Consumer Confidence Index Falls, Are Indonesians Less Confident in Shopping During Ramadan?

Jakarta, CNBC Indonesia - Bank Indonesia’s Consumer Survey for March 2026 recorded the March 2026 Consumer Confidence Index (IKK) at an optimistic level of 122.9, although lower than the previous month’s IKK of 125.2.

BI claims that the March IKK indicates that consumer confidence in the economic conditions remains strong.

“The continued strength of consumer confidence in March 2026 is influenced by confidence in the current economic conditions and those over the next six months. The Current Economic Condition Index (IKE) and Consumer Expectations Index (IEK) remain at optimistic levels, at 115.4 and 130.4 respectively,” said the Executive Director of the BI Communication Department, Ramdan Denny Prakoso, on Friday (10/4/2026).

Consumer perceptions of the current economic conditions remain strong, reflected in the March 2026 IKE of 115.4, which is at an optimistic level (index >100), although slightly lower than the previous month’s 115.9.

The continued strength of the IKE is supported by an increase in the Current Income Index (IPSI), recorded at 129.2, higher than the previous month’s 125.0.

Meanwhile, the Job Availability Index (IKLK) and the Durable Goods Purchase Index (IPDG) were recorded at optimistic levels of 107.8 and 109.2 respectively, although lower than the previous month’s 110.7 and 112.0.

Furthermore, Ramdan stated that consumer expectations for economic conditions over the next six months are projected to remain strong. This is reflected in the March 2026 IEK of 130.4, although lower than the previous month’s index of 134.4.

“The continued strength of the IEK stems from optimism in expected income, expected job availability, and expected business activity, recorded at 137.7, 128.0, and 125.5 respectively,” said Ramdan.

Spatially, most cities recorded a decline in IEK, with the largest drops in Pontianak, Semarang, and Surabaya. Meanwhile, some cities experienced an increase in IEK, with the highest rises in Bandung, Bandar Lampung, and Pangkal Pinang.

Respondents’ perceptions of expected income over the next six months are at an optimistic level across all expenditure groups. Although the majority of expenditure groups experienced a decline in the index compared to the previous month.

The highest index was recorded in the Rp4.1-5 million group at 139.6. Based on age groups, the highest index was recorded for ages 31-40 at 140.6.

In March 2026, the average proportion of consumer income for consumption (average propensity to consume ratio) was recorded at 72.2%, higher than the previous month’s proportion of 71.6%.

Meanwhile, the proportion for debt instalments (debt instalment to income ratio) was 10.2%, lower than the previous month’s 10.6%.

Furthermore, the proportion of consumer income saved (saving to income ratio) was 17.6%, relatively stable compared to the previous month’s 17.7%.

From this survey, BI concludes that the proportion of consumption to income is indicated to increase in most expenditure groups. Meanwhile, the portion of income for debt repayments has declined across all expenditure groups.