Study: 68% of Indonesians hopeful amid financial strains, but spending splits by generation

Despite stagnant incomes, rising inflation, and a shifting cost-of-living landscape, optimism in Indonesia has proven surprisingly resilient. According to a new YouGov survey, 68% of Indonesians say they feel either “hopeful” or “optimistic” about the future - a telling snapshot of national sentiment in a year marked by financial belt-tightening.

The survey, conducted between 17-21 April 2025 among 2,067 adults across the archipelago, reveals a population that is simultaneously adjusting to hardship and actively redefining what resilience looks like.

“Many are reevaluating household spending, adjusting their lifestyles, and taking more cautious financial steps - all of which reflect how people are learning to endure while still preparing for the future, even in less-than-ideal conditions,” said Edward Hutasoit, general manager of YouGov Indonesia.

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Half of the respondents say household expenses have climbed, with groceries (34%) and education (25%) topping the list. Notably, older generations - Millennials and Gen X+ - are more likely to report increased spending on core needs such as housing and food.

Gen Z, meanwhile, displays a different set of priorities. They are significantly more likely to have upped their spending on beauty (21%) and fashion (20%), hinting at a lifestyle-led recovery from years of pandemic-era austerity.

When it comes to cutbacks, Gen Z also bucks expectations: they are more likely to report pulling back on essential items, including healthcare and groceries. Older cohorts, by contrast, are focused on discretionary spending. Dining out (23%) and entertainment (19%) were among the top categories reduced by Gen X+, while Millennials cited takeout and international travel as their main areas of retrenchment.

Nearly half of respondents (46%) say their income has remained flat over the past year. Yet 18% report an outright decrease - with the financial strain cutting deeper among those juggling multi-generational responsibilities.

Dubbed the “sandwich generation,” these individuals support both children and elderly parents or siblings. And while they report stagnant incomes at similar rates to their peers, they are significantly more likely to cite inflation (47%) and struggling business earnings (31%) as reasons for falling income - signalling how cost pressures are amplified when family obligations span in both directions.

More non-sandwich respondents attribute income loss to the erosion of formal employment - with 30% linking their earnings dip to the loss of a full-time job.

“These findings offer new insight into how people are reprioritising their lives,” Hutasoit said. “For businesses, institutions, and policymakers, this presents an opportunity to build approaches that are more relevant, empathetic, and impactful in people’s everyday lives.”

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