Jakarta. Indonesia’s consumer confidence strengthened in August, with Bank Indonesia’s Consumer Confidence Index (ICC) rising to 118.5 from 116.8 in July, keeping sentiment firmly in optimistic territory.

“The Bank Indonesia Consumer Survey in August 2026 indicated that consumer confidence in economic conditions improved compared with July 2026,” BI Communication Department Head Ramdan Denny Prakoso said in an official statement received Wednesday.

Consumer confidence improved across most spending groups, with the highest ICC recorded among respondents spending more than Rp 5 million a month at 123.9. By age, respondents aged 20-30 posted the highest confidence index at 123.3.

Spatially, consumer confidence rose most sharply in Mataram, Bandung and Medan, while the steepest declines were recorded in Padang, Surabaya and Banten.

The Current Economic Conditions Index (IKE) also improved, rising to 109.4 in August from 107.9 in July.

The increase was driven by stronger perceptions of job availability and durable goods purchases. The Job Availability Index (IKLK) rose to 104.1 from 101.1, while the Durable Goods Purchase Index (IPDG) increased to 106.1 from 104.1.

The Current Income Index (IPSI) remained in optimistic territory at 118.

By region, IKE increased most in Bandung, Jakarta and Medan, while the largest declines were recorded in Padang, Surabaya and Manado.

Consumers Remain Optimistic on Future Conditions
Consumers also maintained strong expectations for the months ahead. The Consumer Expectations Index (IEK), which measures expectations for economic conditions over the next six months, rose to 127.6 in August from 125.7 in July.

All three components of the IEK increased. The Expected Income Index (IEP) rose to 134.9 from 133.6, the Expected Job Availability Index (IEKLK) to 125.7 from 123.1, and the Expected Business Activity Index (IEKU) to 122.1 from 120.4.

“Based on age groups, the highest index was recorded among respondents aged 20-30, at 123.8,” Ramdan said.

Expectations for income over the next six months remained optimistic across all spending groups. The index increased among respondents spending Rp 1-2 million, Rp 3.1-4 million and more than Rp 5 million, reaching 125.6, 134.3 and 141.7, respectively.

By age, the highest expected-income index was recorded among respondents aged 31-40 at 140.4, followed by those aged 20-30 at 138.6.

The strongest increases in IEK were recorded in Mataram, Semarang and Medan, while Padang, Bandar Lampung and Surabaya saw the largest declines.

Mixed Perceptions on Jobs and Durable Goods
Perceptions of current job availability improved among respondents with high-school and academy/diploma education, with indices of 100.5 and 108, respectively.

By age, job availability perceptions remained optimistic among respondents aged 20-40 and 51-60, while those aged 41-50 and above 60 remained pessimistic.

Meanwhile, the durable goods purchase index was optimistic among households spending more than Rp 3.1 million a month, while lower-spending groups remained pessimistic. The highest IPDG was recorded among households spending more than Rp 5 million, at 115.1.

By age, the highest durable goods purchase index was recorded among respondents aged 20-30 at 110.4, followed by those aged 31-40 at 106.5.

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