Consumer sentiment is one of the clearest signals of economic resilience. At the close of 2025, Bank Indonesia’s survey showed optimism among households remained high, despite global uncertainties. This confidence reflects steady job availability, rising income expectations, and a healthy balance between spending and saving.
Key Facts & Background
Consumer Confidence Index (CCI):
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- Recorded at 123.5 in December 2025, well above the neutral level of 100, indicating optimism.
- Slightly lower than November’s 124, but still supported by strong fundamentals.
Current Economic Conditions Index (IKE):
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- Stood at 111.4, reflecting positive perceptions of job availability and durable goods purchasing power.
- Improvement in employment indicators was a key driver.
Consumer Expectations Index (IEK):
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- Reached 135.6, showing strong optimism for the next six months.
- Driven by higher expectations of income growth and better business conditions in early 2026.
Household Financial Behavior:
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- Average propensity to consume (APC) was 74.3%, showing robust spending activity.
- Saving ratio rose to 14.9%, indicating stronger household financial discipline.
- This balance supports both economic circulation and household resilience.
Sectoral Implications:
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- High confidence benefits retail, banking, property, and automotive sectors.
- Optimism in income and employment often precedes increased demand for housing, vehicles, and financial services.
Regional Variations:
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- Some areas, such as Medan and Padang, saw weaker confidence due to local disruptions like natural disasters.
- National sentiment, however, remained broadly positive.
Strategic Insights
The strong consumer confidence at the end of 2025 underscores Indonesia’s resilience in navigating global and domestic challenges. Optimism about job availability and income growth suggests that households are prepared to sustain consumption while also building financial buffers. This dual behavior—spending to support demand while saving for security—creates a stable foundation for economic growth. For policymakers, the survey signals that maintaining employment opportunities and supporting household purchasing power will be critical in sustaining momentum into 2026.