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ASEAN Consumer Sentiment Study 2025 (Indonesia): Withstanding economic pressures through savvy saving
Financial attitudes in Indonesia, Southeast Asia’s 'quiet giant', have improved slightly in 2025 due to savvier spending and saving. The overall sentiment in the country is less anxious than the rest of the region as consumer habits shifted to accommodate trends in inflation, climate change, and unemployment.
However, this outlook has been tempered by environmental disasters that have wiped out lives, homes, and livelihoods. As a result, Indonesian consumers are taking a more cautious approach to future planning, according to UOB’s ASEAN Consumer Sentiment Study 2025. The survey covered 1,000 respondents, 31 per cent of whom are Gen Z1, and reveals shifting priorities and wide attitude disparities.
Consumer confidence drops slightly, but remains on par with ASEAN
Although overall sentiment in the region improved slightly year-on-year, consumer sentiment in Indonesia declined by 3 percentage points, from 58 per cent to 55 per cent.
Figure 1: Indonesia’s consumer sentiment score is on par with the regional average
Slightly more than half of Indonesian consumers remain optimistic about the country’s economic, political, and social stability. The year 2025 marked President Prabowo Subianto’s first full year in office after ten years of Joko Widodo. The new president has launched new initiatives that are still gaining traction and awareness, such as the Free Nutritious Meal programme and the Danantara sovereign fund.
Across the region, 77 per cent of respondents noted that finances were worrying — but in Indonesia, this number was 4 percentage points lower. When it comes to concerns regarding work, health and wellbeing, and the surrounding environment, sentiments in Indonesia match the regional average.
How is climate change affecting Indonesians?
Environmental risk dominates public concern in Indonesia. Some 61 per cent of respondents indicated that they were worried about climate change, natural disasters, and pollution, resulting in it being the top issue in Indonesia, with 30 per cent saying they were very worried — the highest share in the region. In December 2025, large-scale flash floods affected the island of Sumatra, leaving communities isolated without electricity and basic necessities. The disaster caused almost 1,500 deaths and left thousands without access to food or shelter.
Figure 2: Top concerns expressed by Indonesian consumers
Views on inflation and household expenses are more polarised. Fourteen per cent said they were not at all worried about inflation driving up living costs, a higher share than in other parts of the region. Yet at the same time, almost a quarter of respondents, or 24 per cent, said they were highly worried about rising expenses — also the highest regional figure.
Concerns about longer-term financial security appear more muted. Compared with other countries, a larger portion of Indonesians are not at all worried about declines in savings or wealth, long-term financial commitments, and whether they have sufficient insurance. Anxiety around saving capacity has eased but remains elevated. In 2024, 49 per cent of respondents cited the ability to put money aside as their primary concern. In 2025, this fell by 12 percentage points to 37 per cent — still higher than the regional average of 34 per cent.
Indonesian consumers are more inclined to seek information on investments. Additionally, seven in ten respondents said they are comfortable borrowing money if it helps them achieve their financial goals, and prefer to enjoy their money now rather than worrying too much in the future.
How are Indonesians managing their finances and dealing with inflation?
Indonesian consumers report a high level of confidence in their ability to manage personal finances — a pattern also observed in Vietnam. Compared with last year, the share of consumers responding to inflation by cutting back on non-essential purchases fell by 10 percentage points, while the proportion actively seeking offers or discounts when shopping declined by 11 percentage points. Together, these shifts indicate a perceived improvement in financial condition from last year.
Figure 3: How Indonesians are dealing with inflation
Digital financial services underpin daily transactions. E-wallet usage is particularly widespread, with 74 per cent of respondents reporting use in the past year, a level well above that seen in other countries. Forty-one per cent of consumers use mobile banking via dedicated banking applications, while 44 per cent make payments via e-commerce platforms. Finally, about 9 in 10 respondents in Indonesia reported that they used scan-to-pay for transactions at least once a week.
Figure 4: Top payment methods in Indonesia
Use of web-based internet banking and payments via mobile wallets, credit, or debit cards remains lower than the regional average, suggesting a strong preference for app-based financial services. Interest in digital currencies and Buy Now, Pay Later (BNPL) services is also relatively high. Indonesian respondents count credit and debit cards, overseas money transfers, web-based internet banking, and Real-Time Payment (RTP) platforms as among their least favoured payment methods.
Savvier future planning in response to economic concerns
Household saving behaviour in Indonesia continues to strengthen. Saving rates have continued to improve, with 34 per cent of respondents setting aside around 11 to 20 per cent of their income each month, up 3 percentage points from last year. In aggregate, three in four respondents now save more than 10 per cent of their monthly income, up 5 percentage points from 2024. Financial resilience has also improved, as a larger proportion of consumers report holding emergency funds sufficient to cover at least seven months of expenses.
Figure 5: Improvement in savings behaviour among Indonesian consumers
Insurance coverage presents a more mixed picture. Indonesia continues to record a higher proportion of consumers with healthcare coverage than the rest of the region due to the high reach of the state-provided Badan Penyelenggara Jaminan Sosial (BPJS) insurance programme. However, the share of respondents with basic health insurance fell by 15 per cent year-on-year, possibly related to changes in the patient classification system and increased unemployment in 2025.
In contrast, participation in other forms of protection, including death and disability cover, term life insurance, and life insurance, increased. The auto insurance penetration rate is among the lowest in the region, with only 26 per cent of consumers holding coverage.
Investment behaviour has shifted alongside changing macroeconomic conditions, with more respondents allocating at least 10 per cent of their income to investments. Retirement expectations remain relatively early, with most consumers anticipating retirement between the ages of 51 and 60.
Only 18 per cent expect an improvement in their lifestyle after retirement, while the majority aim to maintain their current living standards. Although most respondents have a reasonable sense of the savings required for a comfortable retirement, around one in two feel that retirement remains some distance away.
Preparations beyond working life have also advanced as respondents paid more attention to legacy planning. Compared with last year, more Indonesian consumers report having made a will, designated a power of attorney, and put an advance care plan in place.
Figure 6: More Indonesians are engaging in legacy planning
To see the actual numbers behind this commentary, download the full report. To find out how we can help businesses expand within ASEAN and beyond, please get in touch.
About this study
The ASEAN Consumer Sentiment Study (ACSS) is UOB’s regional flagship study that analyses consumer trends and sentiment across five countries (Singapore, Malaysia, Thailand, Indonesia, and Vietnam).
Now in its sixth year, the 2025 survey was conducted in June and captures responses from 5,000 consumers — 1,000 from each country. At UOB, we help businesses navigate the dynamic landscape of the ASEAN region to unlock its full potential.
Key topics covered include:
- Consumer sentiment
- Shifts in spending and financial preferences
- Digital and payment behaviours
- Financial preparedness
Important notice and disclaimers
This article shall not be copied or relied upon by any person for whatever purpose. This article is given on a general basis without obligation and is strictly for information only. The information contained in this article is based on certain assumptions, information and conditions available as at the date of the article and may be subject to change at any time without notice. You should consult your own professional advisers about the issues discussed in this article. Nothing in this article constitutes accounting, legal, regulatory, tax or other advice. This article is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this article, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the views expressed and the information in this article.
