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Early Childhood Education in Jakarta - Market Research

Key Insight

1. The strong economic growth in Indonesia will create great opportunity and there will be a significant middle class population growth in Indonesia that have escaped the poverty line. This is also supported by consumer expenditure growth of CAGR 6% from 2015 to 2020. This favorable economic condition has strong correlation with the incremental participation rate in Indonesian Early Childhood Education
2. Gen Z, people born between 1997 and 2012 whose ages are 11 to 26 years old mostly think that the ideal marriage age would be 26 to 30 years old, this shift might be due to the enhancement in career. This mindset might also affect the future family planning and these generations may get a better income before starting family and raise a child thus when this generations have more financial resources, the chance for them to put their children in a good place for education will tend to be higher.
3. Refer to data from Worldbank, Public Expenditure on Childcare and Pre-primary Education and Total Public Expenditure on Early Childhood Education and Care in Indonesia relatively very low compared to other developed countries. This factor can be a major driver for private institutions to replace the role of government in providing good early childhood education thus the market is very attractive. 
4. Each incremental 1% of participation rate in early childhood education will generate around USD 300 million incremental revenue nationally. Thus, to enhance market penetration in this industry will be a very attractive strategy.
5. Bintaro Jaya is a planned community that is constantly evolving and expanding. The developers, PT Jaya Real Property, Tbk., have a long-term vision for the area and are committed to making it a vibrant and sustainable community. Future development will be supported by:
The development of the Botanica District, a new mixed-use development that will include residential, commercial, and lifestyle spaces.
The expansion of the Bintaro Jaya Integrated Transit Hub (JBI), which will provide better connections to Jakarta and other parts of the Greater Jakarta area.
The development will attract new families to live in Bintaro area and start to live their to the fullest.

Objective
Key objective of this preliminary research is to:
1. Get a better understanding of the current needs and preferences of parents in Bintaro for early childhood education.
2. Understand and assess the current demand for early childhood education services in Bintaro.
3. Analyze the competitive landscape for early childhood education in Bintaro
4. Develop a preliminary profile of the target market for early childhood education in Bintaro
5. Identify emerging trends in early childhood education.
6. Derive an estimate of Total Addressable Market of early childhood education in Bintaro.



Methodology
We are collecting data from secondary research and information available on the internet and combine our findings with our own professional judgement and analysis based on industry data trends. We processed all the information that we gathered to derive output of this market research.

Indonesia Future Outlook
Indonesian Economic
Three decades of robust economic growth have greatly reduced poverty rates in Indonesia. The country’s GDP growth rate has averaged 5 percent per year since 1990, with a significant acceleration following the Asian financial crisis in the late 1990s (Figure 1.1). Favorable international commodity markets, a large and youthful population, and a solid macroeconomic policy framework supported growth during the period . 
While Indonesia’s expansion has moderated in recent years as the tailwinds generated by commodity prices and global financing conditions have turned to headwinds, the average annual GDP growth rate has remained above 5 percent since 2014. GDP per capita increased six-fold between 1990 and 2018, contributing to a sharp decline in the extreme poverty rate, which fell from 57 percent to less than 6 percent over the period.

However, many Indonesians remain vulnerable to shocks, and most households that have escaped poverty still lack the economic security that marks a sustainable transition into the middle class. Despite important gains in poverty reduction, around 20 percent of Indonesians remain close to the poverty line and could be pushed back below it by a financial or nonfinancial shock (Figure 1.2). While the share of Indonesians who have sufficient disposable income to be considered part of the middle class is increasing, it remains below 25 percent of the total population.
The small size of the middle class and the persistent economic vulnerability of a large share of the population have negative implications for health, education, and other aspects of household wellbeing.










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