Indonesian Consumer Confidence Weakens
Jakarta. A survey published by the central bank on Monday showed that Indonesians’ confidence in the economy had weakened, as pessimism grows among the biggest spenders.
Bank Indonesia has just published its monthly consumer confidence index, which measures how upbeat Indonesians are about their personal finances and the overall economy. An index of beyond 100 points reflects optimism. The February survey showed that the consumer confidence index hit 125.2 points, down from 127 the previous month.
“Indonesians’ perceptions of the current economic conditions had risen from 115.1 to 115.9 over the same period,” Bank Indonesia’s spokesman Ramdan Denny Prakoso said.
The respondents set lower expectations for the next six months. Their economic outlook fell sharply from 138.8 (January) to 134.4 (February). Doubt thickens over future job availability as the index declined by 3.4 points to 131.7 over the same period. Indonesians refuse to set high hopes for their future paycheck, as income expectations plummeted 5.3 points to 140.7.
The report grouped the respondents based on how much they spend each month. The top spenders — whose monthly expenses top Rp 5 million ($295) — were less optimistic. In early 2026, the group’s consumer confidence index reached 134.3 before dropping to 129.2. To find out how big the spending is, the minimum wage in Indonesia’s capital Jakarta stands at around Rp 5.7 million (around $336) this year.
Southeast Asia’s biggest economy registered 71.6% in the average propensity to consume ratio in February, down from 72.3% at the start of the year. This measures the portion of a person's income spent on goods and services. The average Indonesian sets aside 10.6% of their earnings to pay debt installments.
The results took into account responses from around 4,600 households spread across 18 cities, including Jakarta, Denpasar, and Manado. Bank Indonesia is set to publish the March report next month. The upcoming document will likely reflect Indonesia’s attitude towards the economic repercussions of the Iran war.
Indonesia's economy expanded 5.11% last year, but fell short of the government's 5.2% target. President Prabowo Subianto is confident that growth will top 5% this year as he remains in pursuit of an 8% expansion during his term.
Read More: Indonesia’s Budget Deficit to Near 4% of GDP if Oil Prices Top $100
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