<h4 style="text-align: justify;">As you'd expect in a country where the average age is 28, the typical Indonesian internet user is a young, tech-savvy city dweller. So it's a surprise to learn that the most rapid growth in internet users is currently coming from the 30+ age groups and the secondary cities. We believe this is great, great news for tech investors. Because it means the market is rapidly moving away from its past obsession with social media chatting and simple free entertainment, and moving towards e-commerce, paid online content and B2B services.</h4>
<h5 style="text-align: justify;">Moving away from a user base which was simply too young</h5>
<p style="text-align: justify;">Five years ago, Indonesia's mobile and internet markets were dominated by the under-25s. Energetic and talkative, they made Indonesia the social media capital of the world. The problem was, they didn't spend much money online, in large part because most under-25s don't have much money to spend.</p>
<p style="text-align: justify;">Wind the clock forwards and the picture is changing rapidly. The fastest-growing age group in terms of internet adoption over the past three years has been the 35-39 year-olds. The second fastest-growing group was the 30-34 year-olds. Wealthier, busier, and with businesses to run and families to manage, they place more value on the convenience that the internet offers and have a higher ability to pay for services. The rapid rise of startups such as home food delivery and e-commerce verticals is a direct result of this user base trend.</p>
<img alt="Page - Market data user profiles age groups chart 4" src="http://redwingconsulting.com/wp-content/uploads/Page-Market-data-user-profiles-age-groups-chart-4.png" width="650" height="371" />
<p style="text-align: justify;">This spreading-out of the user base is evident in other areas too. While penetration is highest in the A social class, the fastest growth is currently occurring in the C social class, and the ABC social classes are now fairly evenly represented in the overall user base. From a gender perspective, more men use the internet each month than women, but the higher growth rates are among the female age groups.</p>

<h5 style="text-align: justify;">Two clear usage segments emerging</h5>
<p style="text-align: justify;">As the composition of the user base evolves, two clear usage segments are emerging. One is older (25+) and wealthier, with a primary focus on gaining utility from the internet - we call these the Utility Users. The other is younger with less disposable income, and has a primary focus on finding entertainment on the internet - we've named them the Entertainment Users.</p>
<p style="text-align: justify;">Here is one example of how the two segments clearly differ in their behaviour:</p>
<img alt="Page - Market data user profiles usage location chart 2" src="http://redwingconsulting.com/wp-content/uploads/Page-Market-data-user-profiles-usage-location-chart-2.png" width="650" height="262" />
<p style="text-align: justify;">The older, wealthier Utility Users primarily use the internet from home, and secondarily from their office. The Entertainment Users are very different, and still make heavy use of <em>Wartels</em> (public internet cafes). Beyond this graph, further statistics show that the Utility Users also access the internet through different devices: primarily desktops and laptops, then smartphones. The Entertainment Users mainly access the internet through feature phones.</p>
<a title="User trends" href="http://redwingconsulting.com/market-data/user-trends/" target="_blank">[read the full piece here]</a>