Religious Holidays Expected to Boost Consumer Confidence: Govt

RRI.CO.ID, Jakarta - The surge in public spending during school holidays and a series of religious celebrations is expected to boost consumer optimism early this year.

Deputy Chair of the National Economic Council (DEN) Mari Elka Pangestu said this momentum would strengthen the Consumer Confidence Index (CCI) in the first quarter of 2026.

Mari Elka referred to Bank Indonesia (BI) data showing that the CCI peaked at 127.2 in January 2025, fell to 115 in September, and rebounded to 123.5 in December before reaching 127 in January 2026.

She projected that the positive trend could continue, supported by theChinese New Year, Nyepi, and Eid al-Fitr. “Timely disbursements and government spending must accompany this,” she said in Jakarta on Thursday, February 19, 2026, as quoted by Antara.

She reminded that the national economy relies heavily on domestic demand. “This year, there should be no delays in spending, because that is what will drive growth in the first quarter,” she said.

She noted that fiscal spending in early 2025 had been hampered by the transition to a new administration and budget reallocations, and that these should not be repeated.

In addition to consumption, Mari Elka highlighted the importance of restoring investor confidence. She pointed to concerns raised by international institutions such as Morgan Stanley Capital International (MSCI) and Moody’s at the end of January 2026 regarding fiscal sustainability and policy consistency.

She said the period leading up to May 2026, when MSCI is scheduled to review Indonesia’s rating, should be used to strengthen the capital market and advance deregulation.

Mari Elka emphasized the need for concrete deregulation measures to improve the investment climate and seize opportunities from global investment relocation. She added that this would be more effective if Indonesia reached a favorable trade agreement with the United States. “Such an agreement would be a major opportunity to attract investment and ultimately create jobs,” she said. ***