Indonesia’s luxury goods market is experiencing robust growth while diversifying beyond traditional consumer segments and retail locations, according to ProSpace Indonesia’s Luxury Market Assessment. The sector grew by 18.7% in 2024, reaching market value of $2.3 billion despite challenging global economic conditions.
Personal luxury goods including fashion, accessories, watches, and jewelry account for 73% of the market, while experiential luxury including fine dining, hotels, and travel represents the fastest-growing segment at 27% annual growth. Domestic luxury spending has strengthened as international travel patterns normalize.
“Indonesia’s luxury market is transitioning from conspicuous consumption patterns toward more sophisticated and personalized luxury experiences,” explains Miranda Hartono, Luxury Retail Specialist at ProSpace. “The demographic profile has expanded significantly beyond the traditional ultra-high-net-worth individuals to include young professionals, entrepreneurs, and the upper-middle class.”
Women now account for 57% of luxury purchases, up from 48% in 2020, with significant growth in self-purchasing rather than gifting occasions. Meanwhile, consumers under 40 represent 52% of luxury shoppers, bringing different preferences and engagement expectations.
Geographic diversification continues with luxury retail expanding beyond Jakarta and Bali to Surabaya, Bandung, and Medan. Meanwhile, e-commerce channels now account for 23% of luxury sales, up from just 7% in 2020, with brands implementing sophisticated digital engagement strategies.
Luxury brands increasingly incorporate Indonesian cultural elements and sustainability practices to resonate with evolving consumer values. Limited editions and exclusive experiences show particular appeal for status-conscious consumers seeking differentiation.
For luxury market insights: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates