KIC Survey: Middle Class Chooses to Eat Savings Rather Than Go into Debt
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According to a survey by the Katadata Insight Center (KIC), approximately 70% of Indonesian middle-class respondents have experienced situations where their expenses exceeded their income.
In such situations, the majority, or 76.3% of respondents, chose to use their savings or existing resources; 39.2% sought additional funds that were not loans.
"This behavior indicates relatively good financial management, as the middle class tends to avoid debt and relies more on personal financial reserves to cover shortfalls," wrote KIC in its report.
When income was insufficient to meet needs, a small percentage of respondents also borrowed money from friends or family (27.7%); utilized paylater options (14.7%); sought non-online interest-bearing loans (13.3%); or delayed bill payments (8.8%).
A smaller percentage attempted to meet their needs using credit (7.7%); and sought online loans or online lending (pinjol) (7.7%).
The KIC survey involved 472 respondents aged 17–59 years, consisting of 60% male and 40% female. Respondents were spread across 10 major Indonesian cities: Bandung, Medan, Surabaya, Jayapura, Jakarta, Semarang, Banjarmasin, Yogyakarta, Denpasar, and Makassar.
Data collection was conducted online from January 6-9, 2025, using a non-probability sampling method. The survey's margin of error is 4.6%.
The complete results of the KIC survey, titled "Indonesia's Middle Class Amidst Economic Uncertainty," can be accessed via the following link.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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