McKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisis

McKinsey & Company 1
We have seen five fundamental shifts to consumer behavior, some
of which will have a lasting impact, as a result of the pandemic
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/30/2020, n = 1,034, sampled and weighted to match Indonesia general population 18+ years
Up to
60%
net increase in
intent to spend
online even
post-COVID-19
2. Flight to
digital and
omnichannel
Up to
40%
net decrease in
intent to spend
on most
discretionary
categories
1. Shift to value
and essentials
92%
of Indonesian
consumers have
tried a new
shopping behavior
in the past three
months
3. Shock to
loyalty
78%
of Indonesian
consumers are
not yet resuming
“normal” out-of-
home activities
4. Homebody
economy
5. New holiday
outlook
87%
of households
plan to maintain
or decrease
holiday spending

Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; bars may not sum to 100% due to rounding.
Source: McKinsey & Company COVID-19 Consumer Pulse Survey
Spain
9/24–27
UK
9/24–27
Italy
9/24–27
China
9/16–24
Brazil
9/21–25
France
9/24–27
10
17 12
20
28
17
37
26
35
42
31
32 38
45 53
52
51
66
47
60
53
47
62
58 58
39 35
28
20 17 17 14 12 11 7
4
US
9/18–24
S. Africa
9/18–29
Japan
9/22–28
India
9/1–27
8
38
53
Unsure: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
Pessimistic: COVID-19 will
have lasting impact on the
economy and show regression/
fall into lengthy recession
Optimistic: The economy will
rebound within 2–3 months and
grow just as strong as or
stronger than before COVID-19
Shift to value and essentials
Indonesian confidence in the country’s economic recovery is among
the highest in the world
Indonesia
9/21–30
Mexico
9/21–28
Germany
9/24–27

Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; figures may not sum to 100% because of rounding.
9% 6% 6% 7% 9% 8% 8%
40% 45%
41%
48%
52% 52%
38%
51% 49%
53%
45%
39% 40%
53%
Sep 21-30May 20–22Apr 25–26Mar 28–29 Apr 3–6 Apr 10–12 June 19–21
Indonesia
Mixed: The economy will
be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19
will have lasting impact
on the economy and
show regression / fall into
lengthy recession
Optimistic: The economy
will rebound within 2–3
months and grow just as
strong as or stronger than
before COVID-19
Consumers’ optimism in Indonesia’s economy has returned to
levels last seen in March
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21-9/30/2020, n = 1,034; 6/19–6/21/2020, n = 726; 5/20–5/22/2020, n = 715; 4/25–4/26/2020, n = 711; 4/10–4/12/2020, n = 722;
4/3–4/6/2020, n = 718; 3/28–3/29/2020, n = 691, sampled and weighted to match Indonesia's general population 18+ years

1 Q: How long do you believe you need to adjust your routines, given the current COVID-19 situation, before things return back to normal (e.g., government lifts restrictions on events/travel)? Figures may not sum to
100% because of rounding.
2 Q: How long do you believe your personal/household finances will be impacted by the COVID-19 situation? Figures may not sum to 100% because of rounding.
13%
15%
27%
31%4–6 months
15%
0–1 month
2–3 months
7–12 months
More than one year
9%
18%
28%
24%
17%
7–12 months
5%
No impact
2–3 months
0–1 month
4–6 months
More than one year
Adjustments to routines1
% of respondents
Impact on personal/household finances2
% of respondents
~59%
believe it will take
another 4+ months
before routines can
return to normal, up
from 55% in the last
pulse survey
~69%
believe their finances will
be impacted for another
4+ months by the
COVID-19 situation, up
from 62% in the last
pulse survey
Still, most Indonesians continue to believe the personal and financial
impact from COVID-19 will last longer than another four months
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/30/2020, n = 1,034; 6/19–6/21/2020 ,n = 726, sampled and weighted to match Indonesia's general population 18+ years

