The Lipstick Effect in Indonesia’s Gen Z: How We Cope With Economic Uncertainty
The pressures now go far beyond lipstick
The economy is not doing well right now. Currency depreciation, geopolitical conflicts, and growing uncertainty have left many people wondering when this storm will finally end.
In Indonesia, economic insecurity can be seen through the weakening rupiah against the U.S. dollar, which gradually rose from around Rp17,334/USD at the beginning of May 2026 to approximately Rp17,703/USD by the end of August.
Some of us may already feel the effects. Others fear that our turn is coming soon.
The degree may differ from person to person, but one thing is clear: this is not a comfortable situation for anyone. Businesses are under pressure, layoffs are becoming a growing concern, living costs continue to rise, and many people feel increasingly insecure about the future.
But if we are being honest, most of these problems are beyond our control.
We are not government officials. We are not central bankers. We are not world leaders negotiating geopolitical conflicts. We are not wealthy investors benefiting from economic instability.
Yet even if we cannot control these conditions, they still affect us psychologically.
Economic anxiety changes how people behave. It makes people emotionally exhausted. In moments like this, humans do not always make rational decisions. Instead, we look for ways to cope. We search for small moments of comfort that we are still doing okay.
When long-term financial security feels increasingly unreachable, short-term emotional rewards start to feel more rational. This is where the phenomenon of the “the lipstick effect ” begins to appear.
The term “lipstick effect” became popular during the 2000-2001 recession in the United States after Leonard Lauder of Estée Lauder observed an interesting trend: while sales of luxury goods declined during the economic downturn, lipstick sales actually increased.
Financial advisors may tell us to save more money, reduce unnecessary spending, avoid credit cards or pay-later services, and create additional income streams.
Those suggestions are not wrong.
But humans are emotional beings. When people are under pressure, they do not always respond by restricting themselves even more. They try to protect their emotional well-being, and sometimes even search for social validation to maintain confidence. And that provides a dopamine hit and emotional relief.
Gen Z is already experiencing a modern version of the “lipstick effect,” but the pressures go far beyond lipstick alone. The situation facing Gen Z today is far more amplified than it was in the early 2000s.
Back then, there was no social media ecosystem constantly encouraging comparison. Online shopping was not as frictionless as it is now. Digital payment systems, online lending apps, and buy-now-pay-later services were not as integrated into everyday life as they are today.
Social media has become a stage for performative consumption. Through posts, stories, and short videos, people receive validation for the appearance of living a desirable lifestyle.
At the same time, social media has also become one of the primary sources of news consumption for Gen Z. Every day, we scroll through headlines about inflation, rising commodity prices, weakening purchasing power, and political decisions that often feel disconnected from public reality.
And within that very same space, we are also offered “temporary solutions” through sponsored products, influencer endorsements, live shopping features, and endless targeted advertisements.
For financially secure Gen Z individuals, consumption may temporarily soften the impact of weakening purchasing power and a slowing economy. But for those already struggling with unstable jobs, lack of income, and limited savings — the pressure becomes far more dangerous.
Because, despite financial insecurity, people still feel the need to prove: “I am doing okay too.”
Aesthetic coffee shops remain crowded with young people. Concert tickets are still selling out. Hotels and tourist destinations are still packed during holidays. Online shopping transactions continue to grow.
Gen Z may not appear to be struggling.
But, are we actually being misled by the lipstick effect of Gen Z?
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Do we realize the existence of online lending apps and buy now pay later (BNPL) services?
These impulsive and emotionally driven purchases are often financed through debt.
And this is already happening.
In Indonesia, people aged 19-34 (including younger millennials and older Gen Z) accounted for around 48.65% of non-performing online loans as of March 2026.
With outstanding online lending debt reaching approximately Rp101.03 trillion in March 2026, the non-performing loan (NPL) ratio in fintech lending rose to approximately 4.5% in early 2026, almost doubled than the previous year.
Can we still pretend this is not worrying?
I am part of Gen Z myself, so I am not writing this to only judge my own generation. Yes, we should try to be more mindful about our consumption whenever possible. But I also want to explain the external factors that make us more vulnerable to consumerism.
Today, many of us live in an era where we spend more time staring at screens than socializing with other people. This has contributed to rising anxiety and loneliness.
At the same time, increasing screen time makes people far more exposed to advertisements, social comparison, influencer culture, and eventually impulsive buying.
And it is hard to avoid, as there are very few activities for idle time besides opening our phones and scrolling through social media.
Why? Because it is cheaper, easier, and requires less energy.
That is only one part of the problem.
The other problem is the lack of free and accessible public spaces or third spaces where people can genuinely interact with others, engage in physical activities, and spend less time online.
For example, joining a fun run costs money, meeting friends at a café usually means buying something, and even sitting in a park often leads to purchasing drinks or snacks.
Yes, there are places like libraries, museums, and public parks that are relatively affordable or free, but transportation costs are still required to get there.
In many ways, it feels like we are trapped.
Staying at home leads to increasing screen time, exposure to negative news, emotional exhaustion, and eventually impulsive online shopping. But when we feel stressed or overwhelmed at home, going outside to refresh ourselves also requires money for transportation, food, drinks, and paid activities.
Finding a middle ground becomes difficult unless someone has extremely strong self-awareness and discipline.
I cannot say much either, because I need to be honest that I am also vulnerable and often find myself trapped in consumerist culture too.
What I can say, however, is that we need to ask ourselves: where is the stress actually coming from? And once we recognize the real source, we should try to address it directly instead of searching for emotional escape through consumption.
If negative news is making us anxious and pushing us toward emotional spending, just mute news accounts on social media for a while. If curated lifestyles from friends and influencers make us feel inadequate, just mute or even unfollow those accounts.
Perhaps, more radically, we need social media detoxes, e-commerce detoxes, or even smartphone detoxes.
I know. It feels boring.
But at least we still have choices beyond blindly following “the lipstick effect.”
Because ultimately, the only people who can truly examine our financial health, our vulnerability to anxiety and loneliness, and the severity of our consumerism are ourselves.
