Economist Unveils Anomalies in Indonesia's Consumption: Rise in Savings and Weakening Middle Class

Amid economic changes, Jakarta’s UPN Veteran University economist and public policy expert Achmad Nur Hidayat voices concern over the Bank Indonesia’s consumer survey data, which shows a reduction in consumption and an increase in savings in Indonesia. While the upper middle class accumulates savings, part of the middle class is falling into a more vulnerable position. The survey for December 2025 showed that the share of income allocated for consumption fell to 74.3%, the lowest level since May 2025, while the savings proportion increased to 14.9%. These changes occur amidst high consumer confidence levels. This situation raises concerns because the middle class serves as both the economic engine and the social stabilizer. The economist warns that weakening this segment may impact the country’s economic stability. To stabilize, it is necessary not only to maintain consumption levels but also to provide conditions for safe savings. Suggestions include promoting productive investments and using savings to support sustainable development, such as investments in small and medium enterprises.