Indonesia's sold-out concerts, higher 6.6 sales amid market uncertainty: Is 'lipstick effect' at play?
An economist says there are signs of the "lipstick effect", whereby consumers continue spending on small luxuries while forgoing bigger-ticket purchases like homes in challenging economic times.
Members of the K-pop boy group BTS (from left) V, Jin, Jimin, Suga, Jungkook, J-Hope, performing during the BTS comeback concert at Gwanghwamun Square in Seoul on Mar 21, 2026. (Photo: Bighit Music and Netflix/AFP)
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JAKARTA: When Setiorini snagged tickets earlier this month to not one, but two, BTS concerts in December, it was one of the happiest moments of her life.
The quest for tickets to the K-Pop sensation’s performances are a test of strategy, mental endurance, luck – and spending power. Lower-tier tickets for the BTS World Tour ARIRANG concerts in Jakarta and Singapore each cost 2 to 3 million rupiah (US$112.50 to US$169).
Setiorini, an employee at a government ministry, acknowledged the amount she paid for BTS' Dec 19 concert in Singapore and Dec 27 concert in Jakarta was disproportionate to her monthly income.
The 35-year-old declined to disclose how much she earns, but estimated she would need to set aside about 30 per cent of her monthly salary for four months in order to pay for her concert trip to Singapore.
She decided to use a credit card for the expense.
Like Setiorini, fellow Jakarta resident Anisa Tiarani did not hold back when she visited brightspotCITY 2026, a creative festival featuring fashion, food and lifestyle products, in May and June.
The 30-year-old, who has attended the festival thrice, spent around 2 million rupiah on five fashion items on her latest outing, the highest amount she has spent there.
"The event … brought together so many good local brands. There were accessories, shoes and food too. I could get everything in one place," she gushed.
Spending millions of rupiah on concert tickets or fashion is hardly a small expense for many Indonesians, especially amid economic uncertainty.
The rupiah is trading at near-historic lows against the US dollar, while the Jakarta Composite Index has declined by nearly 30 per cent this year.
Some consumers were hit when the government raised prices of Pertamax, Indonesia’s non-subsidised RON92 gasoline, by over 30 per cent on Jun 10.
Meanwhile, economists have said the central bank’s recent intervention to stabilise the rupiah, by raising interest rates by 100 basis points over the past four weeks, could impact consumers if mortgage rates, consumer credit and working capital loans also rise.
But Setiorini and Anisa’s accounts, as well as data from shopping platforms, malls and festival organisers, suggest Indonesian consumers are continuing to spend on entertainment and lifestyle.
An expert says this could be signs of a phenomenon often referred to as the "lipstick effect", whereby consumers continue spending on small luxuries while forgoing bigger-ticket purchases like homes in challenging economic times.
While the phenomenon remains tricky to determine definitively – with Indonesia’s economy still growing – the economist suggested the authorities could further examine underlying factors behind such spending behaviour. Consumers, on their part, should not spend beyond their means, he cautioned.
APPETITE FOR ENTERTAINMENT
The term "lipstick effect" was popularised by Leonard Lauder, former chairman of The Estée Lauder Companies, who noticed higher lipstick sales following the Sep 11 terror attacks in 2001, when the US economy weakened.
The phenomenon arises from people’s need for "small pockets of happiness through entertainment because they have become discouraged about being able to save enough to buy a house or finance their children's education", Bhima Yudhistira, executive director of the Center of Economic and Law Studies (CELIOS), told CNA.
To be sure, Indonesia’s government has said economic fundamentals remained strong in the first quarter of 2026.
The economy grew 5.11 per cent in 2025, and Statistics Indonesia said growth in the first quarter of 2026 was 5.61 per cent compared to the same period in 2025.
Household consumption accounted for over half of Q1’s national economic expenditure in 2026, and public purchasing power remained stable, Statistics Indonesia said in May.
In contrast to the mixed views and data on Indonesia’s economy, currency and markets, however, the public’s appetite for entertainment is clear.
On Friday (Jun 19), ARMY Membership Presale ticket sales for the third day of the BTS World Tour ARIRANG in Jakarta saw more than 960,000 people in the online queue.
Earlier in June, general ticket sales for the group’s first and second Jakarta concerts sold out within 10 minutes, with online queues reaching around 700,000 people.
In April, tickets for South Korean-Chinese boy band EXO's Jakarta concert were also sold out in less than an hour, attracting a queue of more than 180,000 people.
Beyond concerts, the data on consumer spending, both online and offline, is also positive.
Lazada, one of Indonesia’s largest e-commerce platforms, recorded a 52 per cent increase in average customer spending during its Lazada 6.6 Super WOW Sale compared to the same period last year.
Notably, the strongest growth was in fashion and electronics. In a statement to CNA, Lazada said electronics sales rose fourfold, while fashion sales jumped sixfold compared with non-sale days.
As for offline shopping, Anton Wirjono, founder of brightspotMRKT and organiser of brightspotCITY 2026, said 216,000 people visited the two-week festival at Agora Mall in central Jakarta.
