Indonesian Households Face Savings Challenges Amid Consumption Recovery

Declining Savings Trend

Indonesian households are experiencing difficulties in maintaining their savings despite a gradual improvement in consumer spending power. According to Bank Indonesia data, the average household savings per account in the banking system decreased to Rp 6.02 million in November 2025, down from Rp 6.48 million in the same period the previous year ¹

. This decline indicates that households are struggling to maintain their savings as economic conditions evolve.

Shift in Household Financial Behavior

The composition of household finances has shown significant changes. Data from Bank Indonesia reveals that the proportion of consumption expenditure increased to 74.57% in November 2025 from 74.42% in November 2024 ²

. Concurrently, the share of savings in household finances dropped to 14.44% in November 2025, down from 15.1% in the same month of the previous year ²

Source 2

https://keuangan.kontan.co.id/news/masyarakat-masih-susah-menabung-meski-daya-beli-mulai-pulih

. This shift suggests that while consumer spending is recovering, households are finding it challenging to allocate funds towards savings.

Economic Implications

The decline in household savings rates amid rising consumption could have broader economic implications. Lower savings rates may impact the banking sector's ability to mobilize deposits, potentially affecting lending capabilities and overall financial stability. The trend also highlights the need for financial education and potentially more attractive savings products to encourage households to maintain their savings.