Fresh from a significant research expedition in Indonesia, Tassos Stassopoulos of Trinetra Investment Management shares his insights with Jonathan Ramsay on the changing dynamics of the Indonesian market, focusing particularly on the influential Gen Z demographic. This research is crucial as Indonesia stands poised to capitalise on its demographic dividend, potentially positioning itself as the "next India" in terms of explosive economic growth.

During their in-depth six-day trip, Tassos and his team applied a meticulous "4i process" — usually thats Information, Insights, Ideas and Implication but in this case were can add Intense periods of Information gathering, Individual Interviews, and Immersive interactions. This all combines to add to understanding the nuanced behaviours shaping Indonesia’s future. A key goal was to assess whether Indonesia is at an economic "takeoff stage," driven by the attitudes and values of its youth.

A pivotal observation by the team was the marked shift in values among Indonesian youth. Moving away from the fatalistic attitudes shaped by socio-economic status and religious expectations prevalent in older generations, today's young Indonesians show an inclination towards personal achievements and meritocratic success. This significant cultural shift signals potential transformative changes in consumer markets and broader investment landscapes.

Tassos shares an example of how a woman in Jakarta is cutting costs by switching from popular ride-hailing apps to more affordable newcomers. This behaviour indicates a potential competitive threat to established market leaders such as Gojek and Grab, paving the way for the emergence of challengers like Maxim and Indrive in the mobility sector.

Beyond individual consumer behaviours, the team also explored the macroeconomic context of Indonesia. This included assessing the broader economic environment, policy frameworks, and potential sectors for investment

Acting as our "sentinels" on the look out for  macroeconomic shifts and micro-level changes, this is a good example of how we use managers to help us get below the surface and ahead of red curve and in this respect, Trineatra are particularly valuable. Back to their process though, the team’s ongoing analysis aims to convert observations into investable hypotheses. These are rigorously tested to ensure they withstand market pressures, thereby guiding strategic investment decisions. In the coming weeks, we will have further discussions with Tassos and his team as they continue to distil their findings into actionable insights and potential portfolio ideas.