Indonesia Consumer Behavior Thread (Consumption Side of GDP)

[Indos]

Not Government Spending: Purbaya Reveals the Real Engine of Indonesia's Economic Growth​

By Chandra Dwi Pranata

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Purbaya Yudhi Sadewa


Jakarta, CNBC Indonesia – Finance Minister Purbaya Yudhi Sadewa has explained what is truly driving Indonesia's economic growth, emphasizing that government spending is not the country's primary growth engine.

According to Purbaya, government expenditure contributes only around 7.7% to the Indonesian economy, while the vast majority of economic activity is driven by the private sector.

"If we look at it, the government's contribution to the economy through spending is only about 7.7%. The rest comes from the private sector. So if the private sector is not moving, it is almost impossible for us to achieve 5.61% economic growth in the first quarter of 2026," Purbaya said during CNBC Indonesia's Economic Update 2026, as quoted on Tuesday (June 23, 2026).

Government and Household Spending Growing Together​

Purbaya said President Prabowo Subianto's economic strategy is to ensure that both government spending and household spending expand simultaneously.

"This shows that the President's strategy to strengthen the economy through both the government and the private sector is working well. Government spending is increasing, and household spending is also growing significantly."

He explained that household consumption makes by far the largest contribution to Indonesia's economic growth.

"If we multiply each component by its share of the economy, household consumption—which accounts for more than 55% of GDP—contributes about 2.9 percentage points to the overall 5.6% growth figure. Investment contributes 1.9 percentage points, while government spending contributes only 1.34 percentage points."

Two Key Indicators Remain Strong​

Purbaya said two important indicators suggest that Indonesia's economy remains resilient:

• Automobile sales
• Cement sales

Car sales have increased by 55%, while motorcycle sales have grown 28.1%.

Meanwhile, fuel consumption for both transportation and industry also recorded strong growth during March:

• Retail fuel consumption: +11.9%
• Industrial fuel consumption: +17%
• Total fuel consumption: +13%

Electricity Demand Also Rising​

Purbaya added that electricity sales have continued to increase sharply, indicating stronger consumption by households, businesses, and industries as economic activity expands.

Overall electricity sales grew by 19%.

Cement Consumption Surges​

Domestic cement consumption—which supports infrastructure and construction projects—also recorded exceptionally strong growth.

According to Purbaya, cement consumption increased by 35.6% in April 2026.

"The figures are indeed higher than before, but that doesn't mean this is the only engine of growth. Overall, the data still indicate that household purchasing power remains quite strong."

He concluded that the available indicators suggest Indonesia's domestic demand continues to support solid economic growth, with the private sector and household consumption remaining the principal drivers, while government spending plays a relatively smaller role.

Bukan Belanja Pemerintah, Purbaya Ungkap Motor Pertumbuhan Ekonomi RI

Menteri Keuangan (Menkeu) Purbaya Yudhi Sadewa membeberkan motor penggerak pertumbuhan ekonomi Indonesia

www.cnbcindonesia.com

 

[Indos]

LPS Chairman Says Indonesians Are No Longer Drawing Down Savings​

Senin, 27 Jul 2026

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JAKARTA – Lembaga Penjamin Simpanan (LPS) Chairman Anggito Abimanyu said bank deposits across all customer segments continue to grow, indicating that Indonesians are no longer relying on their savings to support day-to-day consumption.

Speaking at the Presidential Palace in Jakarta on Monday (July 27, 2026), Anggito said deposits have increased across all account size categories, from balances below IDR 100 million to those exceeding IDR 5 billion.

"All deposit categories continue to grow, from accounts below IDR 100 million to those above IDR 5 billion. Every segment is showing positive growth," Anggito said.

According to Anggito, the trend suggests that household purchasing power has begun to recover, allowing people to resume saving rather than drawing down their bank deposits.

"This shows that funds flowing into the banking system are supporting economic activity, particularly in the real sector," he said.

