Indonesian Consumer Confidence Edges Up in October, but Weakness Lingers Among Upper and Lower Income Brackets

JAKARTA, Investortrust.id — Indonesian consumer confidence rebounded slightly in October after dipping the previous month, as improving household assessments of current incomes and stronger economic expectations over a six-month horizon offset lingering caution in big-ticket discretionary spending.

Bank Indonesia’s Consumer Confidence Index (IKK) climbed to 119.9 in October from 118.1 in September, remaining comfortably above the 100-point threshold that separates optimism from pessimism. The monthly improvement underscores resilient domestic sentiment across middle-income households, even as spending appetite among higher-income earners cooled and lower-income families continued to struggle with current living costs.

“Consumer optimism was bolstered by improved perceptions of current economic conditions alongside strengthening expectations for the economy moving forward,” said Ramdan Denny Prakoso, executive director of Bank Indonesia's communication department, in an official statement on Monday.

Income Tiers Diverge on Living Costs and Big-Ticket Purchases

While confidence advanced across most income demographics, the survey revealed notable structural divergence between income groups. The index for upper-income households with monthly spending exceeding Rp 5 million slipped to 123.0 in October from 123.5 in September, marking the only expenditure bracket to register a month-on-month decline in overall confidence.

Middle-income tiers led the rebound. The index for respondents spending between Rp 2.1 million and Rp 3 million rose to 117.9, the Rp 3.1 million to Rp 4 million segment advanced to 117.2, and households spending between Rp 4.1 million and Rp 5 million edged up to 122.3. The lowest expenditure tier, covering households spending Rp 1 million to Rp 2 million monthly, registered a headline reading of 107.6.

However, granular sub-indices highlight acute pressures facing low-income earners. The Current Economic Condition Index (IKE) rose overall to 109.1 from September, driven by gains in the Current Income Index to 114.9 and the Job Availability Index to 105.5. Yet households in the Rp 1 million to Rp 2 million tier remained trapped in pessimistic territory on current conditions with a reading of 98.5.

That strain was most pronounced in big-ticket purchases. While the national Durable Goods Purchasing Index held steady at an optimistic 106.7, the lowest-income segment logged a depressed reading of 95.2, indicating continued reluctance or inability to commit to major non-essential expenditures amid household budget constraints.