Household income1,2
% of respondents
1 Q: How has the COVID-19 situation affected your (family’s) overall available income, spending, and savings in the past two weeks? Figures may not sum to 100% because of rounding.
2 Q: How do you think your overall available income, spending, and savings may change in the next two weeks? Figures may not sum to 100% because of rounding.
Household spending1,2
% of respondents
June 19–21 September 21–30 June 19–21 September 21–30
Household savings1,2
% of respondents
June 19–21 September 21-30
About the sameReduce slightly / reduce a lot Increase slightly / increase a lot
63%
3%
26%
Past 2 weeks
25%
18%
72%
11%
Past 2 weeks
41%
41%
Next 2 weeks
6%
17%
77%
20%
67%
Past 2 weeks Past 2 weeks
30%
13% 19%
51%
Next 2 weeks
More than 60 percent of Indonesians have seen reductions in income
and savings, yet around 50 percent have increased spending
Past 2 weeks
23%
52% 51%
25% 26%
23%
Past 2 weeks
38%
45%
17%
Next 2 weeks
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/30/2020, n = 1,034; 6/19–6/21/2020, n = 726; sampled and weighted to match Indonesia's general population 18+ years

Change in shopping mindset since COVID-191
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started”; figures
may not sum to 100% because of rounding.
6%
7%
8%
6%
7%
33%
37%
39%
52%
53%
62%
56%
53%
42%
41%
Becoming more mindful of where I spend my money
100%
Spending time planning / making lists for shopping trips
Looking for ways to save money when shopping
Changing to less expensive products to save money
Researching brand and product choices before buying
Doing moreDoing less Doing about the same
Indonesians are becoming more mindful of how they spend their
money and are increasingly looking for ways to save
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/30/2020, n = 1,034, sampled and weighted to match Indonesia's general population 18+ years

Expected spending per category over the next two weeks compared to usual1
% of respondents
1 Q: Over the next two weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3 Not included or insufficient sample (n = < 75) in first survey.
4 Based on small subset (n < 100) of sample population.
7
22
28
35
41
49
60
52
55
56
59
12
9
14
35
51
21
43
31
15
25
16
14
11
16
9
26
30
22
15
12
26
Groceries
Accessories
Snacks
Alcohol
Tobacco products
Food takeout & delivery
Quick-service restaurant
Restaurant 10
Footwear
10Apparel
Jewelry
Non-food child products
Household supplies
Personal-care products
Skin care & makeup
Furnishings & appliances
OTC medicines
Decrease Increase
Stay the same
11
16
49
61
50
37
32
46
29
50
55
46
25
64
42
59
55
49
36
15
19
12
23
16
14
19
12
14
20
11
24
14
16
Vehicle purchases
Fitness & wellness
Out-of-home entertainment
Consumer electronics
Vitamins/supplements
Entertainment at home
10
Books/magazines/newspapers
Pet-care services
Personal-care services
Gasoline
Short-term home rentals
Travel by car
Cruises4
Adventures & tours
International flights
Hotel/resort stays
Domestic flights
Net intent2Net intent2
+36
+14
+21
-39
+9
-13
-10
-25
-35
-50
-41
-40
-50
+8
-20
+5
+20
-34
-51
-31
-25
-9
-30
-15
-31
-43
-32
-5
-53
-18
-45
-39
+38
Net intent: Above +1
Net intent: -15 to 0
Net intent: Below -15
Change since
first survey
Change since
first survey
Intent for discretionary spending remains low as Indonesians
prioritize essentials such as groceries and household supplies
-12
-5
+7
-11
N/A3
+35
+27
+14
-4
+22
+15
+2
-26
-13
-4
+4
N/A3
N/A3
-4
-11
+14
+50
N/A3
+26
+31
+31
+25
+23
+40
N/A3
+28
+54
+37
+39
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/39/2020, n = 1,034; 3/28–3/29/2020, n = 691, sampled and weighted to match Indonesia's general population 18+ years
-45

