Survey: Middle Class Begins Separating Expenditure Allocations

In response to mounting cost-of-living pressures and economic uncertainty, Indonesia's middle class is adopting more disciplined financial management strategies, notably by segmenting their spending through digital "pouches."

A recent survey by Katadata Insight Center reveals that a significant majority, over 51.8%, now consciously separates funds for monthly bills and daily necessities. This proactive approach extends to financial planning, with 68% of respondents actively planning their income and expenditures, and 44.9% diligently tracking their daily spending. These habits are crucial as the middle class, despite a recent dip in numbers from 57.3 million in 2019 to 47.2 million in 2024, remains the backbone of national household consumption, contributing a substantial 81.5%.

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This measure is a policy to prevent ordinary New Yorkers and the working class from being alienated from the World Cup due to price barriers in a situation of high inflation.

The rise of digital banking has made this financial segmentation more accessible than ever. Features like "pouches" offered by various digital banks allow users to allocate funds for specific purposes—be it bills, savings, transportation, or emergency funds. This digital innovation not only streamlines manual budgeting methods but also provides a psychological boost, with 96.1% of users reporting increased peace of mind due to clearer financial planning. Experts note that these digital tools are also highly beneficial for small and medium-sized enterprises (UMKM) in managing their cash flow more effectively and transparently.

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To explain it simply, it's the price of five lattes in New York.