Why Shopping Malls and Cafes Remain Busy Amid a Sluggish Economy
Despite a sluggish economy marked by currency devaluation and rising costs, consumer activity remains high. This trend is driven by blurred lines between essential and lifestyle spending, compounded by the psychological impact of digital payments and the failure to accumulate small, recurring costs.
Highlights
- •The Indonesian Rupiah reached a historic low of Rp18,000 per USD on June 4, 2026.
- •Fuel costs for Pertamax rose significantly to Rp16,250 per liter by June 10, 2026.
- •BPS data indicates household spending on food has increased to over 50% since 2016.
- •Small, repetitive daily expenses are compounding into major financial burdens for urban households.
Despite clear signs of a sluggish economy, public spaces such as shopping centers, cafes, and urban hangout spots remain noticeably crowded. This apparent contradiction between broader economic indicators and consumer behavior has sparked questions about how households are managing their finances during these uncertain times. With the Indonesian Rupiah hitting a historic low of Rp18,000 per US Dollar on June 4, 2026, the financial strain on households is becoming increasingly evident through rising costs of imported goods, energy, and food.
The Shift in Consumer Spending Habits
The economic landscape is undeniably challenging, with factors like the surge in Pertamax fuel prices—rising to Rp16,250 per liter as of June 10, 2026—placing additional pressure on monthly budgets. However, the line between essential needs and lifestyle preferences has become increasingly blurred. Modern consumers now view digital subscriptions, internet connectivity, and social outings as integral components of daily life rather than luxury extras. Data from the Central Bureau of Statistics (BPS) highlights this shift, showing that the proportion of household spending dedicated to food rose from 48.68% in 2016 to 50.77% in 2025.
This trend suggests that households are grappling with a double burden: the rising cost of basic nutrition and the growing list of digital and lifestyle requirements. Behavioral economics offers insight into why this happens, specifically through the concept of mental accounting. Consumers often assess small, daily expenses—like purchasing premium coffee or bottled water—in isolation. They fail to realize that these small amounts, when accumulated over a month or a year, represent significant financial outlays that could otherwise be directed toward savings or long-term investments.
Managing Finances in a Sluggish Economy
Psychological factors, such as the present bias, further encourage people to prioritize immediate gratification over future stability. Moreover, the prevalence of digital payment systems has reduced the pain of paying, making it easier to spend money without feeling the immediate impact on one's wallet. Many individuals find it easier to maintain recurring digital service subscriptions than to invest in personal development courses.
To improve financial resilience during this sluggish economy, experts suggest that households focus on adjusting these minor, repetitive habits. Simple changes—such as brewing coffee at home, using a reusable tumbler, and preparing meals instead of relying on delivery services—can yield significant savings. According to the 2026 Susenas report from BPS, expenditure on ready-to-eat food and drinks now accounts for 32.51% of food-related spending. By curbing these discretionary costs and critically reviewing digital subscription services, households can better navigate financial pressures and protect their long-term economic well-being.