More people expect to make a portion of their purchases online
post-COVID-19 than before…
Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Includes respondents who chose “some online,” “most online,” and “all online.” Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
4 Expected growth after COVID-19 compared to pre-COVID-19 slightly lower than previous waves due to respondents reporting higher online activity in pre-COVID-19 situation.
29
34
31
48
46
36
42
57
39
46
60
53
55
62
49
68
56
66
65
82
Groceries
+21
+17
Household supplies
+24
+13
Over-the-counter medicine
Books, magazines, newspapers +30
+23
+25Snacks
+21
+28Furnishings & appliances
+11
Vitamins/supplements
+25Alcohol
+16Tobacco
+18
Fitness & wellness
+23Skin care & makeup
+20Footwear
+19Consumer electronics
+20Food takeout & delivery
Jewelry
Accessories
+14
+15Apparel
+13
Pre-COVID-19 Expected growth after COVID-19
% growth in customers
purchasing category online
+83%
+74%
+68%
+63%
+61%
+58%
+55%
+44%
+41%
+39%
+38%
+38%
+35%
+32%
+27%
+25%
+25%
+23%
+20%
+13%
Flight to digital and omnichannel
Up to 60%
growth in consumers
who purchase online for
most categories4

Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing most or all online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
4 Expected growth after COVID-19 compared to pre-COVID-19 slightly lower than previous waves due to respondents reporting higher online activity in pre-COVID-19 situation.
% growth in customers purchasing
category most or all online
Up to 165%
growth in consumers who
purchase most or all
online across categories4
…with many consumers planning to shift almost completely online
11
11
8
19
16
12
17
29
19
10
27
23
20
26
20
32
27
24
29
60
Snacks
Jewelry
+25
+18
+24
Over-the-counter medicine
+31
+29
Consumer electronics +27
Skin care & makeup
+17
Groceries +14
+11
Books, magazines, newspapers
+20Furnishings & appliances
+17Household supplies
+26Vitamins/supplements
+20Alcohol
Tobacco
Apparel
+19
Footwear
+27Food takeout & delivery
+20
+16
+23Accessories
+13Fitness & wellness
+23
Pre-COVID-19 Expected growth after COVID-19
+168%
+165%
+165%
+164%
+125%
+147%
+149%
+69%
+57%
+193%
+92%
+103%
+138%
+101%
+100%
+70%
+48%
+122%
+82%
+27%

Have you used or done any of the
following since COVID-19 started1
% of respondents
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; “will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
3 Not included in the survey/data not available.
19%
12%
10%
4%
3%
6%
4%
6%
11%
12%
5%
42%
36%
23%
6%
6%
11%
6%
16%
16%
21%
11%
4%
8%
5%
3%
4%
8%
5%
10%
4%
5%
5%
Buy online for in-store pickup
Meal-kit delivery
Store curbside pickup
Used a new store/restaurant app
Purchased directly from social media
Purchased pre-owned products
In-store self-checkout
Used deal-finding plug-ins
Restaurant delivery
Grocery delivery
Restaurant curbside pickup
Quick-serve restaurant drive-thru
Just started using Using more Using same/less Not using
Intent to
continue,2 %
69%
65%
N/A3
61%
74%
49%
61%
50%
57%
71%
67%
75%
Indonesians have intensified the usage of restaurant and grocery
delivery and intend to continue these habits post-COVID-19
N/A3

Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
UsergrowthsinceCOVID-192
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Many Indonesians intend to continue their food delivery and online
shopping habits even after the crisis is over
Accelerated shifts
Potentially here to stay
Works for now
1 8160575049 79 8347 850
0
100
3 51 53 8755 6359 61 65 67
50
69 70 71 8073 75 77
New store/restaurant app
Grocery delivery
Restaurant delivery
Quick-serve
restaurant
drive-thru
Purchased pre-owned products online
Purchased from social media
Deal-finding plug-ins

Have you used any of the following since COVID-19 started1
% of respondents
Nine out of ten Indonesians have tried a new shopping behavior,
and most intend to continue their new habits beyond the crisis
1 Q: Since the coronavirus (COVID-19) situation started (i.e., in the past ~3 months), which of the following have you done?
2 Q: Which best describes whether or not you plan to continue with these shopping changes once the coronavirus (COVID-19) situation has subsided? Possible answers: “will go back to what I did before coronavirus”; ”will keep doing both this and
what I did before coronavirus”; ”will keep doing this and NOT go back to what I did before coronavirus.” Intent to continue includes respondents who selected “will keep doing both this and what I did before coronavirus” and “will keep doing this
and NOT go back to what I did before coronavirus.”
3 “New shopping method” includes curbside pickup and delivery apps.
Intent to
continue2
85%
84%
77%
88%
82%
92%
Consumers have tried
a new shopping
behavior
Shock to loyalty
56%
47%
32%
31%
15%Private label/store brand
Different retailer/store/website
New digital shopping method
Different brand
New shopping method3

