seen in other major emerging markets like Brazil, China, and India. This is a very positive improvement for Indonesia, especially since major cities like Jakarta and the island of Java have been rising economically in their middle class. The second-tier cities in Indonesia are increasing their spending, alerting investors that a country in its history which has suffered difficult financial times, is finally developing a burgeoning middle-class. Spending has increased and investors are taking note. Foreign investors are looking to diversify.
Makassar is the provincial capital of South Sulawesi, Indonesia, and the largest city on Sulawesi Island. In the sixteenth century, MakaAccording to formerssar was the dominant trading center of eastern Indonesia, and soon became one of the largest cities in island Southeast Asia. The
Makassarese kings maintained a policy of free trade, insisting on the right of any visitor to do business in the city, and rejecting the attempts of the Dutch to establish a monopoly over the city. Today, Makassar is one of the fastest growing cities in Indonesia. In very recent years, growth in Makassar has taken off, thanks to consumer demand and a boom in commodities. This apparent upswing in Southeast Asia’s economy showed a consistent growth of an average of 6 percent in the last five years. Today there is an expected growth in urban Indonesia of 53 percent, a significant increase compared to previous years.
According to former Vice-President Jusuf Kalla, when comparing Makassar with other cities in Indonesia, the majority of investments have been by local Sulawesi businessmen. Not only are Indonesians taking more risks financially, but other rural Indonesian cities are now rapidly following suit.
Good news for Indonesia’s middle class. Foreign and local investors are increasingly looking to diversify, echoing a shift to second-tier cities that have been seen in other major emerging markets like Brazil, China, and India. This is a very positive improvement for Indonesia, especially since major cities like Jakarta and the island of Java have been rising economically in their middle class. The second-tier cities in Indonesia are increasing their spending, alerting investors that a country in its history which has suffered difficult financial times, is finally developing a burgeoning middle-class. Spending has increased and investors are taking note. Foreign investors are looking to diversify.UInvestor Perspective
So what does this mean for investors looking to venture out to Indonesia? With many Indonesians moving to urban areas and the increase of spending spiking exponentially, one could predict growth in independent entrepreneurship and, thus, an increased need for crowdfunding both for urban and agricultural projects.
Let the successful funding of the Palm Oil Project in Indonesia be the beginning of many more investment opportunities for uinvestors in helping develop economy of this beautiful country and marking a profit in return!
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