Yesterday I had dinner with Aiko Kurasawa. She is a professor at the University of Tokyo. She is a member of a Japanese research group. They made some interesting observations of the consumption in Indonesia. Their observations are bundled in a book.
I am far from finishing this book, but I realized that the research done by these Japanese authors is 10 years old. However, so far I must say that the observations they made are crystal clear.
E.g. regarding the 'pseudo' middle class and consumption: "
Economic factors are not the only determinants of the pseudo-middle class. What is more important, and even vital, is that they imitate middle class lifestyle and have strong aspirations for climbing the social hierarchy. Aiko Kurasawa says: With those understandings, I propose that it is this large 'pseudo' middle class that supports the enormous and ever increasing consumption in Indonesia, which in turn, animates the Indonesian economy in general. The desire of members of the pseudo middle class to get status symbols goods is very strong (because of the gengsi culture) and they force themselves so buy those things despite their financial inability."
E.g. regarding the 'disneyfication of perumahans' and mass consumption
.The majority of respondents in a survey done in 2011 reveals that 91% prefers a landed house and only 1% hopes to live in apartments. Viewed against the already for mentioned gengsi culture, "
It is easy to see that a house can function as one of the clearest index to show the social status of the inhabitant. One can distinguish oneself from lower class by where he lives, and what kind of house he lives in."
... There are many ongoing new-satellite-city projects in the Bodetabek area. Today, the life in the new satellite cities embodies a very typical or representative way of life in contemporary Jakarta metropolitan area. The biggest project, BSD city, sold more than 28,000 houses on 1500 ha of land on the east side of the Cisadane River. ...Sinar Mas Group is the largest player in the satellite-city development business in Jabodetabek. The most decisive momentum for the group was the development of Kota Wisata in Cileungsi, Bogor (however, people usually mention Kota Wisata as a project in the Cibubur area). The first characteristic of Kota Wisata is that the whole project is comprised of discrete clusters (gated communities). ... Asia economic crisis, widespread urban riots in 1998 all gave strong sense of insecurity for people so that Kota Wisata's gated community got very enthusiastic response from consumers. ... The second characteristic of Kota Wisata is that each cluster is given a certain theme of specific foreign city or country: Monaco, Madrid, Paris, Kyoto. ...The third characteristic of Kota Wisata is that it combined themed cluster housing, commercial property (Kampung Cina) and amusement park (Fantasy Island) to maximize synergy effect. ... The influence of Kota Wisata on other projects has been immense. ... Many other developers have tried to imitate. E.e. Citra Raya, a satellite city developed by Ciputra Group in Cikupa. ...Moreover, Dinar Mas Group has greatly expanded its business since 2000, acquiring projects as BSD City and Grand Wisata. ... theming a cluster or grand cluster is one of the marketing gimmicks for developers. ...
I think this research / book can be updated, regarding the time frame (2010- 2011) of their research.
1.
The gengsi culture causes not only lower class to imitate middle class lifestyle. What is said about the "pseudo middle class" could also apply to the "
upper middle class". They want to belong to the
upper class (gengsi apply to them too), buying luxery goods, like luxery cars, playing golf etc, but actually cannot really afford that lifestyle of the upper class. I think an update of the research is an opportunity, including the rise of services like Go Food, Go Car, Tokopedia, Sayurbox, ... Go Pay, Grab, Easycash, OK bank, ... meaning the easy access to buy goods online and pay per month, week (cicilan).
2.
Update with recent real estate developments, like PIK and Swan City (clusters Lavon 1, 2 and 3).
I am in the process of reading the book I will come back with more later on.