January 14, 2026 | 09:50 pm
TEMPO.CO, Jakarta - The latest survey results from Bank Indonesia reveal a trend where the public is allocating a larger portion of their income to savings while simultaneously decreasing consumption. Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, acknowledged this shift, noting that citizens are becoming increasingly cautious with their finances in response to global economic volatility and geopolitical uncertainties.
However, Susiwijono maintained that at the macro level, the shift remains manageable. He asserted that overall consumption continues to grow, bolstered by robust investment and government spending, alongside existing programs designed to safeguard purchasing power and stimulate economic activity.
"Spending indicators show that consumption activity remains resilient, as reflected in the Mandiri Spending Index, which rose by 4.4 percent to 352.2 at the end of December 2025," Susiwijono told Tempo on Wednesday, January 14, 2026. He further claimed that public mobility spending saw a significant uptick during the 2026 Christmas and New Year holiday season.
According to the Bank Indonesia survey, the share of income earmarked for savings reached 14.9 percent in December 2025, an increase from the 14.4 percent recorded the previous month. Conversely, the portion of income dedicated to consumption dipped from 74.6 percent to 74.3 percent.
In response to these figures, Susiwijono stated that the government remains committed to balancing public consumption with the need to strengthen income and savings capacity. This effort includes the distribution of People’s Business Loans (KUR) and targeted support for micro, small, and medium enterprises (MSMEs), as well as the labor force.
"With stronger income levels, consumption is maintained even as savings grow, allowing the banking sector to finance investments and drive future economic expansion," he added.
Ronny P. Sasmita, an economist from the Strategic and Economics Action Institution, views the rising allocation for savings as a sign of heightened financial awareness. He described the behavior as a rational response to economic instability, suggesting that in the long run, this trend could enhance household resilience and mitigate vulnerability to external shocks.
However, Ronny warned of the immediate macroeconomic downsides. Because household consumption accounts for more than half of Indonesia's Gross Domestic Product (GDP), any slowdown in spending effectively dampens the nation's primary growth engine. "When consumption slows, the main engine of economic growth is suppressed," Ronny explained, noting that such conditions often lead to weakened demand and a slowdown in corporate recruitment.
Ronny also pointed out that while increased savings can fortify banking liquidity, they present a risk if they are not converted into credit distribution and investment. He explained that in a climate of weak demand, banks tend to become overly cautious while businesses grow reluctant to expand. Consequently, savings may pool in banks without being funneled into productive activities.
"If this persists, the increase in savings could potentially hinder economic growth rather than accelerating it," Ronny cautioned.
To mitigate these risks, Ronny suggested that the government must focus on sustaining the purchasing power of the middle class and creating incentives for savings to flow back into productive investments. Possible interventions include MSME credit stimuli or policies aimed at reducing business risks.
"Ultimately, the challenge is not the high volume of savings itself, but how to effectively convert that capital back into productive investments to drive sustainable economic growth," Ronny concluded.
Read: IBC: Indonesia's Economic Growth Remains Stuck at 5%
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