BI Survey Reveals Consumer Confidence in Indonesian Economy Remains Strong in May 2026

The Indonesian economy’s consumer confidence remained strong in May 2026, with the Consumer Confidence Index (IKK) staying in the optimistic zone (index >100) at 120.9. Executive Director of Bank Indonesia’s Communication Department, Ramdan Denny Prakoso, stated on Wednesday in Jakarta that the sustained consumer confidence was supported by a Consumer Expectation Index (IEK) that was higher than the previous month’s index. Despite remaining strong, the May 2026 IKK declined from 123.0 recorded the month prior. In detail, the IEK for May 2026 was recorded at 129.7, slightly higher than the previous month’s index of 129.6.

The increase in the IEK stemmed from optimism regarding expectations for job availability and business activity, which were recorded at 128.1 and 124.5 respectively, up from 127.7 and 124.1 in the previous month. Meanwhile, the Current Economic Condition Index (IKE) remained in the optimistic zone at 112.2, although it was lower than the previous month’s index of 116.5. The sustained strength of the IKE was supported by the Current Income Index, the Job Availability Index, and the Durable Goods Purchasing Index, which were recorded at 123.2, 105.0, and 108.3 respectively, though all were lower than the previous month’s figures.

In the same survey, Bank Indonesia also noted that the average propensity to consume ratio in May 2026 was 72.3 per cent, relatively stable compared to the previous month’s proportion of 72.1 per cent. The debt instalment to income ratio stood at 10.2 per cent, higher than the 9.7 per cent recorded previously. Meanwhile, the saving to income ratio was 17.5 per cent, lower than the previous month’s proportion of 18.2 per cent.