More Indonesian consumers choose smart spending as they remain cautiously optimistic about the economy

Jakarta, 2 December 2025 – More Indonesian consumers are becoming more cautious with their spending, driven by growing concerns around household expenses and long-term financial commitments. According to the latest UOB ASEAN Consumer Sentiment Study (ACSS) 2025, this prudent approach has deepened compared to last year, even as many continue to spend on meaningful lifestyle experiences. The newly launched UOB ASEAN Consumer Sentiment Index (the Index) also recorded Indonesia’s overall sentiments at 55, down from 58 last year, reflecting cautious optimism amid ongoing cost pressures

The Index is derived from six key indicators measuring consumers’ perceptions of current and future economic conditions and their personal finances. On personal finances, the sub-index comprising consumers sentiments on future personal finances, concerns over long-term financial commitments, rising household expenses and pay cuts has declined six-points to 53 compared to last year. As for macroenvironment, nearly three in five Indonesians felt positive about the current economy and the same proportion remained optimistic about future economic conditions, a slight improvement from last year’s 55 per cent and 56 per cent respectively. This shows that while consumers are feeling the pressure of higher costs, they remain confident about the country’s macroenvironment outlook.

Mrs Cristina Teh Tan, Consumer Banking Director, UOB Indonesia, said, “Understanding our customers remains at the heart of what we do. Indonesian consumers today are more mindful when it comes to spending. They want value, but also want to enjoy meaningful experiences. At UOB, we are committed to helping customers make smart financial decisions by offering practical benefits, including cashback on daily spending, dining deals, travel rewards, and ”flexible instalment plans. Our aim is to help customers manage expenses wisely while still enjoying the things that matter in life.”

Smart spending shapes daily purchasing decisions
Many Indonesians, especially Gen X, are tightening their spending habits. The study found that 59 per cent of respondents felt that inflation has a negative impact on their household purchasing power, prompting them to prioritise essentials while being more selective about discretionary items.

This can be seen from the top changes in shopping habits among consumers over the past year, which included close to half of the respondents buying more products on discount and 43 per cent buying more multi-functional products to maximise value. This caution is driven by rising concerns, 48 per cent of consumers are worried about their financial commitments in 2025, up from 39 per cent in 2024, highlighting a growing focus on financial prudence.

Despite this caution, lifestyle and experiential spending continue to rise. Indonesian consumers showed sustained interest in experiential spending, including travel for vacations, fine dining, concerts, events and festivals, with 34 per cent reporting increased expenditure on these categories in 2025, up from 20 per cent last year. Younger consumers showed strong preference for such experiences, with 85 per cent of Gen Zs viewing this as essential to their wellbeing, reflecting a balance between mindful spending and personal enjoyment.

Financial habits strengthen as digital payment grows
Financial awareness is also improving among Indonesian consumers. Three in four respondents saved more than 10 per cent of their monthly income, up from 70 per cent in 2024, showing continued improvement in personal financial discipline. Nearly nine in 10 have emergency funds, of which 31 per cent said they have enough emergency funds to cover expenses for at least seven months. Confidence in personal money management remains strong, with nine out of 10 Indonesians considering themselves capable of managing their personal finances effectively.

Digital payments continue to dominate daily transactions. ACSS 2025 showed that QR scan-to-pay, e-wallets and mobile banking apps are among the most preferred payment methods among Indonesian consumers, likely driven by convenience, ease of use and ability to track expenses digitally. The growing use of digital payments supports the strengthening of financial habits, enabling Indonesians to monitor and manage their daily expenses more effectively.

The full UOB ACSS report is available on the UOB Indonesia’s website at go.uob.com/acss2025-id