More than 60 percent of Indonesian consumers cite value and
convenience as drivers for trying new places to shop
Reason for shopping at a new retailer/store/website in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you shopped from a new retailer/store/website since the coronavirus (COVID-19) situation started. What was the main reason you decided to try this new retailer/store/website? Select up to 3.
37%
26%
19%
28%
22%
17%
11%
35%
19%
10%
22%
7%
21%
Can get all the items I need from one place
Better prices/promotions
Better shipping/delivery costs
Better value
Less crowded / has shorter lines
More easily accessible from my home
Offers good delivery/pickup options
Offers natural/organic options
Products are in stock
Better quality
Supporting local businesses
The company treats its employees well
Cleaner / has better hygiene measures
Value
Purpose-driven
Quality/organic
Health/hygiene
Availability
Convenience
x% Net % of respondents per
category
62%
63%
35%
29%
26%
21%
Shock to loyalty

More than 75 percent of consumers who tried a new brand cite
value as a driver
Reason for trying a new brand in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you tried a new/different brand than what you normally buy. What was the main reason that drove this decision? Select up to 3. “Brand” includes different brand, new private label/store brand.
Quality/organic
Value
Convenience
Purpose-driven
Health/hygiene
Availability
x% Net % of respondents per
category
44%
78%
27%
27%
24%
24%
Shock to loyalty
45%
29%
27%
13%
27%
22%
27%
17%
11%
24%
24%
Is natural/organic
Cleaner / has better hygiene measures
Larger package sizes
Better prices/promotions
Better value
Better shipping/delivery costs
Products are in stock
Better quality
Supporting local businesses
The company treats its employees well
Is available where I’m shopping

Consumers buying based on company behavior1
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started.”
Figures may not sum to 100% because of rounding.
Consumers are paying increased attention to healthy and hygienic
packaging
7%
8%
8%
10%
14%
46%
53%
54%
59%
59%
47%
39%
38%
32%
26%Company’s purpose/values
Healthy and hygienic packaging
100%
How companies take care of the safety of their employees
Sustainable/eco-friendly products
Retailers promotion of sustainable solutions
Doing less Doing moreDoing about the same
Shock to loyalty

McKinsey & Company 16Source: McKinsey 2020–21 Global Sentiment Survey
Consumers are much more likely to trade down to less expensive
brands this year than last year
8
26
12
7
3.3x
Trade down Trade up
2019
2020
10
32
11
2
5
24
13
7
5
23
14
12
Indonesia income tiers, household, monthly
> RP 37,500,000RP 8,500,001–37,500,000< RP 8,500,000
Trade-off behavior in a standard shopping basket by income tier1,2
%, September 2020 and September 2019
1 Q: Please indicate how your buying behavior has changed in a standard shopping basket for the items shown in the past 12 months (since September 2019). Possible mutually exclusive answers: “switching to less expensive brands”; “buying the
same brand as I bought 12 months ago, but at stores with lower prices”; “buying only when on sale or with coupon”; “buying less frequently of lower quantity of the same brand”; “switching to more expensive/premium brands”; “have made some
other change in how I buy these products”; “have not made changes in how I buy these products.”
2 Base for trade-off behavior is customers who have changed behavior.
Shock to loyalty

Milestones for Indonesia population not yet engaging with out-of-home activities1
% of respondents awaiting each milestone before engaging
Few Indonesians are engaging in ‘normal’ out-of-home activities as
they wait for indicators beyond lifting of government restrictions
1 Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart rebased to exclude those already participating in these activities and those who do not deem any of these items important.
Figures may not sum to 100% because of rounding.
61
20
19
Government lifts
restrictions + other
requirement
Government lifts restrictions
Only once there’s a
vaccine or treatment
Medical authorities deem safe 21%
Stores, restaurants, and other indoor
places start taking safety measures 19%
I see other people returning 7%
Government lifts restrictions and…
78%
of people are not
currently engaging
in “normal” out-of-
home activities,
down from 79% in
the last survey
Homebody economy
~16% of Indonesians will not
engage in “normal” out-of-home
activities until there is a vaccine
or treatment (down from 23% in
the last pulse survey)