Earlier, LPS reported that deposits of less than IDR 100 million increased 4.95% year-on-year as of May 2026, accelerating from 3.43% growth recorded at the end of December 2025.

Doddy Zulverdi, LPS Commissioner for Deposit Insurance Programs and Bank Resolution, said the data do not support claims that Indonesians are depleting their savings.

"Based on these figures, we do not see evidence of people drawing down their savings. Deposits below IDR 100 million continue to grow, and growth has actually improved compared with the end of 2025," Doddy said during a virtual press conference on June 25, 2026.

LPS also reported that Indonesia's banking sector remained resilient.

As of May 2026, third-party funds (DPK) in the banking system increased 13.47% year-on-year, supported by positive growth across all deposit categories.

Deposits exceeding IDR 5 billion also continued to expand at a double-digit pace, rising 21.45% year-on-year through May 2026, compared with 22.76% growth at the end of December 2025.

"The key takeaway is that every deposit segment—from balances below IDR 100 million, between IDR 100 million and IDR 1 billion, IDR 1 billion to IDR 2 billion, IDR 2 billion to IDR 5 billion, and above IDR 5 billion—continues to record positive growth," Doddy said.

Bos LPS Klaim Masyarakat Tidak Lagi Makan Tabungan

Ketua Dewan Komisioner Lembaga Penjamin Simpanan (LPS) Anggito Abimanyu mengatakan jumlah simpanan masyarakat di bank terus tumbuh.

finance.detik.com

 

[Indos]

Excellent Results! Unilever Indonesia Reports Rp16.9 Trillion in Net Sales in the First Half of 2026​

Khoirul Anam
28 July 2026

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Shopping Mall in South Jakarta

Jakarta, CNBC Indonesia – PT Unilever Indonesia Tbk (UNVR) recorded positive growth during the first half of 2026. This marks the company's fourth consecutive quarter of growth, reflecting solid progress in strengthening its business fundamentals while advancing its long-term growth objectives.

During the first half of 2026, Unilever Indonesia recorded 7.1% growth in domestic sales, driven by strong underlying volume growth of 7.3%. Net sales from continuing operations reached Rp16.9 trillion, representing 7.1% year-on-year growth.

Meanwhile, net profit from continuing operations (excluding the SariWangi tea business) increased 10.2% year-on-year to Rp2.1 trillion.

The company posted a gross margin from continuing operations of 46.6%, down 168 basis points compared with the previous year. Excluding transformation costs, the gross margin stood at 47.7%.

Meanwhile, the pre-tax profit margin from continuing operations remained stable at 15.7%. Excluding transformation costs, the pre-tax profit margin increased by 45 basis points to 16.7% compared with the previous year.

President Director of Unilever Indonesia, Benjie Yap, said that the company's first-half 2026 performance reflects the positive results of its efforts to strengthen business fundamentals.

"We achieved positive growth in both sales and profit, supported by strong volume growth, reflecting improved execution in the marketplace. These results further reinforce our confidence that our strategy is delivering tangible outcomes and that the business continues to move in the right direction," he said in a written statement on Tuesday (July 28, 2026).

He added:

"Amid a dynamic business environment and our continued investments to transform the business and strengthen long-term competitiveness, we remain focused on delivering consistent, high-quality growth while creating sustainable value for all stakeholders."

Benjie explained that the company is executing its strategic priorities through three main pillars—Categories, Sales Channels, and Costs—which reinforce one another to drive high-quality long-term growth.

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Three Strategic Priorities of Unilever Indonesia​

1. Categories: Building Consumer Demand at Scale Through Strong Brands and Innovation​

Unilever Indonesia continues to strengthen its competitiveness through superior innovation and social-first demand creation, aiming to increase consumer preference across its entire brand portfolio.

Guided by its "Desire at Scale" approach, the company enhances brand strength through differentiation based on science, aesthetics, and sensory experiences.

