Worry about jobs, spending power hurts consumer confidence
Bank Indonesia’s retail sales index also dropped sharply in June, but the central bank sees improvements next month.
Consumer confidence in Indonesia has slipped for the third consecutive month, casting doubt on the nation's economic outlook. The Consumer Confidence Index (CCI) plunged from 117.8 points in June to 116.8 points in July, marking its lowest point since September 2025. This decline follows a peak of 127 points in January, with a brief 0.1-point increase in April due to heightened holiday spending.
Despite this downward trend, the CCI remains above the 100-point threshold, indicating a generally optimistic sentiment among consumers.
However, the latest reading suggests growing pessimism as the current economic conditions index declined by 1.3 points to 107.9, and the consumer expectations index slipped to 125.7 from 126.4. These indices, while still optimistic, reflect a weakening in job availability and business expectations. Bank Indonesia spokesperson Ramdan Denny Prakoso explained that consumer confidence in July was buoyed by relatively optimistic economic conditions and expectations, yet job availability and business outlooks continue to pose challenges.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
