Consumer sentiment in Indonesia held firm in August 2025, reflecting resilience amid evolving economic conditions. According to Bank Indonesia’s latest Consumer Survey, the Consumer Confidence Index (CCI) stood at 117.2, well above the optimistic threshold of 100.

The report highlights that Indonesian households continue to express faith in both current and future economic prospects, providing a crucial signal for policymakers and investors.

Consumer confidence remained supported by two key indicators: the Current Economic Condition Index (IKE) and the Consumer Expectation Index (IEK).

The IEK—representing expectations for the next six months—was recorded at 129.2, only marginally lower than July’s figure of 129.6, indicating steady forward-looking optimism.

While the present conditions saw a slight weakening, the broader sentiment remained positive. The IKE, which gauges consumers' perception of current economic conditions, declined slightly to 105.1 from 106.6 in the previous month.

Despite this dip, the IKE remains above the neutral level, signaling continued consumer willingness to spend and engage in economic activity.

The August 2025 data affirms that consumer confidence in Indonesia remains intact, driven by optimism about future economic performance. Both indexes—IEK and IKE—continue to signal positive sentiment, serving as critical indicators for business leaders, central bankers, and government stakeholders shaping economic policy.

PHOTO: FREEPIK

This article was created with AI assistance.