"At the same time, we are accelerating consumer engagement through creator collaborations and culturally relevant partnerships, increasing brand visibility and relevance, particularly among younger consumers," Benjie explained.

These efforts resulted in broad-based growth across the business, with 18 of the company's 24 brands recording growth during the first half of 2026.

More importantly, the company's core businesses that had previously faced challenges have now returned to growth, while high-growth segments continue to deliver strong double-digit growth.

"Overall, these results further strengthen our confidence that the business recovery continues to gain positive momentum across more parts of our portfolio. With our core businesses returning to growth and high-growth segments continuing to expand, we are building stronger and more balanced growth momentum," he added.

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2. Sales Channels: Strong Execution at Every Consumer Touchpoint​

Unilever Indonesia also continued strengthening its route-to-market capabilities and execution across its various sales channels, contributing to 7.1% domestic sales growth during the first half of 2026.

This performance was supported by growth across all major channels, reflecting improved execution, better product availability, and stronger shopper engagement.

In the General Trade channel, growth was driven by continued progress under the company's "More Stores" and "Better Stores" initiatives, which expanded market reach, improved product availability, and strengthened execution at points of sale.

Meanwhile, the Modern Trade channel delivered strong performance through better execution and effective category activation, increasing shopper engagement, in-store visibility, and conversion.

The Health & Beauty and eCommerce channels also continued to show positive momentum, supported by a differentiated product portfolio, social-first demand creation strategies, and increasingly robust end-to-end capabilities.

"Most importantly, these results demonstrate that all of our growth drivers are working consistently across every sales channel. By strengthening our route-to-market capabilities, creating demand more effectively, and managing our portfolio more precisely, we continue to build broader, higher-quality, and more sustainable growth," he said.

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3. Costs: Driving Growth Through Discipline and Productivity​

On the cost side, Unilever Indonesia continued improving productivity and strengthening cost discipline across the business, enabling continued investment to support growth while maintaining profitability.

Through a combination of measured pricing adjustments, productivity initiatives, and disciplined cost management, the company maintained business resilience despite ongoing cost pressures while continuing to improve margins.

"At the same time, we remain focused on ensuring that every investment delivers optimal impact by allocating resources more effectively. This is achieved through continued investment in priority brands and accelerated development of digital capabilities, strengthening brand equity, improving execution effectiveness, and supporting sustainable long-term growth," Benjie explained.

Looking ahead, he emphasized that Unilever Indonesia remains committed to driving competitive growth through disciplined execution of its Category, Sales Channel, and Cost strategies.

Despite continued market uncertainty, the company remains optimistic that it can further strengthen business performance through increasingly solid fundamentals, a strong brand portfolio, more effective market execution, and an ongoing focus on productivity.

"Supported by our Hungry to Win culture, we believe we can further strengthen our competitiveness, accelerate high-quality growth, and create long-term value for both our shareholders and all stakeholders," Benjie concluded.

Top! UNVR Cetak Penjualan Bersih Rp16,9 T di Semester I-2026

PT Unilever Indonesia mencatat pertumbuhan positif di semester I-2026 dengan penjualan domestik tumbuh 7,1%.

www.cnbcindonesia.com

 

[Indos]

Indonesia's Sportswear Market Projected to Hit $3.3 Billion by 2030​

Erfan Maruf
August 3, 2026 | 6:28 pm


A pedestrian walks past a display of photos of international soccer players outside a Nike store on June 10, 2026, in Santa Monica, California. (/Getty Images via AFP/Justin Sullivan)


Jakarta. Indonesia's sportswear market is projected to grow to Rp 58.6 trillion ($3.3 billion) by 2030, presenting significant opportunities for domestic manufacturers -- particularly small and medium-sized enterprises -- to expand their market share at home and abroad, the Industry Ministry said on Monday.

Deputy Industry Minister Faisol Riza cited a Euromonitor International report published in February 2026 showing that Indonesia's sportswear market reached Rp 38.5 trillion in 2025, up 8% from the previous year.

