'Now Showing': Indonesian cinema sector ripe for growth

FROM motorcycles to entertainment, Indonesians are spending big. Backed by strong gross domestic product growth and a stable macroeconomic climate, Indonesia has recorded above 5 per cent growth over the past decade.

That compound growth has fuelled the rise of a middle class that is in the midst of a consumption spree. Some 50 million Indonesians today make up the middle class in a country with an annual GDP per capita of US$10,585 - and with money in their pockets, they are looking to spend.

No doubt, some of the sheen on Indonesia's economy has come off recently as the country sees slower growth this year. Car manufacturers are complaining of a 30 per cent drop in sales for the first six months of the year while motorcycle sales have dropped even faster.