Survey: Indonesian consumer sentiment during the coronavirus crisis

| Survey
Indonesian consumers continue to be optimistic, expecting higher incomes and savings, but with decreased spending. Many intend to keep using digital services and omnichannel methods.

In Indonesia, optimism on future economic conditions increased more than 15 percent over March 2022. Spending is expected to decline, with income and savings to grow. Regardless of the decreased spend, more are engaging in out-of-home activities, with modified behavior. Use of social media, food delivery and digital banking are some behaviors that are expected to continue post-COVID-19. Shopping behavior changes are also visible, with consumers most likely to switch retailer/brand/product in the event of stockouts; price is a primary driver. Majority of consumers perceive price increases across categories. Consumers are then most likely to pay the additional premium due to price increase or decide switch brands.

These exhibits are based on survey data collected in Indonesia on August 23-30, 2022. Check back for regular updates on Indonesian consumer sentiments, behaviors, income, spending, and expectations.

0—34
Consumers care about sustainability and health … but do they pay?
Five emerging consumer themes in August 2022
Globally, consumer optimism about economic recovery is highest in Indonesia.
Overall optimism in Indonesia has continued to increase
Economic optimism is greatest among baby boomers, millennials, and vaccinated consumers
An increasing proportion of consumers describe their income and savings as increasing
Overall, fewer consumers want to splurge; intent to spend is more common among middle- and high-income and young consumers
Younger consumers have a stronger desire to splurge, especially on travel, apparel, and dining out
Consumers’ net intent to spend is negative in most categories; exceptions include travel, electronics, and jewelry
The top reason for spending more is higher prices; where spending decreased, consumers cite lower income and smaller purchases
Net intent to spend continue to increase in discretionary categories, mainly in personal care products and flights
More than 50 percent of consumers engage in out-of-home activities; driven by baby boomers, high-income and the vaccinated
Most consumers—about 70 to 80 percent—have modified their behavior when out of home
Roughly 60 percent of consumers have reacted to the BA variant of COVID-19 by changing how they engage in out-of-home activities
Relevance of social media and omnichannel continues in purchase behavior
Omnichannel shopping remains prevalent across categories
Millennials are more likely than others to be influenced by social media
All consumers surveyed say they engage on social-media platforms at least once a week
A majority of consumers engage on entertainment platforms at least once a week
Alternatives to in-store shopping accelerated during the pandemic; 60 to 90 percent of consumers intend to continue
Digital and remote acquisition of services also increased, with strong intent to continue, especially for digital banking
Use of social media, food delivery, and digital banking are some behaviors that consumers expect to continue post-COVID-19
Consumers continue to try new stores, apps, and products for the first time and intend to increase usage
Consumers have also used at-home alternatives to out-of-home activities, with more than 70 percent intending to continue
Brand switching continues with value as top 1 reason among APAC countries
Consumer behavior change has been more extensive among younger and higher-income consumers
More than half of consumers have faced stockouts, mainly in apparel, skin care, and groceries
Consumers are most likely to substitute retailer, brand, or product rather than wait for products to become available
The dominant reason for brand switching was better prices or promotions; novelty and better quality came next
Value is a primary reason for a retailer switch; access comes next for younger consumers, convenience for older consumers
A majority of consumers perceive price increases across categories; the most see increases in groceries, gasoline, and tobacco
Consumers are most likely to respond to a price increase by paying the additional premium or switching brands
All consumers who switched brands opted for a private label or store brand; retailer switches sought better prices or promotions
The most common economic concerns linked to the Ukraine invasion are gasoline shortage and inflation, especially for younger consumers
Consumers care about sustainability and health … but do they pay?
Five emerging consumer themes in August 2022
Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

Read the collection
Explore a career with us
Search Openings
Related Articles
COVID-19: Implications for business
Executive Briefing
COVID-19: Implications for business
Leadership in a crisis: Responding to the coronavirus outbreak and future challenges
Article
Leadership in a crisis: Responding to the coronavirus outbreak and future challenges