"The strong growth reflects the enormous potential of Indonesia's sportswear market, and it is an opportunity that domestic industries should seize," Faisol said while opening the Indonesia Sport and Active Wear (ISAW) and Cosmetic Day 2026 exhibition in Jakarta.

He said the expanding market offers both opportunities and challenges for local manufacturers, adding that the exhibition aims to strengthen the competitiveness of small and medium-sized enterprises so they can capitalize on rising demand.

Faisol pointed to the success of local sportswear brand Speed, which has been selected as the official apparel supplier for Indonesia's national volleyball team, as evidence that domestic brands are increasingly able to compete with international rivals.

"We want to see more Indonesian brands become leaders in the domestic market while expanding their presence globally," he said.

The ministry's optimism is also supported by Indonesia's improving export performance.

According to data from the Central Statistics Agency, apparel exports rose 2.7% to $7.27 billion in 2025 from $7.08 billion a year earlier.

Exports of sporting goods increased 12% to $306.3 million, while cosmetics exports climbed 13.7% to $473.8 million during the same period.

Faisol said the stronger export performance demonstrates the growing competitiveness of Indonesia's apparel, sporting goods, and cosmetics industries in international markets, underscoring the need to capitalize on the momentum by expanding exports and increasing domestic value-added production.

https://jakartaglobe.id/business/indonesias-sportswear-market-projected-to-hit-33-billion-by-2030

 

[Indos]

LPS Rejects 'Eating Into Savings' Narrative, Deposits Below IDR 100 Million Continue to Grow​

4 Agustus 2026

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JAKARTA – Indonesia's Deposit Insurance Corporation (LPS) has rejected claims that Indonesians are broadly "eating into their savings" to meet daily living expenses, citing continued growth across all deposit categories.

LPS Chairman Anggito Abimanyu said the institution does not conduct studies on how household consumption affects savings. Instead, LPS monitors aggregate deposit growth as part of its supervisory and deposit insurance responsibilities.

"We do not conduct studies on the impact of consumption. What we monitor is the overall development of bank deposits," Anggito said.

As of June 2026, LPS reported that deposits below IDR 100 million increased 5.16% year-on-year, while deposits below IDR 5 million rose 7.36%. Meanwhile, deposits exceeding IDR 5 billion grew 15.44% compared with the same period last year.

According to LPS, these figures indicate that bank deposits continue to expand across all segments and do not support claims that Indonesians are broadly depleting their savings.

LPS Bantah Fenomena "Makan Tabungan", Simpanan di Bawah Rp 100 Juta Masih Tumbuh

LPS menyebut seluruh kelompok simpanan masih tumbuh hingga Juni 2026. Simpanan di bawah Rp 100 juta naik 5,16 persen secara tahunan.

money.kompas.com

 

[Indos]

BI Survey: Gen Z Most Optimistic About Indonesia’s Economy​

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JAKARTA, KOMPAS.com – Generation Z emerged as the age group with the highest level of optimism about Indonesia’s economic conditions in July 2026, according to Bank Indonesia’s latest Consumer Survey.

Among all age groups surveyed, respondents aged 20–30 recorded the highest Consumer Confidence Index (CCI) at 122.9, well above the optimism threshold of 100.

Bank Indonesia uses a balance score methodology, where an index above 100 indicates optimism and a reading below 100 indicates pessimism.

The findings show that Gen Z’s optimism was not limited to perceptions of the broader economy. Respondents aged 20–30 also recorded relatively strong readings for current income, job availability, purchases of durable goods, and expectations for economic conditions over the next six months.

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Gen Z Records Highest Consumer Confidence​

Overall consumer confidence in Indonesia remained positive in July 2026. Bank Indonesia recorded a national CCI of 116.8, although this was slightly lower than 117.8 in June.

Confidence was supported by two main components. The Current Economic Conditions Index (CECI) stood at 107.9, while the Consumer Expectations Index (CEI) reached 125.7. Both remained above the 100-point optimism threshold.

