Consumer Confidence Index Falls in July 2026, Weakening Purchasing Power?

Bank Indonesia (BI) released data showing the Consumer Confidence Index (IKK) in July 2026 stood at 116.8, down from 117.8 in the previous month. The figure indicates that public confidence in economic conditions is weakening.

“Bank Indonesia’s Consumer Survey in July 2026 indicates that consumer confidence in economic conditions remains maintained. This is reflected in the July 2026 IKK which is at an optimistic level (index >100) of 116.8,” said Head of BI’s Communications Department Ramdan Denny Prakoso in a statement on Monday (10/8/2026).

Denny explained that consumer optimism was supported by still-strong perceptions of the current economy and expectations for future economic conditions. However, he acknowledged that the data does show a decline in both perceptions of the current economy and expectations for future economic conditions.

“The maintained consumer confidence in July 2026 was supported by the Current Economic Conditions Index (IKE) and the Consumer Expectations Index (IEK) which remained at optimistic levels, at 107.9 and 125.7 respectively,” he explained.

By spending group, consumer confidence in July 2026 remained optimistic across all spending groups, with the highest IKK recorded among respondents in the >Rp 5 million group at 121.2. By age, the highest IKK was recorded among respondents aged 20-30 years (122.9).

Regarding the IKE, consumer perceptions of current economic conditions remained strong, reflected in the July 2026 IKE of 107.9, which is at an optimistic level (index >100). However, the figure is lower than the previous month’s 109.2. The IKE achievement was supported by the Current Income Index (IPSI), the Job Availability Index (IKLK), and the Durable Goods Purchase Index (IPDG), which were recorded at 118.5, 101.1, and 104.1 respectively. These figures are lower than the previous month’s 119.8, 101.8, and 105.9 respectively.

By spending group, consumer confidence in current income remained strong across all groups, but most experienced a decline in index. The highest index was recorded in the Rp 4.1-5 million spending group at 124.5. By age group, the highest index was recorded in the 20-30 year age group at 124.9.

Furthermore, the perception of high school-educated respondents regarding current job availability declined and remained at a pessimistic level. Meanwhile, respondents with academy/diploma, bachelor’s, and postgraduate education recorded index increases of 106.2, 114.5, and 101.7 respectively. By age group, the index remained at an optimistic level for the 20-40 year age group, while the >41 year age group was at a pessimistic level.

From the spending side, the IPDG was at an optimistic level for the >Rp 4.1 million spending group. The highest index was recorded in the >Rp 5 million spending group, but declined to 108.3. By age group, the highest index was recorded in the 20-30 year age group, followed by the 31-40 year age group, at 109.5 and 106.0 respectively.

Regarding the IEK, consumer expectations for economic conditions over the next six months are expected to remain strong. This is reflected in the July 2026 IEK of 125.7, but the figure is lower than the previous month’s index of 126.4. The maintained strength of the IEK stems from optimism in income expectations, job availability expectations, and business activity expectations, which were recorded at 133.6, 123.1, and 120.4 respectively.

Respondents’ perceptions of income expectations for the next six months were at an optimistic level across all spending groups. Index declines occurred in the Rp 2.1-3 million and Rp 3.1-4 million spending groups, which recorded indices of 126.9 and 131.5 respectively. Meanwhile, other groups experienced index increases. By age group, the highest index was recorded in the 20-30 year age group, followed by the 31-40 year age group, at 139.0 and 137.7 respectively.

Consumer expectations regarding job availability over the next six months were at an optimistic level across all education levels. Index increases occurred at all education levels, except for high school education which experienced a decline to 118.6. By age group, index increases occurred in the 20-40 year age group, while other age groups experienced index declines.

Consumer expectations for future business activity development declined in the Rp 2.1-4 million spending group, while other spending groups experienced index increases. The highest index was recorded in the >Rp 5 million spending group, followed by the Rp 4.1-5 million spending group, with indices of 127.4 and 121.5 respectively. By age group, index declines occurred in the 41-50 year and >60 year age groups, while other age groups experienced index increases.