The current recovery raises a critical question: Is this growth organic, or is it the result of the government’s aggressive policy interventions? These measures represent progress, signalling that policymakers understand that purchasing power is the prerequisite for sustained growth. The majority of Indonesians, specifically those with bank account balances under 100 million rupiah, saw their savings growth weaken until very recently. When purchasing power is weak, pushing banks to lend aggressively is a high-stakes strategy. This data suggests that the recent spending spree may be less of a fundamental recovery and more of a seasonal spike, driven by upper-middle-class holiday spending and a shift in Gen Z behavior toward “experience-based” leisure.

Source: The Star January 14, 2026 02:42 UTC