Consumer sentiment in Indonesia remains firmly optimistic as of September 2025, reflecting continued trust in the nation’s economic trajectory. Despite slight month-on-month declines, key indicators suggest households are confident about current conditions and future prospects. This stability offers a crucial buffer against global uncertainties and supports domestic demand.
Key Facts & Background
- Bank Indonesia’s Consumer Survey for September 2025 shows the Consumer Confidence Index (CCI/IKK) at 115.0, indicating optimism (index >100).
- The index is supported by two subcomponents:
- Current Economic Conditions Index (IKE): 102.7
- Consumer Expectations Index (IEK): 127.2
- Both IKE and IEK remain above the optimism threshold, although slightly lower than August 2025 figures (IKE: 105.1, IEK: 129.2).
- The survey reflects consumer perceptions of employment, income, and purchasing conditions, as well as expectations for economic growth, job availability, and income stability.
- The CCI is a leading indicator used by policymakers and businesses to gauge household sentiment and predict consumption trends.
Strategic Insights
The sustained optimism in Indonesia’s consumer confidence index underscores the resilience of domestic sentiment amid a complex economic landscape. While global headwinds—such as inflationary pressures, geopolitical tensions, and financial market volatility—continue to challenge many economies, Indonesia’s households appear cautiously optimistic. This confidence is critical, as private consumption accounts for more than half of Indonesia’s GDP and serves as a key driver of growth.
The slight dip in both IKE and IEK compared to the previous month suggests consumers are aware of short-term challenges but remain hopeful about medium-term recovery. This sentiment aligns with broader macroeconomic indicators, including stable inflation, improving credit growth, and targeted fiscal stimulus. The government’s efforts to maintain food price stability, support labor-intensive sectors, and inject liquidity into the banking system likely contribute to this sustained optimism.
From a policy perspective, the CCI offers valuable insights into the effectiveness of economic interventions. A high expectations index (IEK) signals that consumers anticipate better conditions ahead, which can translate into increased spending, investment, and economic activity. Policymakers can leverage this momentum by reinforcing confidence through transparent communication, targeted subsidies, and continued support for employment and income generation.
For businesses, stable consumer confidence provides a foundation for strategic planning. Retailers, manufacturers, and service providers can anticipate steady demand and adjust inventory, pricing, and marketing strategies accordingly. Moreover, sectors tied to discretionary spending—such as tourism, automotive, and electronics—may benefit from the upbeat sentiment, especially if supported by financing and promotional incentives.