Consumer Optimism in Indonesia Strengthens in July 2025, BI Survey Finds
Main Takeaways
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JAKARTA, Investortrust.id — Consumer confidence in Indonesia continued to strengthen in July 2025, according to the latest survey from Bank Indonesia, with optimism fueled by improved expectations for income and job opportunities.
Bank Indonesia reported that the Consumer Confidence Index (CCI) rose slightly to 118.1 in July, up from 117.8 in June, maintaining its position above the optimism threshold of 100.
“The improvement in consumer confidence this month stems from consumers’ steady views on current economic conditions and growing optimism about the economic outlook,” said Bank Indonesia Communication Department Executive Director Ramdan Denny Prakoso on Friday, Aug. 8.
The upward trend was mainly driven by the Consumer Expectations Index (CEI), which climbed to 129.6 from 128.9 a month earlier. The index reflects consumers' future outlook on income, job availability, and business activity.
Expectations Fuel Spending Sentiment
The July survey highlighted particularly strong gains in two components of the CEI: the Income Expectations Index and the Job Availability Expectations Index, which rose to 136.4 and 125.0 respectively, compared with 133.2 and 124.1 in June.
However, the Business Activity Expectations Index posted a slight decline, falling to 127.5 from 128.0, though it remained well within optimistic territory.
On a regional basis, the strongest gains in the CEI were recorded in the cities of Manado, Pontianak, and Semarang. Meanwhile, Medan, Mataram, and Surabaya saw the steepest declines.
The Current Economic Condition Index (CECI) stayed relatively flat at 106.6 in July, compared with 106.7 in June. Two components underpinned the stability: the Current Income Index, which rose to 117.8, and the Durable Goods Purchase Index, which stood at 106.6.
Spending Trends Shift Slightly
The survey also revealed a shift in household spending behavior. The average share of income allocated to consumption rose to 75.4% in July, up from 75.1% the previous month. Meanwhile, the share of income saved declined to 13.7% from 14.1%.
The proportion of income used for debt repayment remained steady at 10.9%.
In terms of income brackets, the strongest consumer sentiment came from respondents with monthly expenditures of Rp4.1 million to Rp5 million ($254 to $310), with a CCI reading of 119.9, followed closely by those spending more than Rp5 million ($310), at 119.5.
Among age groups, confidence was highest among respondents aged 31–40 years (122.3) and 20–30 years (121.7), suggesting stronger optimism among working-age adults.
Regionally, most cities recorded higher consumer confidence levels, especially Pontianak, Semarang, and Jakarta. However, confidence declined in Medan, Makassar, Surabaya, and Mataram.
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