Economics

Why Aren't Indonesian Consumers Spending?

  • Low unemployment, rising wages haven’t led to higher spending
  • Bank Indonesia has cut interest rates eight times since 2016

The Mystery Over Indonesian Spending

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Almost 4 million new jobs, rising wages and eight interest-rate cuts in Indonesia should have been enough to spur consumers into action in the world’s fourth most populous nation.

Instead, an increasing number of people are keeping a tight grip on their purse strings and putting their money in the bank, leaving policy makers and economists perplexed.