Most Indonesians are concerned about attending large events, using
public transportation, and traveling by airplane
Consumers’ level of concern undertaking various activities1
% of respondents
1 Q: How worried would you be if you were to do the following activities in the next two weeks? Possible answers: “not worried at all”; “not very worried”; “somewhat worried”; “very worried”; “extremely worried.”; figures may not sum to 100%
because of rounding.
2 Level of concern is calculated by subtracting the % of respondents stating they “not worried at all” and “not very worried” from “very worried” and “extremely worried.”
Level of concern2
74
66
65
59
62
56
59
54
46
43
52
50
43
18
22
13
-1
520%
16%
30%
13%
19%
9%
8%
9%
9%
6%
7%
6%
6%
5%
5%
6%
5%
5%
4%
55%
55%
41%
53%
45%
42%
41%
38%
36%
39%
34%
34%
32%
31%
32%
27%
26%
25%
18%
25%
29%
29%
35%
37%
49%
51%
52%
55%
56%
59%
60%
62%
64%
64%
68%
70%
71%
78%
Shop for non-necessities
Drive more than 2 hours from home
Travel by airplane
Shop for groceries/necessities
Stay in a hotel
Work outside my home
Rent a short-term home
Get together with family
Use ride-sharing service
Dine at a restaurant or bar
Go to a hair or nail salon
Visit a crowded outdoor public place
Go to a shopping mall
Get together with friends
Go to the gym or fitness studio
Go out for family entertainment
Use public transportation
Use a clothing rental service
Attend a large event
WorriedSomewhat worriedNot worried
Homebody economy
40

Masks and barriers are an increasing priority to consumers as they
decide where to shop in-store
Top priorities when deciding where to shop in-store1
% of respondents for whom this criterion is the most important2
1 Q: Once restrictions lift, which of the following factors will be most important to you as you decide which of these places to visit in person? Respondents were asked to select the most important.
2 The following categories are included in each bucket: Cleaning and sanitization—increased cleaning, improved air filtration, availability of sanitizing supplies throughout the store; Health checks—customer wellness check (e.g., temperature) on
entry, employees' wellness check (e.g., temperature) on entry; Masks and barriers—customers and employees wear masks, customers and employees provided masks and gloves, plastic barrier with cashier; No-contact purchasing—curbside
pick-up, cashier-less checkout, no-contact delivery, buy online for pickup in store; Physical distancing—customer number limit, distancing in customer line, reduced employee activity during shopping hours; Store regulations—no customer product
testing, one-way store aisles, special hours for high-risk shoppers.
Homebody economy
Change since the
first measure, pp.
+6
+21
-18
-7
+3
+3
31%
21%
16%
15%
11%
6%Store regulations
Health checks
Masks and barriers
No-contact purchasing
Cleaning and sanitization
Physical distancing
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/30/2020, n = 1,034; 5/20/2020–5/22/2020, n = 715, sampled and weighted to match Indonesia's general population 18+
years

Indonesians intend to slightly increase their level of engagement with
out-of-home entertainment over the next two weeks
Consumers’ engagement with activities outside home1,2
% of respondents
1 Q: Did you leave your house for the following activities over the past two weeks? Chart represents the percentage of respondents who indicated that they left home at least once during the past week to do this activity.
2 Q: For which of the following activities do you intend to leave your home to do in the next two weeks? Chart represents % of respondents who intend to leave their home to do this activity during the next two weeks.
73%
61%
39%
37%
34%
32%
27%
17%
21%
16%
13%
11%
8%
13%
9%
Past 2 weeks Next 2 weeks
There is a strong
correlation between
concern in participating
in a particular out-of-
home activity and
intent to participate
(R2~0.9), suggesting that
out-of-home activity
engagement is driven by
individuals’ level of
concern with the activity
Homebody economy
74%
57%
41%
34%
33%
30%
23%
17%
17%
16%
15%
11%
10%
9%
8%
Drive more than 2 hours away from home
Shop for groceries/necessities
Use ride-sharing service
Work outside my home
Dine at a restaurant or bar
Travel on public transportation
Go to a hair or nail salon
Go to the gym or fitness studio
Travel by airplane
Attend a large event

