Nadira Rahmadini – Eighty percent of Indonesians say rising living costs have affected their monthly spending, while nearly half lack long-term financial plans, according to Sun Life Indonesia's Financial Resilience Index 2026.
The study, conducted with research firm Genpop in April 2026 among 1,000 respondents aged 18 and above across Indonesia, found that higher living costs remain the biggest challenge facing household finances, underscoring the growing importance of financial literacy in navigating economic uncertainty.
Thirty percent of respondents identified rising living costs as the primary obstacle to improving their financial condition, exceeding concerns over unstable income and limited financial knowledge.
The report found that only 14 percent of respondents consider themselves financially secure, while 45 percent said they could sustain their living expenses for more than six months without income.
Although the proportion of financially resilient individuals increased from 30 percent to 34 percent, the share of households with low financial resilience also grew as progress remained uneven across income groups.
The findings suggest many Indonesians are prioritizing short-term financial needs over long-term planning. Nearly half of respondents, or 48 percent, either do not have a long-term financial plan or only plan their finances up to one year ahead.
Managing daily expenses emerged as the top financial priority for 56 percent of respondents over the next 12 months, surpassing saving, investing, and other long-term financial goals.
To cope with rising costs, 23 percent of respondents said they had relied on savings, 26 percent reduced or postponed essential spending, and 5 percent delayed pension contributions.
Albertus Wiroyo, President Director of Sun Life Indonesia, said the findings reflect how many Indonesians are balancing immediate financial pressures with longer-term goals.
"Financial preparedness has become increasingly important amid changing economic conditions. Trusted financial partners play a key role in helping individuals navigate uncertainty while planning for the future," Albertus said.
The study identified financial literacy as one of the strongest indicators of resilience. Respondents with strong financial literacy were three times more likely to feel prepared for rising living costs and recorded financial confidence scores 53 points higher than those with lower levels of financial knowledge.
They also reported optimism about their financial future that was 47 points higher and were significantly less likely to experience prolonged financial stress.
Among respondents with long-term financial plans, 86 percent believed they could achieve their financial goals, compared with only 25 percent among those without such plans. Similarly, 78 percent felt prepared for financial emergencies, compared with just 13 percent among respondents lacking long-term planning.
The report also highlighted Indonesia's growing adoption of artificial intelligence in personal finance. Sixty-eight percent of respondents said they use generative AI for financial information and guidance, placing Indonesia among the highest adopters of the technology in Asia.
Meanwhile, 67 percent expect their use of generative AI for financial purposes to increase over the next 12 months.
The study found that individuals with stronger financial literacy were more likely to adopt AI tools, suggesting that technology is increasingly complementing financial education rather than replacing it.
Despite the rise of AI-powered financial guidance, respondents continued to value professional financial advisers, particularly for complex decisions with long-term implications.
"Technology has transformed how people access financial information and education, but it does not replace the need for expert guidance. Financial literacy remains essential for evaluating information critically and making sound financial decisions," Albertus said.
Sun Life said the findings highlight three key trends shaping household finances in Indonesia: persistent cost-of-living pressures, the growing importance of financial literacy, and the increasing role of technology in financial decision-making.