BI: Consumer Confidence Index Remains in Optimistic Territory in July 2026

Bank Indonesia (BI) reported that the Consumer Confidence Index (IKK) for July 2026 remained in the optimistic zone (index >100) at 116.8. “The Bank Indonesia Consumer Survey in July 2026 indicates that consumer confidence in the economy remains well maintained,” said Executive Director of the BI Communications Department Ramdan Denny Prakoso in an official statement in Jakarta on Monday. The sustained consumer confidence in July 2026 was underpinned by the Current Economic Conditions Index (IKE) and the Consumer Expectations Index (IEK), which remained in optimistic territory at 107.9 and 125.7, respectively, although these were lower than the previous month’s indices of 109.2 and 126.4. The optimistic IKE data was supported by the Current Income Index, the Job Availability Index, and the Durable Goods Purchase Index, which were recorded at 118.5, 101.1, and 104.1, respectively, though these were also lower than the previous month’s figures of 119.8, 101.8, and 105.9. Furthermore, Denny stated that consumer expectations for economic conditions over the next six months are predicted to remain strong, reflected in the July 2026 IEK of 125.7, despite being slightly lower than the previous month’s index of 126.4. “The sustained strength of the IEK stems from optimism regarding income expectations, job availability expectations, and business activity expectations, which were recorded at 133.6, 123.1, and 120.4, respectively,” he added. Additionally, BI noted that the average proportion of consumer income allocated for consumption (average propensity to consume ratio) was 72.8 percent in July 2026, relatively stable compared to the previous month’s proportion of 73.0 percent. Meanwhile, the proportion for debt installment payments (debt installment to income ratio) was 10.5 percent, slightly higher than the previous month’s proportion of 10.0 percent. The proportion of consumer income saved (saving to income ratio) was recorded at 16.8 percent, relatively stable compared to the previous month’s proportion of 17.0 percent.