By age group, respondents aged 20–30 recorded the highest CCI at 122.9, indicating that younger consumers had the most positive view of economic conditions compared with other age groups.

The same pattern was evident in assessments of current income.

Indonesia’s overall Current Income Index stood at 118.5, while respondents aged 20–30 recorded the highest reading at 124.9.

This suggests that younger respondents were not only optimistic about the economy in general but also had relatively strong perceptions of their current income conditions.

Younger Consumers Remain Optimistic About Employment​

Gen Z’s optimism was also reflected in perceptions of employment opportunities.

Bank Indonesia said perceptions of current job availability remained optimistic among respondents aged 20–40, while respondents aged over 41 were in pessimistic territory.

The national Job Availability Index stood at 101.1 in July, down slightly from 101.8 in June but still above the 100-point threshold.

Younger consumers were also more optimistic about purchases of durable goods.

The Durable Goods Purchase Index for respondents aged 20–30 reached 109.5, the highest among all age groups. Respondents aged 31–40 followed with an index of 106.0.

Gen Z Also Most Optimistic About the Future​

The strongest difference between age groups emerged when respondents were asked about economic conditions six months ahead.

The national Consumer Expectations Index reached 125.7 in July 2026, slightly below 126.4 in June.

Bank Indonesia said the strong expectations were supported by optimism regarding future income, job availability, and business activity. The respective indexes stood at 133.6, 123.1, and 120.4.

Once again, respondents aged 20–30 recorded the highest expectations for future income.

Their Income Expectations Index reached 139.0, compared with 137.7 among respondents aged 31–40.

A reading of 139.0 indicates particularly strong confidence that income conditions will improve over the next six months.

Optimism about future job availability also remained relatively strong among younger respondents. Bank Indonesia recorded an improvement in the job availability expectations index among those aged 20–40, while other age groups recorded declines.

What Does It Mean?​

Bank Indonesia’s data suggest that Indonesians aged 20–30 viewed their economic circumstances relatively positively, both in terms of current conditions and the outlook ahead.

The pattern of optimism was consistent across several indicators.

Gen Z respondents recorded the highest perception of current income, the highest durable goods purchase index, and remained among the groups optimistic about employment opportunities.

At the same time, the 20–30 age group was again the most optimistic about income prospects over the next six months.

This means Gen Z’s optimism in the Bank Indonesia survey was not based solely on one CCI figure. It appeared across several aspects directly related to everyday economic life: income, employment, consumption, and expectations for future economic conditions.

Bank Indonesia concluded that consumer confidence remained solid in July 2026.

Optimistic, but Still Saving​

The survey also showed that consumer optimism did not mean households were spending all of their income.

The average proportion of income used for consumption stood at 72.7% in July, relatively stable compared with 73.0% in June 2026.

The share of income used for installment and debt payments rose slightly from 10.0% to 10.5%.

Meanwhile, the proportion of income allocated to savings stood at 16.8%, only slightly below 17.0% in the previous month.

The data indicate that, despite continued optimism, households as a whole continued to divide their income among consumption, debt repayments, and savings.

Bank Indonesia conducts its Consumer Survey every month among approximately 4,600 households in 18 cities, using a stratified random sampling method.

Therefore, the Consumer Confidence Index reflects sentiment among the surveyed respondents and should not be interpreted as a direct measure of the income or welfare of Indonesia’s entire population.

For Gen Z, however, the 122.9 CCI reading in July 2026 shows that respondents aged 20–30 were the most confident age group in assessing Indonesia’s economic conditions during the period.

And with their six-month Income Expectations Index reaching 139.0, that optimism appears to extend beyond current conditions to expectations of what lies ahead.

Survei BI: Gen Z Jadi Kelompok Paling Optimistis soal Ekonomi

Generasi Z atau Gen Z menjadi kelompok usia yang paling optimistis dalam memandang kondisi ekonomi Indonesia pada Juli 2026.

money.kompas.com