Spending on the Rise, Savings Strain

Writing in The Jakarta Post , BCG’s Tushar Agarwal and Lilian Cheong examine how inflation and shifting consumer priorities are reshaping spending behavior in Indonesia. BCG research reveals that consumers are cutting back on everyday indulgences in favor of big-ticket items and turning to short-term financing to maintain cash flow, with 33% expecting to spend more due to rising prices. “There is clear demand for financing tools that enable increased cashflow, flexibility, and low-barrier payment options among Indonesians to manage necessary expenses,” they write.