Digital Transactions Surge, but Indonesians Still Prefer Cash

Yogyakarta — Bank Mandiri has revealed that Indonesians remain heavily reliant on cash transactions despite rapid growth in digital banking services and widespread internet use among younger generations. Novita Widya Anggraini, Director of Finance & Strategy at PT Bank Mandiri, said digital transactions are rising in step with the dominance of Millennials and Gen Z in online activity. However, cash transactions remain relatively high. ‘We have data that around 39% of transactions are cash,’ she told the Jogja Financial Festival (Finfest) 2026 in Yogyakarta on Friday (22 May 2026). According to her, cash transactions are not only conducted at bank branches but also via ATMs. On the other hand, around 48-49% of transactions are now carried out through internet banking and mobile banking, while about 10% come from electronic money. Novita explained that consumer transaction behaviour has shifted in line with the growing dominance of younger generations in internet usage. ‘Millennials and Gen Z interact online 95% of the time in daily life,’ she said. She added that around 93% of national internet usage is dominated by Millennials and Gen Z, who together account for nearly 60% of Indonesia’s total population. When it comes to Bank Mandiri’s operations, she noted that this behavioural shift has driven a surge in digital transactions, particularly via the Livin’ app. In a day, transactions accessing the Livin’ app have reached around 10 million, with periods when the figure exceeds 13 million. ‘Livin’ is really for daily life. It covers everything from buying online transport, topping up e-money, transferring funds, to paying school fees,’ she said. Nevertheless, Bank Mandiri believes banking cannot fully abandon offline services as there are still segments of society relying on cash. ‘How banks adapt to this public behaviour is a challenge,’ she said. Consequently, Bank Mandiri says it will continue to strengthen both digital services and its offline network to serve all customer segments in Indonesia. ‘We will continue to strengthen online and offline branches to service all customers,’ she concluded.