- Precautionary behaviour amid continued pressure on the Rupiah explains the lag in Rupiah deposits vis-à-vis FX deposits, especially among more affluent savers.
- Meanwhile, expectations of higher inflation have also forced less affluent savers to increase their Rupiah deposits.
- A higher saving rate due to differing versions of precautionary motives poses another threat to household consumption, meaning that public sector demand may remain crucial to drive growth.
