Despite Challenging Economy, Indonesian People's Optimism Remains Positive

The majority of Indonesians remain positive about the future amid economic pressures over the past year, from stagnant incomes to rising living costs. 

A recent national survey by YouGov found that two in three respondents (68 percent) felt positive, with the majority describing themselves as “optimistic” (28 percent) or “hopeful” (26 percent). Only 17 percent said they felt worried. 

The survey was conducted on April 17-21, 2025, among 2,067 adult respondents from various regions in Indonesia. Forty-six percent of respondents said their income had not changed compared to last year, while 18 percent experienced a decrease. However, optimism was fairly evenly distributed across all age groups. 

"YouGov's findings show that Indonesians have an extraordinary ability to adapt amid economic pressures. They are reviewing household spending, adjusting their lifestyles, and taking more careful financial steps," said YouGov Indonesia General Manager Edward Hutasoit in a written statement, Thursday, June 19, 2025. 

The sandwich generation faces double pressure 

One interesting finding is the financial pressure experienced by the sandwich generation, those who bear the economic burden for both children and parents or siblings. Both the sandwich and non-sandwich groups recorded 46 percent having stagnant incomes. 

However, sandwich respondents more often mentioned inflation (47 percent) and declining business income (31 percent) as the main causes of declining income. Conversely, the loss of a permanent job was more often mentioned by the non-sandwich group (30 percent). 

Spending priorities shift between generations 

Half of respondents experienced an increase in household spending, especially for basic necessities (34 percent), education (25 percent), and savings (24 percent). Millennials and Gen X+ recorded increased spending on household needs such as groceries and electricity. 

On the other hand, Gen Z actually allocates more spending on lifestyle categories such as beauty (21 percent) and fashion (20 percent). 

Differences are also seen in savings strategies. Gen Z cuts spending more on basic categories such as health services and shopping for basic necessities. 

Meanwhile, the older generation, especially Gen X+, prefers to reduce consumptive activities such as eating out (23 percent) and entertainment (19 percent). Millennials themselves tend to hold back on spending on fast food and international travel. 

"These findings open up new insights into how people rearrange their priorities. For business people, institutions, and policy makers, this is an opportunity to build a more relevant, empathetic, and impactful approach to the daily lives of Indonesians," said Edward. 

Tag: Economic Pressures Edward Hutasoit Rising Living