Government Responds to Decline in Consumer Confidence Index

Coordinating Ministry for the Economy Secretary Susiwijono Moegiarso has responded to data showing the March 2026 Consumer Confidence Index falling to 122.9. This marks the second decline this year, following a drop to 125.2 in February 2026.

According to Susiwijono, the IKK figure still indicates a high position in the optimistic zone. “This means fluctuations are very normal, but the Consumer Confidence Index and Independent Spending Index are all still quite confident, still very optimistic,” he said when met in Central Jakarta on Thursday, 16 April 2026.

Susiwijono stated that the government remains optimistic that economic growth in the first quarter of 2026 can still reach the target of 5.5 per cent or more. In the fourth quarter of 2025, the Indonesian economy grew by 5.39 per cent. Overall, the economy grew by 5.11 per cent.

Previously, Susiwijono mentioned that domestic consumption contributes 54 per cent to Gross Domestic Product (GDP). Thus, the influence of global dynamics on Indonesia is lower compared to other countries such as Singapore and Vietnam.

The government has also rolled out various economic stimuli in the first quarter of 2026. These stimuli include transport tariff discounts and social assistance. Susiwijono believes that government policies at the start of the year can boost economic growth. “Also, in the first quarter this year, we have Ramadan and Eid al-Fitr, which usually fall in the early second quarter,” he said.

Bank Indonesia previously stated that the downward trend in IKK is continuing. In January 2026, the IKK was recorded at 127.

Nevertheless, Bank Indonesia assesses that consumer confidence in the economic situation remains strong because it is in the optimistic level, above 100. “The continued strength of consumer confidence in March 2026 is influenced by confidence in the current economic conditions and over the next six months,” said Executive Director of the BI Communication Department Ramdan Denny Prakoso in an official statement on Friday, 10 April 2026.

The Current Economic Condition Index (IKE) was recorded at 115.4, down from the previous month’s level of 115.9. Meanwhile, the Consumer Expectations Index (IEK) stood at 130.4, down from 134.4 the previous month.

Based on BI’s survey, the IKE position in March 2026 was supported by an increase in the Current Income Index to 129.2, compared to 125 the previous month. Meanwhile, the Availability of Employment Index fell to 107.8 from 110.7 the previous month. The Durable Goods Purchase Index also dropped to 109.2 from 112 in February.

All components of the IEK experienced declines. The Income Expectations Index fell to 137.7 from 140.7 the previous month. Next, the Employment Availability Expectations Index dropped to 128.0 from 131.7 the previous month. The Business Activity Expectations Index fell to 125.5 from 130.9 the previous month.