Featuring 251 tenants across fashion, food, sports and creative brands, the event recorded a 74 per cent increase in sales transactions compared to the previous Brightspot festival, said Anton. He declined to disclose total sales figures.
"The previous event attracted 175,000 visitors. This time we had 216,000. In terms of scale, this has become our biggest event yet," said Anton, who has organised the creative festival for 17 years.
Meanwhile, Indonesian Shopping Center Management Association (APPBI) chairman Alphonzus Widjaja said mall foot traffic remains relatively stable, even though the retail industry is currently entering its low season following the Ramadan and Hari Raya Idulfitri shopping peak at the end of March.
"Regardless of the circumstances, Indonesians continue to visit shopping centres," he told CNA.
EMOTIONAL AND SOCIAL FACTORS BEHIND SPENDING
The concert craze and shopping statistics do not necessarily mean people have more disposable income, according to Bhima, who said they may instead reflect a tendency for escapism or short-term satisfaction during difficult economic times.
"The middle class is spending on tertiary goods because even primary needs are becoming harder to fulfil," Bhima said.
Consumers agreed there were emotional and social drivers behind the spending patterns.
Setiorini said she decided to use credit to pay for BTS concert tickets because the K-pop group has been "present throughout many phases of my life, including moments when I felt exhausted, lost motivation or doubted myself".
"For me, this is a form of self-reward after working hard for many years. I work, I save and I plan everything carefully. So I don't see it as wasteful spending," she added. Setiorini, who plans to start repaying her credit card debt over three months from next month, said it was interest-free for a year.
For Anisa, who regularly attends fashion events such as Brightspot, spending on fashion items does not disrupt her financial plans because she sets aside a dedicated budget for such purchases.
"The money I spend on clothes or other items comes from funds that I specifically set aside. It doesn't affect allocations for other things such as investments," she said.
Alphonzus from Indonesian Shopping Center Management Association said mall visitor numbers remain stable partly because they also function as social spaces.
"Indonesians have a culture of enjoying gatherings and spending time together," he said.
The weaker rupiah could also prompt a shift in travel patterns by causing some upper- middle class consumers to travel domestically, said Indonesian Hotel and Restaurant Association (PHRI) secretary-general Maulana Yusran.
"People may no longer travel abroad. They will still spend money on holidays, but they will do so within Indonesia," he said.
But this may benefit only Java and Bali islands, which have stronger connectivity and larger populations, he said.
"People from Jakarta and surrounding areas may only holiday within Java. But what about Sumatra, Kalimantan, Sulawesi and eastern regions such as Papua? Airports there are quiet," he said.
The slowdown in inter-island travel has begun to weigh on hotels and restaurants outside major tourism centres, forcing businesses to implement cost-cutting measures and reduce employee working hours, Maulana said.
"That decline in mobility naturally affects restaurants as well. That's what we're seeing."
EXPERT ADVISES PRUDENCE
While consumption helps to spur the economy, Bhima cautioned against excessive spending, particularly when purchases are financed through debt.
He highlighted the rapid growth of Buy Now Pay Later (BNPL) services. As of April 2026, banking-sector Buy Now Pay Later (BNPL) lending grew 37.29 per cent year-on-year to 29.3 trillion rupiah, with the number of accounts reaching 31.76 million, according to a Financial Services Authority (OJK) statement on Jun 5.
According to Bhima, the trend reflects unhealthy financial behaviour that could create problems in the future. He urged consumers to reduce impulse spending and avoid being tempted by lending promotions.
The phenomenon, he added, is likely to fade once economic conditions improve and people regain confidence in pursuing long-term financial goals.
"When the economy starts improving again, people will return to focusing on buying homes. They will return to focusing on purchasing vehicles," Bhima said.
Data from Bank Indonesia's latest residential property price survey showed primary residential property sales fell 25.67 per cent year-on-year in the first quarter of 2026, reversing growth of 7.83 per cent in the previous quarter.
Residential property prices in the same period grew 0.62 per cent year-on-year, suggesting subdued demand.
The Association of Indonesian Automotive Industries (Gaikindo) has said auto industry players are currently under pressure from declining purchasing power. Gaikindo secretary-general Kukuh Kumara said in January that car prices have increased by 7.5 per cent annually but "potential buyers'" incomes have grown by only 3 per cent.
Wholesale car sales of 803,687 units in 2025 were a decrease of 7.2 per cent from 2024’s 865,723 units, according to Gaikindo data.
Retail car sales (from dealers to consumers) of 833,692 units were a 6.3 per cent decrease from 2024. GAIKINDO remains optimistic about the prospects for a recovery this year.
Bhima cautioned policymakers not to assume crowded shopping centres or strong consumer spending means the economy is in good shape.
"We should not interpret crowds as proof that the economy is doing fine. We need to examine more critically what lies behind this spending behaviour," he said.
Additional reporting by Kiki Siregar
