BI Survey Reveals Rising Consumption, Declining Household Instalments

JAKARTA, KOMPAS.com — Bank Indonesia’s (BI) Consumer Survey for March 2026 shows that consumer financial conditions remain stable amid confidence in the economy that is still at an optimistic level.

On the income usage side, there is a shift in composition marked by an increase in the share of consumption, followed by a decline in the instalment payment ratio, and stable savings proportion.

BI records that the average proportion of household income used for consumption (average propensity to consume ratio) reached 72.2%. This figure increased compared to the previous month at 71.6%.

Meanwhile, the proportion of income saved (saving to income ratio) remained relatively stable at 17.6%, slightly down from 17.7% in the previous month.

These data indicate a tendency for households to increase consumption spending while maintaining savings levels and reducing instalment burdens.

The consumption share continues to dominate the expenditure structure, while the instalment line tends to decline and savings remain relatively flat over the last few periods.

The central bank notes that almost all groups showed an increase in the consumption share of income compared to the previous month.

This indicates that the consumption push is not limited to certain groups but is widespread across various household strata.

In other words, the spending increase occurs both in low-income groups and middle to high-income groups.

This condition reflects an improvement in household debt burdens, either due to a decline in instalment obligations or an increase in income that makes the ratio smaller.

Unlike consumption and instalments, the savings share tends to be stable. In March 2026, the saving to income ratio was at 17.6%, almost unchanged from the previous month.