Consumer Confidence in Indonesia's Economy Declines Again in March 2026: What Does It Signify?

JAKARTA - Indonesia’s Consumer Confidence Index (IKK) experienced a decline for two consecutive months in February and March 2026. Bank Indonesia (BI) data shows that the March 2026 IKK fell to 122.9 from 125.1 in February. On a monthly basis, the index dropped 2.3 points, continuing the February decline of 1.9 points from January’s level of 127. BI Communications Department Head Ramdan Denny Prakoso stated that the February IKK remained at an optimistic level or above the 100 threshold. “Bank Indonesia’s March 2026 Consumer Survey indicates that consumer confidence in economic conditions remains strong,” he said in an official statement on Friday (10/4/2026). The spending group with expenditures over Rp 5 million saw the deepest IKK decline, from 129.2 to 124.4. Meanwhile, the Rp 1-2 million spending group recorded the highest IKK increase, from 113.3 to 114.7. By age group, nearly all groups experienced an IKK decline. Only the over-60 age group recorded an IKK increase, from 108.4 to 109.8. The deepest IKK decline occurred in the 20-30 age group, from 133.7 to 129.6. This IKK decline aligns with the Current Economic Condition Index (IKE) falling to 115.4 from 115.9, and the Consumer Expectations Index (IEK) dropping to 130.4 from 134.4. The IEK decline was driven by drops in the Income Expectations Index, Job Availability Expectations Index, and Business Activity Expectations Index. “The continued strength of consumer confidence in March 2026 is influenced by confidence in current economic conditions and the next six months,” he said. According to him, although the IKK fell to 122.9 from 125.2 in February, its position remains well above the 100 threshold, indicating consumers are still in the optimistic zone. “The main message is not that households have suddenly lost confidence, but that society is starting to be more cautious after being very optimistic at the beginning of the year.” He added that this condition shows consumption has not slowed sharply, but the impetus for aggressive spending is beginning to wane. “Therefore, I see the March IKK decline as an early warning signal, not a crisis signal,” he stated.