Global economic uncertainty and geopolitical tensions continue to influence consumer sentiment across ASEAN. Despite softer purchasing power in several markets, Indonesia continues to strengthen its position as one of the region’s largest and fastest-growing luxury consumer markets.
Indonesia leads luxury goods users’ growth in ASEAN
Indonesia is projected to record one of the strongest growth trends in luxury goods users among ASEAN countries. This reinforces its attractiveness for international luxury brands seeking regional expansion opportunities. The country’s growing base of wealthy consumers continues to support demand for premium brands and luxury retail experiences.
Figure 1: Comparable users in luxury goods among ASEAN countries
Source: Statista Market Insight
Indonesia is expected to record the highest growth of Ultra-High-Net-Worth Individuals (UHNWI) globally. Potential growth could reach 82% by 2031. This expanding high-net-worth segment will further strengthen long-term demand for luxury goods and premium lifestyle products.
Prestige cosmetics and fragrances lead revenue growth
Luxury goods revenue in Indonesia continues to grow across multiple categories, with prestige cosmetics and fragrances leading growth. The category remains the largest contributor to luxury goods revenue, outperforming luxury fashion and leather goods.
Figure 2: Revenue in luxury goods in Indonesia by categories
Source: Statista Market Insight
The strong performance of prestige beauty products reflects rising consumer interest in premium personal care and lifestyle products, alongside increasing brand awareness among high-income consumers. Luxury fashion and leather goods also continue to post steady growth, supported by evolving consumer preferences and stronger appetite for premium retail experiences.
Jakarta prime malls continue to show resilience
While broader economic conditions remain challenging, Jakarta’s retail market continues to show resilience, particularly within the prime shopping mall segment. Based on JLL data, vacancy rates in Jakarta prime malls stood at 4.2% in 1Q26, reflecting healthy leasing activity and sustained tenant demand.
Figure 3: Vacancy rate in prime malls 1Q26
Source: JLL Research, 2026
The low vacancy rate indicates that prime malls continue to attract retailers despite ongoing macroeconomic uncertainty. Several international luxury brands have recently opened their first stores in Indonesia, particularly in Jakarta’s prime retail destinations. This expansion highlights continued confidence in the market and reinforces the role of luxury retail as one of the key drivers supporting mall occupancy performance.
Premiumisation trends support long-term retail potential
Jakarta’s prime malls are well positioned to remain strategic destinations for luxury retailers entering or expanding within Indonesia. As the country’s wealthy consumer segment continues to grow, the market is likely to see further brand entries and sustained demand for premium retail space.
Luxury retail will continue to drive occupancy and leasing performance within Jakarta’s prime shopping mall sector.
More on 'Retail' in 'Indonesia'
- Jakarta’s property market thrives despite global uncertaintyMarch 13, 2025
- Jakarta’s real estate: a peek into 2024December 8, 2023
- Jakarta real estate cautiously confident for 2023March 13, 2023
- A look back at the 2022 Jakarta property marketDecember 16, 2022
- Cautious optimism for Jakarta’s real estateFebruary 18, 2022
