Indonesians Save More Not Due to Wealth, But Growing Anxiety

Jakarta, CNBC Indonesia - Indonesians are increasingly diligent in saving money in banks, primarily driven by groups with deposit balances below Rp100 million. At first glance, this appears to be good news as households have a cash buffer that can be used to support consumption.

However, there is an interesting story behind these savings. In its Focal Point report published on 22 June 2026, titled ‘Many Shades of Precautionary Savers’, BCA assesses that the increase in public savings is largely driven by a precautionary attitude.

This means people are not saving solely because their incomes have risen, but because they are worried about future conditions.

‘Precautionary behaviour amid continued rupiah pressure explains the lag in rupiah savings compared to foreign currency savings, especially among more affluent savers,’ BCA wrote in its report, quoted on Tuesday (23/6/2026).

Two major concerns are looming over the public. Groups with larger funds tend to be wary of the rupiah’s depreciation. Meanwhile, lower-income groups are more worried about rising prices of daily necessities.

Savings Below Rp100 Million Grow Fastest

The fastest deposit growth occurred in the group with balances below Rp100 million. As of April 2026, savings in this group grew by 5.4% year-on-year.

This figure is higher than the group with balances of Rp100 million to Rp500 million, which grew by 3.1%, and the group with balances of Rp500 million to Rp1 billion, which rose by 2.4%.

On a year-to-date basis, savings in the lower group also rose by 0.98%. This increase could give the impression that lower-income groups have additional funds to maintain consumption.

However, this interpretation requires caution. At the same time, rupiah savings among wealthier groups actually declined. For the top-tier group, the decline in rupiah savings even reached 2.47%.

As a note, data from the Indonesia Deposit Insurance Corporation (LPS) shows that overall banking deposits remain large. In April 2026, the nominal value of deposits reached Rp10,107 trillion, up approximately 11.4% compared to Rp9,076 trillion in April 2025. However, on a monthly basis, deposits fell by 1.40% from March 2026.

This decline more accurately reflects a change in asset preferences. More affluent groups have greater room to shift funds to other instruments, including foreign currency deposits, especially while the rupiah remains under pressure.

Data from Bank Indonesia in its Money Supply report published on Tuesday (23/6/2026) reinforces this picture. In May 2026, rupiah savings grew by 8.7% year-on-year to Rp2,904.2 trillion. However, foreign currency savings grew much faster, reaching 29.9% year-on-year to Rp260.9 trillion.

This means that while rupiah savings are still much larger in nominal terms, foreign currency savings are growing at a much faster pace. This signals that public interest in holding funds in foreign currency is increasing, especially amid concerns over rupiah depreciation.

Not only savings, but total third-party funds (DPK) in foreign currency also grew by 17.8% year-on-year to Rp1,585.3 trillion in May 2026. This figure is much higher than rupiah DPK, which grew by 9.6% year-on-year to Rp8,113.7 trillion.

Bank Indonesia’s move to tighten the limit on foreign currency purchases to a maximum of US$10,000 also shows that the shift in interest from rupiah to foreign currency is becoming an increasingly important issue.

Not a Sign of Improving Public Income

The increase in savings among lower-income groups is also difficult to interpret as a sign that public incomes are rising strongly.

Manufacturing activity remains unstable. In May 2026, the Manufacturing PMI stood at 49.7, falling back into contraction territory. In PMI terms, a figure below 50 indicates that manufacturing activity is weakening.

This condition is important because manufacturing is closely linked to employment and public income. If factory activity weakens, the room for income improvement is also limited.

Household income expectations for the next six months are also not very convincing. The income expectation index stood at 136.5 in May 2026, down from previously higher levels.

Therefore, the increase in savings among lower-income groups is more likely due to changes in how people manage their money, rather than a sudden sharp improvement in income.

Gold Left Behind, Deposits Return as a Choice

Changes in investment choices also help explain why bank savings are rising again.

Household interest in gold and jewellery is starting to decline. In May 2026, the proportion of households choosing savings or deposits as investment instruments reached 42.7%.

This figure is higher than households choosing gold or jewellery, which stood at 36.3%.

In fact, in January 2026, gold was still more popular. At that time, the proportion of people choosing gold or jewellery reached 41.4%, while savings and deposits were only at 37.9%.

This means that some people are starting to return to banking products that are considered safer and more stable. Rising interest rates have also made deposits more attractive, while the pace of gold price increases has begun to lose momentum.

Not About Getting Rich, But Fear of Rising Living Costs

The strongest factor is concern over price increases. Many households are increasing their savings because they want to have cash reserves in case goods become more expensive.

This pattern is visible from the portion of household expenditure allocated for consumption. In May 2026, the portion of spending on consumption was 72.3%. This figure has started to rise from a low point of 71.6% at the beginning of 2026, but is still lower than the previous position of around 74.3%.

Meanwhile, the index for durable goods purchases stood at 108.3 in May 2026. This means that public interest in buying big-ticket items such as electronics, vehicles, or household equipment has not yet recovered.

Concerns about prices also affect