Indonesia Consumer Confidence Slips for Third Month

Indonesia’s consumer confidence eased for a third consecutive month in July, signaling softer domestic demand despite sentiment remaining firmly in optimistic territory.

Indonesia Consumer Confidence Eases

Indonesia’s consumer confidence weakened for the third consecutive month in July 2026, although sentiment remained firmly in optimistic territory, according to Bank Indonesia (BI).

The Consumer Confidence Index (CCI) fell to 116.8 in July from 117.8 in June, marking its lowest level since April 2025. Despite the decline, the index remained well above the 100-point threshold, indicating that Indonesian households continued to hold a broadly positive view of economic conditions.

The moderation was mainly driven by weaker assessments of current economic conditions. The Current Economic Conditions Index declined by 1.3 points to 107.9, reflecting softer household perceptions of the economy.

Household appetite for durable goods also weakened, with the corresponding index falling 1.8 points to 104.1. Meanwhile, perceptions of job availability over the past six months eased by 0.7 points to 101.1, suggesting growing caution over employment conditions.

Forward-looking sentiment also moderated during the month. Expectations for job availability over the next six months declined 1.3 points to 123.1, while expectations for business activity fell 0.8 points to 120.4. Income expectations, however, remained unchanged at a strong 133.6.

The broad-based decline suggests that consumers are becoming more cautious about both current and future economic conditions. While confidence remains expansionary, three consecutive monthly declines point to increasing downside risks for domestic consumption.

For BI, the softer consumer momentum could reduce the need for further monetary tightening. Elevated interest rates appear to be weighing on household activity, particularly durable goods purchases and employment perceptions.

With the central bank continuing to balance rupiah stability against domestic growth, the latest CCI reading strengthens the case for a cautious policy approach focused on supporting economic activity while maintaining financial stability.

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