Indonesians hopeful about their future financial situations, despite feeling pinch of rising costs

Indonesians hopeful about their future financial situations, despite feeling pinch of rising costs

Some will still restrict spending, with cutbacks most likely to take place across leisure and entertainment, dining and retail sectors   

With Indonesia recording a raised inflation rate of 3.55 per cent in May – the highest since December 2017 – it comes as no surprise that residents have begun to feel the pinch. Latest data from YouGov reveals that although half agree that the cost of living has risen in the past year (53%), majority of them remain hopeful about the situation, with six in ten expecting their personal finances to improve in the next 12 months (66%).

This compares to a fewer one in six who anticipate their financial situations to remain unchanged (17%), and just one in twenty who expect it to worsen (6%).

Across age breaks, Gen Zs are most confident in their future financial situations (69%), while Baby Boomers are significantly more likely to express opposite sentiment and think their situations will worsen (15%).

While mostly hopeful about the future, those who have experienced the effects of rising costs still intend to take measures to cut down on spending. The largest proportion of online Indonesians say they will cut back on hobbies and leisure activities, with one in three saying so (31%).

A quarter would reduce eating out at F&B outlets (26%) and buying clothes, apparels and accessories (25%), while another one in five would cut back on spending on non-essential food items (22%), streaming service subscriptions (22%), F&B takeaways and deliveries (22%) and grooming and wellness services (20%).

Slightly fewer would cut back on overseas holidays (19%), personal care and beauty products (19%) and household electronics (18%).

Methodology:

YouGov RealTime Omnibus provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online in June 2022, with a sample of 2,111 adults in Indonesia (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by gender, age, socioeconomic class, city tier to be representative of the adult online population in Indonesia (18 years or older), and reflect the latest Indonesian Bureau of Statistics (BPS) population estimates. Learn more about YouGov RealTime Omnibus.