Indonesia’s Millennials and Gen Z are shaping the future of digital consumption, driving trends across e-commerce, fintech, entertainment, and social commerce. Representing over 36.89% of Indonesia’s middle class, these generations are tech-savvy, digitally connected, and highly influential in purchasing decisions (Indonesia Millennial & Gen Z Report 2025, IDN)
As digital adoption accelerates, brands must evolve to meet these consumers where they are: on social platforms, engaging with content in new ways, and seeking brands that resonate with their values. Understanding how to engage these younger generations, their preferences for social-driven commerce, and what strategies will convert them into loyal customers is essential.
Social Media: The New Shopping Destination
Social media is no longer just a place for entertainment—it has become a primary driver of purchasing decisions. Indonesian Millennials and Gen Z rely on TikTok, Instagram, and YouTube to discover products, compare reviews, and make purchasing choices. In fact, 82% of Indonesian consumers have purchased products based on influencer recommendations, highlighting the effectiveness of digital word-of-mouth marketing.
The growth of social commerce is a testament to this shift. Global social commerce sales are expected to reach $1.3 trillion by 2025, with Indonesia as one of the key markets leading the trend.
Brands must embrace short-form video content, influencer collaborations, and live shopping experiences to remain relevant. Investing in user-generated content (UGC) and community engagement will enhance authenticity and consumer trust.
Influencer Marketing: Building Trust and Credibility
As traditional advertising loses its effectiveness, consumers are turning to influencers for recommendations. Trust in nano and micro-influencers has increased by 3% year-over-year, proving that authentic, relatable voices have more impact than polished celebrity endorsements.
Micro-influencers (with 10K-50K followers) are particularly effective in driving engagement and establishing brand credibility, especially in niche markets. While mega-influencers can deliver broad reach, they are less effective at building long-term, community-driven relationships.
For optimal results, brands should prioritize long-term influencer partnerships rather than one-off promotions. Performance-based influencer campaigns, where influencers earn commissions on sales, offer a more measurable return on investment (ROI) and foster deeper brand loyalty.
Fintech & Digital Payments: The Shift Away from Cash
Digital payments are rapidly replacing traditional transactions, making fintech solutions an essential part of consumer spending. 60% of Millennials and 58% of Gen Z in Indonesia use mobile banking, while e-wallet adoption has surged, with 79% using OVO and 88% using GoPay.
“Paylater” services have become particularly popular among Millennials for essential expenses and Gen Z for lifestyle purchases, including fashion, gadgets, and travel. The leading fintech lending platforms, Akulaku (33%), Kredivo (20%), and Easycash (18%), continue to grow in adoption.
Offering “Buy Now, Pay Later” (BNPL) options, integrating seamless e-wallet transactions, and partnering with fintech platforms will enhance the overall shopping experience and drive higher conversions.
Nostalgia & Entertainment: Engaging Emotions for Stronger Connections
Nostalgia marketing is an effective emotional engagement strategy, especially among Indonesia’s younger generations. 70% of Millennials and Gen Z feel emotionally connected to nostalgic content, with music (68%) and movies (70%) being the most popular categories.
The annual Pestapora music festival, which celebrates both past and present music, draws over 120,000 attendees, further proving the enduring power of nostalgia-driven experiences. Moreover, TikTok’s algorithm shift toward longer, storytelling-based content presents brands with new opportunities to incorporate nostalgia into campaigns through more interactive formats.
Brands should consider leveraging nostalgia through themed advertisements, influencer collaborations, and interactive storytelling. Partnering with entertainment platforms, live events, and incorporating retro-style branding can help deepen emotional connections and build brand loyalty.
Winning Strategies for Success
To successfully capture Indonesia’s Millennials and Gen Z, brands need to implement data-driven, multi-channel marketing strategies that prioritize authenticity and engagement.
- Emphasize Authenticity–Align with values that matter to younger consumers, such as sustainability, inclusivity, and mental well-being.
- Leverage AI-Powered Personalization–Utilize AI-driven analytics to refine targeting, improve engagement, and maximize conversions.
- Implement a Multi-Channel Approach –Seamlessly integrate social media, fintech solutions, influencer marketing, and live commerce strategies for an optimized consumer journey.
Ready to engage with Indonesia’s next-generation consumers? Contact MOCA at business@moca-tech.net.