Savings Increase, Indonesian Citizens Confident Economy is Improving

Indonesia’s Consumer Confidence Index (CCI) increased in April 2026 to 123, up from 122.9 in March 2026. According to Bank Indonesia’s Consumer Survey for April 2026, this rise in the CCI was supported by an increase in the Current Economic Conditions Index (CECI) to 116.5 from 115.4 the previous month. Meanwhile, the other component of the CCI, the Consumer Expectations Index (CEI), fell to 129.6, lower than the previous month’s figure of 130.4. “Consumer optimism is supported by persistently strong perceptions of the current economic conditions,” as quoted from the Bank Indonesia Consumer Survey on Monday (11/5/2026). The increase in the CECI was driven by rises in the Job Opportunities Availability Index (JOAI) and the Durable Goods Purchase Index (DGPI), recorded at 108.8 and 112.6 respectively, higher than the previous month’s 107.8 and 109.2. Meanwhile, the Current Income Index (CII) was recorded at an optimistic level above 100, at 128.1, although lower than the previous month’s 129.2. The decline in the CEI was due to decreases in all its forming components, namely the income expectations index at 136.9 from 137.7 previously, job opportunities expectations at 127.7 from 128, and business activity expectations at 124.1 from 125.5. From the perspective of consumer financial conditions, Bank Indonesia noted an increase alongside the rise in the CCI in April 2026. Among them is the proportion of consumer income saved or the saving-to-income ratio at 18.2%, higher than the previous month’s proportion of 17.6%. Meanwhile, the other composition, namely the average proportion of consumer income for consumption (average propensity to consume ratio), was recorded at 72.1%, slightly down from the previous month’s 72.2%. Similarly, the average proportion of debt instalments from income (debt instalment-to-income ratio) fell to 9.7%, compared to the previous month’s 10.2%. For information, the Bank Indonesia Consumer Survey is a monthly survey conducted since October 1999. Starting from January 2007, the survey has been conducted on approximately 4,600 households as respondents (stratified random sampling). The survey is carried out in 18 cities: Jakarta, Bandung, Bodebek, Semarang, Surabaya, Medan, Makassar, Bandar Lampung, Palembang, Banjarmasin, Padang, Pontianak, Samarinda, Manado, Denpasar, Mataram, Pangkal Pinang, Ambon, and Banten. City-specific indices are calculated using the balance score method (net balance + 100), indicating that an index above 100 means optimistic and below 100 means pessimistic. The increased saving-to-income ratio among others is for incomes of Rp 3.1 million to Rp 4 million, from 17.5% previously to 18.3%, and similarly for incomes of Rp 4.1 million to Rp 5 million from 18% to 18.6%. For the highest income group, namely above Rp 5 million per month, the savings ratio from income increased from 18.3% to 19.2%. Meanwhile, for the lowest income group, namely Rp 1 million to Rp 2 million, it fell from 17.4% to 17.2%. The same applies to incomes of Rp 2.1 million to Rp 3 million, from 16.8% to 16.7%.