Feel unsafe
Somewhat
unsafe
30%
31%
39%Feel safe
Top activities eager to get back to2
% of respondents for whom the activity is in their top 3 choices
40%
33%
34%
35%
23%
Attend a concert, sporting event, movie, etc.
29%Interact with coworkers in person
25%
13%
at shopping mall/department store
Dine indoors at a restaurant/bar
17%
Travel by airplane
9%Go to a hair or nail salon
7%Go to gym or fitness studio
Indonesians are most eager to get together with family, visit a
crowded outdoor public place, and go out for family entertainment
Level of comfort with out-of-home
activities,1 % of respondents
1 Q: What best describes your comfort participating in activities you did prior to COVID-19? Figures may not sum to 100% because of rounding.
2 Q: What best describes your comfort participating in activities you did prior to COVID-19? If answered “somewhat unsafe or unsafe,” Q: Which of the following activities are you most eager to get back to on a regular basis? Select up to 3.
Homebody economy

Higher-income and Greater Jakartan consumers are the majority of
households maintaining or increasing out-of-home activity
1 Q: Which is your current level of engagement with out-of-home activities (e.g., get together with family or friends, dine at bar or restaurant, etc.)? Possible answers: “minimum levels”; “less than before the coronavirus situation started”; “a similar
number of activities as before the coronavirus situation started”; “more activities than before the coronavirus situation started.” Figures may not sum to 100% because of rounding.
2 Sum of respondents answering “minimum levels” and “less than before the coronavirus situation started.”
3 Sum of respondents answering “a similar number of activities as before the coronavirus situation started” and “more activities than before the coronavirus situation started.”
16%
9%
56%
35%
19%
27%
9%
29%
GenX BoomersGenZ Millennials
36%
23%
31%
24%
33%
54%
> RP 37.5MRP 8.5–37.5M< RP 8.5M
37%
68%
32%
15%
31%
18%
Rest of IndonesiaTier 1 CitiesGreater Jakarta
By regionBy generation By income (monthly)
Less engagement2
Same/more engagement3
Out-of-home engagement level1
% of respondents
Homebody economy

Indonesians have acquired at-home alternatives to out-of-home
activities, such as remote learning and video conferencing
15%
4%
6%
4%
3%
5%
4%
6%
5%
26%
13%
7%
8%
13%
7%
43%
21%
21%
18%
15%
13%
6%
10%
8%
47%
26%
11%
17%
45%
13%
6%
21%
8%
17%
25%
10%
5%
6%
6%
4%
6%
4%
5%
7%
Remote learning: my children
Wellness app
Digital exercise machine
Watching e-sports
Remote learning: myself
Telemedicine: physical
Video chat: personal
Personal care/grooming at home
Playing online games
Cooked regularly for myself/my family
TikTok
Videoconferencing: professional
Social media
Online streaming
Online fitness
Telemedicine: mental
1%
Not using Using moreUsing less / the same Just started usingHave you used or done any of the
following since COVID-19 started1
% of respondents
Intent to
continue,2 %
67%
52%
56%
53%
48%
65%
66%
74%
73%
74%
55%
88%
N/A 3
50%
60%
56%
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “ will increase this” among new or increased users.
3 Not included in the survey / data not available.
Homebody economy
N/A 3

UsergrowthsinceCOVID-192
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; “will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
The COVID-19 crisis has accelerated the adoption of at-home
alternatives, many of which are likely to remain long-term
Homebody economy
Works for now
Accelerated shifts
Potentially here to
stay
50
500 87857555 60 65
0
100
70 888280 81 83 84 86
150
200
TikTok
Wellness app
Online fitness
Used social media
Personal care/
grooming at home
Online streaming
Watching e-sports
Cooked regularly

