UNSGSA Calls for Corporate Action on Employee Financial Health

Addressing the Hidden Issue of Financial Stress

Ratu Máxima, Special Adviser to the UN Secretary-General on Financial Health, highlighted the critical need for companies to address employees' financial well-being during the National Financial Health Event in Jakarta. Máxima emphasized that financial stress is a significant yet often hidden issue affecting worker performance and business sustainability. The UNSGSA data presented showed that financial pressures are widespread, with six out of ten Indonesians stating their income is insufficient to cover basic living expenses.

The Financial Reality for Indonesian Households

The statistics presented revealed that the average Indonesian household allocates 75% of their income to daily consumption and 11% towards debt repayment, leaving merely 14% for savings. This financial strain is further complicated by the increasing reliance on financial products such as Buy Now, Pay Later (BNPL) services and payday loans. Half of BNPL users are young adults aged 18-35, while six out of ten credit card users only pay the minimum balance, and three out of ten admit to having excessive debt.

Business Benefits of Supporting Financial Wellness

Máxima stressed that employers must create a supportive ecosystem that promotes financial literacy and provides access to safe, affordable financial products. Such initiatives not only benefit employees but also contribute to business stability and economic growth. By normalizing discussions about financial health, companies can enhance awareness, build confidence, and foster healthier financial behaviors among their workforce.

Key Statistics:

• 6/10 Indonesians can't cover basic needs
• 75% income goes to daily consumption
• 11% income for debt repayment
• 14% income remains for savings
• 50% BNPL users are aged 18-35

The event highlighted the urgent need for corporate engagement in improving employee financial health as a pathway to enhanced productivity and business resilience.