Consumer Confidence Falls in August but Stays Optimistic
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JAKARTA, Investortrust.id — Bank Indonesia reports that Indonesia’s Consumer Confidence Index fell to 117.2 in August 2025, down 0.9 points from 118.1 in July. The index remained in the optimistic zone, defined as readings above 100, signaling that households were still confident even as spending momentum showed signs of weakening.
Director Executive of Bank Indonesia’s Communication Department Ramdan Denny Prakoso said on Wednesday, Sept 10, 2025, that consumer confidence in August was supported by the Current Economic Condition Index at 105.1 and the Consumer Expectation Index at 129.2, both staying above the optimism threshold. An index level below 100 is considered pessimistic, reflecting contraction in sentiment.
The Current Economic Condition Index eased from 106.6 in July, while the Consumer Expectation Index edged down 0.4 points from 129.6.
By expenditure group, sentiment weakened among households earning Rp 1–2 million, which dropped six points to 102.9, those with Rp 2.1–3 million, down 4.5 points to 108.1, and the Rp 4.1–5 million bracket, down 2.7 points to 117.2. Confidence improved in the Rp 3.1–4 million group, up 0.8 points to 116.9, and among households earning above Rp 5 million, up 1.4 points to 120.9.
Consumer confidence was also shaped by mixed performance across sub-indices. The Income Index stood at 116.9, while the Durable Goods Purchase Index reached 105.1, both in optimistic territory. However, the Job Availability Index fell to a pessimistic 93.2, highlighting lingering concerns about employment opportunities.
By education level, respondents with university and postgraduate degrees remained optimistic, with readings of 103.7 and 111.7, respectively. High school graduates scored 88.2, and diploma holders came in at 97.5, both in the pessimistic range.
Spatially, confidence levels diverged. Cities such as Semarang, Medan, and Mataram recorded sharper declines, while Bandar Lampung, Bandung, and Pangkal Pinang posted gains.
Bank Indonesia also observed shifts in household income allocation. The share of income spent on consumption declined in several groups, including 76.5 percent for households earning Rp 1–2 million and 73.9 percent for those earning Rp 3.1–4 million.
At the same time, the proportion allocated to loan repayments increased, rising to 9.6 percent for the Rp 1–2 million group and 12.1 percent for the Rp 3.1–4 million group.
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