Online streaming and grocery and restaurant delivery recruited the
most new and increased users compared to other at-home alternatives
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
3 Change since first survey is calculated by dividing the difference in % new/increased users between Sep’20 and Apr’20 by the Apr’20 figure.
4 Data not available.
Have you started/increased usage since COVID-19 started1,2
% of respondents
49
46
44
43
40
35
29
30
21
17
28
19
11
10
10
24
16
14
12
Restaurant delivery
Online streaming
Grocery delivery
Watching e-sports
TikTok
Quick-serve restaurant drive-thru
Wellness app
Online fitness
Change since
April survey,3 %New/increased users
-36%
-78%
-70%
N/A 4
N/A 4
-25%
-43%
-54%
-54%
-62%
-58%
-54%
N/A 4
N/A 4
-72%
N/A 4
-81%
-86%
-83%
Homebody economy
Source: McKinsey & Company COVID-19 Indonesia Consumer Pulse Survey 9/21–9/30/2020, n = 1,034; 4/25–4/26/2020, n = 711, sampled and weighted to match Indonesia's general population 18+ years

Online only
27%
71%
Hybrid
2%
In-person only
1 Q: What education format is your child/children’s school primarily using today? Figures may not sum to 100% because of rounding.
2 Q: Please indicate how strongly you agree or disagree with each of the following statements. Statements include: “I expect remote learning to be a key education format for formal and/or informal education for the next 3 months”; “given
the uncertainty of school openings, I am planning to spend more on at-home learning tools and equipment (e.g., tutoring services, desk equipment, electronics)”; “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from 1 “strongly disagree” to 6 “strongly agree.” Figures may not sum to 100% because of rounding.
Remote learning is widespread and families expect it to continue;
many are making changes to adapt
Education format1
% of respondents
Homebody economy
57
50
40
Expect online to
continue for 3+ months
Reduce work hours
Invest in at-home
learning tools
Agree/Strongly agree
Change in beliefs/behaviors for those with children in remote
learning,2 % of respondents
~98%
of children in
some form of
remote learning

1 Q: Please indicate how strongly you agree or disagree with each of the following statements: “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from 1 “strongly disagree” to 6 “strongly agree.” Figures may not sum to 100% because of rounding.
2 Monthly income.
Overall
< RP 8.5M2
RP 8.5–37.5M2
> RP 37.5M2
50
Agree/Strongly agree
45
50
54
Reduction in work hours for those with children in remote learning1
% of respondents
More than half of families with children in remote learning have
reduced work hours to meet at-home learning needs
Homebody economy
50%
of families have
reduced work hours

1 Q: How do you think your spending for the upcoming seasonal holidays (e.g., Singles Day, Black Friday, Christmas) may change compared with last year? Rated from 1 “significantly decrease” to 5 “significantly increase.” Figures may not sum to
100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
77% 75%
62%
14%
11%
22%
8% 15% 15%
> RP 37.5M< RP 8.5M RP 8.5–37.5M
Most Indonesians plan to reduce holiday spending this year,
regardless of income level
New holiday outlook
~87%
of households plan
to maintain or
decrease holiday
spend
71%
16%
13%
About the same
Overall
Spend more
Spend less
Overall By income (monthly)
Net intent2
-58 -69 -60 -47
Holiday shopping spending intent1
% of respondents

13%
21%
66%
More in store
Overall
More online
About the same
1 Q: How do you think the way you shop for the upcoming seasonal holidays (e.g., Singles Day, Black Friday, Christmas) may change compared with last year? Rated from 1 “shop significantly more in-store/in-person” to 5 “shop significantly more
online.” Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to spend more in store from the % of respondents stating they expect to spend more online.
Holiday shopping channel preference1
% of respondents
Two out of three consumers expect to shift to online for holiday
shopping
New holiday outlook
26%
11%
Gen Z
53%
21%
Millennials
71%
17%
12%
68%
21%
Gen X
51%
36%
13%
Baby Boomers
53 59 57 38
Overall By generation
~88%
of Millennials plan
to do as much or
more of their
holiday shopping
online
Net online
intent2 32

Disclaimer
McKinsey does not provide legal, medical, or other regulated advice or
guarantee results. These materials reflect general insight and best practice
based on information currently available and do not contain all of the
information needed to determine a future course of action. Such information
has not been generated or independently verified by McKinsey and is
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McKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisis

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