April 22, 2013
Indonesians Save 13 Percent of Their Income On Average
Indonesia, 22 April 2013 – Based on a MasterCard survey, 89% of Indonesians continue to save more money from their monthly income for future reasons in at least the next 6 months. In general, Indonesians prioritize the saving for mainly investments in the future, pension, properties and possession of private vehicles.
Furthermore, the majority of the total 417 respondents of the MasterCard Survey on Consumer Purchasing Priorities agreed to set aside 1 – 10% of their income, while others planned to save 11 – 20% and 20 – 30% at the least. On average, they save approximately 13% of their total salary.
Interestingly, the survey reveals how the respondents agree to be able to survive on their savings despite having no source of income anymore. As much as 25% of the respondents said they could survive on their savings for more than six months, while 20% thought that three months would be the maximum and 18% thought they could only survive for two months.
The survey also reveals that Indonesians put an emphasis on arranging their retirement plan to enjoy the fruit of their past success. Approximately 61% of the respondents were optimist that the savings would provide an adequate financial support in their ideal retirement ages between 51 – 60 years old, while 28% of the respondents thought the age of 50 is an ideal retirement age. In addition, 11% of the respondents thought that the ages ranged between 61 – 70 is the comfort zone for their retirement days. To conclude, the survey suggests that most Indonesians tend to think of the age 56 as the ideal age for retirement with an adequate financial support.
In terms of investing, the MasterCard Survey shows that Indonesians also put a great emphasis on choosing the best investment plan/product. They also agreed to monitor their investment very closely.
Irni Palar, Country Manager of MasterCard Indonesia said, "In terms of financial management, the latest MasterCard survey shows very encouraging developments in the Indonesian society. Most people have started to realize the importance of saving to prepare for future needs."
"As part of Indonesian society, MasterCard is also excited for the fact that people are starting to understand the importance of better financial management pattern. By having a better financial management, we can expect an increase in quality of life, both to individuals and their families in the future, " she added.
The survey also contains an analysis on the action taken by the respondents if their income has been deducted by 15%. They agreed on cutting the spending for dining out as their first choice, followed by using their savings as the second choice and domestic traveling as the third choice.
To the contrary, the repondents agreed to prioritizing buying tickets to events or shows as the first thing they’d do after earning bonuses or additional money out of their mothly income, followed by putting the money into their savings or spending the money on dining at restaurants with family members and close friends.
The MasterCard Survey on Consumer Purchasing Priorities, released twice yearly, is aimed at determining consumer spending priorities, including education, travel, dining and entertainment, financial management and expenditure of luxury goods across 14 markets in Asia Pacific. The survey and its accompanying reports do not represent MasterCard financial performance.
The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the Index of Global Destination Cities. In addition to the Indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).
MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004.
MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide and published by John Wiley & Sons.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.