Rising Small-Depositor Savings Signal Stronger Purchasing Power as Economy Accelerates
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JAKARTA, Investortrust.id — Savings held by Indonesia’s small depositors are rising again, signaling that household purchasing power is strengthening in line with the nation’s accelerating economy.
According to data from the Indonesia Deposit Insurance Corporation (LPS) deposits below Rp 10 million grew faster than larger accounts, with balances between Rp 5–10 million rising 8.55% and those under Rp 5 million up 7.91%. The rebound marks a shift after years when smaller depositors’ savings had been declining, reflecting subdued household income and higher living costs.
LPS Chairman Anggito Abimanyu said the increase points to a gradual improvement in saving capacity among lower-income households. “This is an indication that smaller savers are beginning to rebuild their ability to save. It’s an encouraging observation from the depositor side,” Anggito said during the Financial System Stability Committee’s (KSSK) quarterly meeting at Bank Indonesia’s Thamrin Building, Jakarta, on Monday, Nov 3, 2025.
In previous years, the growth of small-scale deposits had stagnated as consumers faced higher inflation and weaker wage growth. Research by Mandala Consulting shows that Indonesia’s household savings rate has trended downward over the past decade, with the share of low-value deposits declining.
A separate report by IDN Financials found that the household savings-to-income ratio fell to 13.7% in July 2025 from 14.1% in June, underscoring the pressure on consumer liquidity earlier in the year.
The recent improvement adds a stronger case for strong macroeconomic growth wthis year. Finance Minister Purbaya Yudhi Sadewa said the government remains optimistic that the economy will grow by around 5.2% this year, supported by robust consumption, resilient exports, and investment expansion. “Our growth outlook of 5.2% remains achievable as domestic demand strengthens,” Purbaya said on Monday after the same KSSK meeting.
Deposits between Rp 100 million and Rp 5 billion also grew 4.19%, compared with 4.82% at the end of 2024. Anggito said LPS would continue to monitor trends over the next two months to assess whether the improvement in household liquidity persists through year-end.
While deposits above Rp 5 billion grew 16.24%—driven by strong corporate earnings and rising investment credit—LPS noted that the recovery in small accounts carries broader social and economic implications. A healthier pattern of savings among low- and middle-income groups supports financial inclusion and cushions households from economic shocks.
Economists see the latest data as a reflection of Indonesia’s post-pandemic recovery broadening beyond corporate and upper-income segments. As inflation remains contained and employment conditions stabilize, households appear more confident in setting aside cash for savings—an early sign that real income growth is improving.