The Truth About Indonesia’s Fitness & Wellness Market

So we've kind of separated that.

But Indonesia, I've heard so much talk over the last five years, I would say, pretty much since the closures.

It's really grown quickly, lots of opportunity.

some brands that you haven't even heard of that have got 20, 30, 50 locations.

And a lot of the time they speak about the population.

300 million automatically means a massive opportunity.

But the penetration rate of people that are actually paying for fitness is still pretty low.

I think it's around about 1%.

So how big an opportunity do you see it is, I guess now, and then over the next five or 10

years? I think the biggest opportunity will only come in five to 10 years.

A massive market or a massive body count does not translate into a massive fitness market.

We know that from developed markets where people talk about 15 to 20% penetration.

And you can't say that 100% of the people want to train at all.

100% of the people will have not access to health clubs because there's villages, there's more rural places.

So let's discount them.

I think the bigger cities have that opportunity in the younger population.

It is not customary so much for the older generation to exercise.

And I do not think that we will reach them at scale.

We have never reached them at scale anywhere in the world, aside maybe from some European countries that are supported by the health care system.

So the opportunity is 16%.

to 40, I believe, where people now are health aware, where they spend time on social media, where the international market and Bali provides the context and the ambition to be fit, to be healthy and to be part of something.

And that will translate in the more urban cities out of Jakarta.

Which are also massive, right? I mean, there's millions of people living there, but we just don't know about these cities.

We don't even know the names of these cities in many ways as international operators.

That's why it's correct what you say.