Indonesia's Consumer Confidence Index Rises to 118.5 in August 2026

RRI.CO.ID, Jakarta - Indonesian consumer optimism strengthened in August 2026, accompanied by a rising tendency among households to allocate more of their income to consumption.

Bank Indonesia’s (BI) Consumer Survey recorded the Consumer Confidence Index (CCI) at 118.5, up from 116.8 in July, indicating that confidence remains in the optimistic zone (index above 100).

Executive Director of BI’s Communications Department, Ramdan Denny Prakoso, said the improvement in the CCI was driven by stronger perceptions of both current economic conditions and future expectations.

The Current Economic Conditions Index (CECI/IKE) rose to 109.4 from 107.9, while the Consumer Expectations Index (CEI/IEK) increased to 127.6 from 125.7.

The rise in the CECI was supported by increases in its components. The Job Availability Index (IKLK) reached 104.1, up from 101.1, and the Durable Goods Purchasing Index (IPDG) rose to 106.1 from 104.1. Meanwhile, the Current Income Index (IPSI) remained in the optimistic zone at 118.0.

Future expectations also strengthened. The Income Expectations Index (IEP) reached 134.9, the Job Availability Expectations Index (IEKLK) reached 125.7, and the Business Activity Expectations Index (IEKU) reached 122.1, all higher than July’s readings.

This improvement in confidence is reflected in household income allocation. The average propensity to consume ratio rose to 74.2 percent, from 72.7 percent in July.

The debt installment‑to‑income ratio remained relatively stable at 10.0 percent, compared with 10.5 percent the previous month. Meanwhile, the savings‑to‑income ratio declined to 15.8 percent from 16.8 percent.

These developments indicate that consumers are increasing their spending as confidence in current economic conditions and income prospects improves. This shift in income allocation serves as an important indicator for household consumption outlook in the second half of 2026. ***