Global economic uncertainty is influencing Indonesian shopping behavior, with some people holding back on car spending and redirecting funds to gold as a safer investment. Economist Joshua Pardede notes that economic recovery has not been evenly felt, particularly among the middle class.
Jakarta, VIVA - Global economic uncertainty is beginning to affect Indonesian shopping behavior, including decisions on vehicle purchases. Instead of allocating funds for major consumption like cars, some people are now choosing to hold back spending and redirect it to investment instruments considered safer, such as gold.
Economist Joshua Pardede views this phenomenon as closely related to the economy that has not fully recovered, particularly among the middle class group that has been the backbone of the national automotive market. “If we liken the economy to a car, the engine is actually running, but not yet fully gassed. That means economic activity is underway, but not fully recovered,” said Joshua in the Senayan area, Central Jakarta, Friday, March 6, 2026.
According to him, Indonesia's economic growth has shown an improvement trend in recent years, but this recovery has not been felt evenly by the public, especially the middle class who are more sensitive to economic changes. In such situations, people tend to be more cautious in making financial decisions, especially for purchases of high-value items like cars or property.
Joshua explained that global uncertainty, including geopolitical conflicts and world economic fluctuations, also influences consumer psychology. “When the global situation is uncertain, many people end up holding their money. They delay purchases of big items like cars or property,” he said.
Funds previously intended for consumption are instead diverted to gold, which is seen as more resilient amid economic turmoil. This phenomenon has affected the automotive market dynamics in recent years, with vehicle sales still moving but not as aggressive as the pre-pandemic period. Nevertheless, the prospects for the national automotive industry remain positive in the medium to long term, supported by Indonesia's large market potential and relatively low car ownership rates compared to other Southeast Asian countries.
