Katadata Insight Center (KIC) has observed a notable shift in consumer behavior among Indonesia’s middle class, driven by a recent decline in the size of this economic group alongside a growing number of aspiring middle class households.

Speaking at the Trendmaker Summit 2025 in Bali on Friday, November 28, 2025 Executive Director of KIC Fakhridho Susilo said this shift requires special attention due to its significant impact on Indonesia’s economic trajectory.

“Demographic changes strongly influence the economy, markets, and Indonesia’s growth outlook,” he said.

More selective

Despite economic pressure, the middle class is becoming more resilient and adaptive in its consumption choices. Rather than prioritizing low prices, consumers are increasingly focused on product value ‒ including durability, reliability, and added benefits.

“Value is prioritized over cheap pricing, even though cost still matters,” Fakhridho cited.

Transparency and honesty from sellers are also becoming key expectations, along with greater attention to social responsibility. This is reflected in stronger support for products from micro, small, and medium enterprises (MSMEs).

The middle class is also showing rising concern for sustainability. Many are integrating environmentally friendly behaviors into their daily lives, such as:

● Bringing reusable water bottles;

● Sorting household waste;

● Using public transportation.

KIC believes these shifting consumer priorities will shape Indonesia’s market direction in the years ahead. With more mature value-based decision-making, the middle class is expected to strengthen economic growth that is more adaptive, inclusive, and environmentally conscious.