Consumer sentiment remained in optimistic territory in June despite softening from the previous month, suggesting households remain confident but increasingly cautious about the economic outlook.
Indonesia’s consumer confidence remained resilient in June 2026, even as optimism moderated from the previous month. According to Bank Indonesia (BI), the Consumer Confidence Index (CCI) stood at 117.8, remaining comfortably above the 100-point threshold that indicates optimism, although lower than 120.9 recorded in May.
The decline suggests that Indonesian households are becoming more cautious amid global economic uncertainty, higher borrowing costs, and softer domestic demand. Nevertheless, consumers continue to view both current economic conditions and the six-month outlook positively, indicating that confidence in the broader economy remains intact.
Key Facts
- Consumer Confidence Index (June 2026): 117.8
- Previous month: 120.9
- Current Economic Conditions Index (CECI): 109.2
- Consumer Expectations Index (CEI): 126.4
- Optimism threshold: Index above 100
Bank Indonesia noted that both the Current Economic Conditions Index and the Consumer Expectations Index remained in optimistic territory despite easing from May. Households continued to report confidence in income prospects, job availability, and future business conditions, although perceptions weakened slightly as economic activity moderated after the Eid holiday period.
Consumer confidence is closely watched because household consumption accounts for more than half of Indonesia’s gross domestic product. A resilient CCI therefore provides an important signal that domestic demand—the country’s primary growth engine—remains supportive even as manufacturing activity has softened and external trade faces increasing headwinds. Recent data showing a contraction in manufacturing PMI and Indonesia’s first monthly trade deficit in six years underscore the importance of maintaining healthy consumer spending.
The survey suggests that consumer demand is unlikely to weaken sharply in the near term, benefiting sectors such as retail, consumer goods, banking, and services. However, the moderation in sentiment serves as a reminder that confidence is becoming more measured rather than accelerating. Sustaining household spending will depend on stable inflation, labor market conditions, and continued policy support. If those fundamentals remain intact, domestic consumption should continue to provide a buffer against an increasingly uncertain global economic environment.