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Local Products Gain Momentum in Indonesia

Local products¹ in Indonesia are experiencing significant growth with promising prospects ahead. During HARBOLNAS 2024, local products dominated by contributing 52% of total transactions, amounting to Rp16.1 trillion, up 31% compared to the previous year². With this positive momentum, local products are solidifying their position and are projected to continue growing in the coming years.

Jakpat conducted a survey to reveal local product trends in 2025. The report, involving 1,394 respondents, also highlights consumer behavior in purchasing local products, including the types and brands chosen. In general, 95% of respondents use local products, and 4 out of 5 plan to buy them in the future. Meanwhile, 3 out of 5 have been using local products for more than three years.

Consumer Behavior in Using Local Products

Affordability (72%) is the main reason people choose local products, especially among Gen X. Emotional and practical factors also play a role, such as pride in domestic products (56%) and easy availability (56%).

“The main reason consumers choose local products is still dominated by price affordability. However, pride and the desire to contribute to the domestic economy also play a major role. On the other hand, doubts about quality and excessive claims remain a challenge, highlighting the importance of transparency and innovation for local products to gain greater trust,” said Farida Hasna, Lead Researcher at Jakpat.

E-commerce (68%) is the most common place to buy local products, especially among women. Minimarkets also play an important role, used by almost half of the respondents. This reflects a hybrid shopping habit, combining digital convenience with physical comfort.

Another finding from Jakpat shows that local products are mostly purchased during daily shopping (65%), especially by Millennials and Gen X. Promotions and discounts strongly attract Gen Z (65%) and Gen X (66%) buyers.

Local Products in Use

Most people use local food and beverage products (79%), followed by fashion (65%) and beauty (59%). Women dominate the use of beauty and personal care products (80%), while men dominate digital services (35%) and sports-related products (34%). These patterns show significant gender-based differences in local product preferences.

Specifically for local food consumers, instant noodles are the most widely consumed local food product, with Indomie being the most popular brand. Women dominate most categories, especially seasonings and spices (77%), while men consume more coffee and powdered drinks (71%).

In terms of medicine and health products, 77% of respondents use over-the-counter (OTC) drugs, particularly Gen X. Meanwhile, 35% of Gen Z claim to consume herbal medicines (jamu). One in three people spends IDR 20,000–50,000 on a purchase in this category.

In the household items and local electronics category, cleaning products such as dishwashing liquid, disinfectant, and floor cleaners are the most commonly used. This is followed by cooking and kitchen equipment (67%) and home cleaning tools (62%), with women having higher usage rates than men.

According to Hasna, local products have now penetrated almost every aspect of consumer life, from basic needs such as food to lifestyle needs such as fashion and digital services. “Each category has different demographic and generational dominance, showing how local brands have managed to fill specific needs across generations and genders,” she concluded.

1. Goods or services that are created, owned, and marketed by businesses within a specific country or region. ↩︎
2. https://indonesia.go.id/kategori/editorial/8889/konsumsi-masyarakat-masih-tinggi-produk-lokal-paling-laku-di-harbolnas ↩︎