The Center of Economic and Law Studies (Celios) highlighted the decline in third-party funds (DPK) for savings and deposits influenced by weakening purchasing power in Indonesia.
"The Consumer Savings Index (IMK) is very reasonable to fall, because people's income is no longer available to be set aside for savings," said Celios Executive Director Nailul Huda when contacted on Tuesday, June 3, 2025.
Nailul said that people's income was used up to meet daily needs, especially ahead of the Eid momentum. This, said Nailul, also boosted the trend of alternative loans such as paylater and online loans.
Nailul is pessimistic that there will be an improvement in the CPI as long as purchasing power has not improved. He also stated that he has not seen any signs of improvement. This is reflected in the deflation experienced in May 2025. The Central Statistics Agency (BPS) announced that deflation occurred in May 2025 of 0.37 percent on a monthly basis or month to month (mtm).
Nailul also predicted that the deflation trend would occur in August or September. "If that happens, then the IMK will weaken further."
The Deposit Insurance Agency (LPS), in the Consumer and Economic Survey (SKP), announced that the IMK in May 2025 was at level 79. The figure fell 4.4 points from the previous month.
This is in line with the decline in the Savings Time Index (IWM) component by 1.7 points in the same period to level 92.9.
The Savings Intensity Index (IIM) also fell 7.1 points to level 65.1 "This development indicates that savings plans and intensity tend to weaken," said LPS Research Group Director Seto Wardono in his official statement in Jakarta, Monday, June 2, 2025, as quoted by Antara.
Seto explained that one of the possible triggers for the decline in the savings index was because many household expenses during that period were intended to finance education, namely during the new student admission period and approaching the start of the new school year.
Entering the new 2025/2026 academic year, LPS also noted that many respondents stated that increasing education costs had caused an increase in household expenditure.