DOES THE COVID-19 PANDEMIC AFFECT PERSONAL FINANCIAL DECISIONS IN THE NEW NORMAL ERA. A VULNERABILITY PERSPECTIVE IN INDONESIA THESIS In partial fulfilment of the requirements for the Degree of Master of Science in Management from Institut Teknologi Bandung By NURUN NAJMI Student ID: 29022029 (Master Program of Science in Management) INSTITUT TEKNOLOGI BANDUNG January 2024 ii ABSTRACT DOES THE COVID-19 PANDEMIC AFFECT PERSONAL FINANCIAL DECISIONS IN THE NEW NORMAL ERA. A VULNERABILITY PERSPECTIVE IN INDONESIA By Nurun Najmi Student ID: 29022029 (Master Program of Science in Management) The study aims to empirically test a comprehensive model of changes in personal financial decisions, which includes changes in consumption, savings, investment, and spending on charity. This study examines the collective impact of various factors, including personality traits, pandemic-related perceptions and attitudes, social media usage, religiosity, and financial attributes on vulnerability and changes in financial decisions as the world transitions from the COVID-19 pandemic to the new normal period. Responses from 377 participants who are Indonesian citizens living in Indonesia and aged 17 years or over are collected through distributing online survey questionnaires. Relationships between variables are analyzed using a structural equation modeling (SEM) approach. Additionally, this study extends its analytical approach by using statistical difference tests—specifically, Mann-Whitney, Kruskal- Wallis, and Wilcoxon tests—to provide additional insights. The results of this research show a fundamental shift in financial decision from the Covid-19 to the new normal period. This research confirms that vulnerability is a shared experience that transcends demographic boundaries, thereby impacting all individuals across demographic groups. This experience of vulnerability is influenced by personality traits, perceptions and attitudes related to the pandemic, social media usage, financial planning and financial situation. Analysis of the relationship between construct variables also reveals a significant influence between vulnerability due to the pandemic and changes in consumption, savings, and investment. On the contrary, different results are found, which revealed no significant influence of the vulnerability experienced by individuals on changes in spending on charities. In addition, the indirect effects of personality traits, pandemic-related perceptions and attitudes, social media usage, and financial attributes on changes in personal financial decisions emphasize the critical role of the individual's experience of vulnerability. The results of this research provide theoretical and practical implications that can be useful for the government, policymakers, financial industry players, and society. Keywords: COVID-19 Pandemic, New Normal, Vulnerability, Change in Financial Decisions, Structural Equation Modeling (SEM). iii ABSTRAK APAKAH PANDEMI COVID-19 MEMPENGARUHI KEPUTUSAN KEUANGAN PRIBADI DI ERA NEW NORMAL. PERSPEKTIF KERENTANAN DI INDONESIA Oleh Nurun Najmi Student ID: 29022029 (Program Studi Magister Sains Manajemen) Studi ini bertujuan untuk menguji secara empiris model komprehensif tentang perubahan keputusan keuangan individu, yang mencakup perubahan konsumsi, tabungan, investasi, dan pembelanjaan untuk amal. Studi ini mengkaji dampak kolektif dari berbagai faktor, termasuk ciri-ciri kepribadian, persepsi dan sikap terkait pandemi, penggunaan sosial media, religiusitas, dan atribut keuangan, terhadap kerentanan dan perubahan keputusan keuangan seiring transisi dunia dari periode pandemi Covid-19 ke new normal. Tanggapan dari 377 partisipan yang merupakan Warga Negara Indonesia yang tinggal di Indonesia dan berusia 17 tahun atau lebih dikumpulkan melalui penebaran kuesioner survey online. Hubungan antar variabel dianalisis menggunakan pendekatan pemodelan persamaan struktural (SEM).