Indonesia's Consumer Confidence Index Dips in June, but Bank Indonesia Remains Optimistic

Bank Indonesia (BI) announced that the Consumer Confidence Index (IKK) saw a decline in June 2026, dropping to 117.8 from 120.9 in May.

Despite this decrease, BI officials emphasized that the index remains above the optimistic threshold of 100. This suggests that consumer confidence in the economic situation is largely maintained. Ramdan Denny Prakoso, Head of BI's Communication Department, stated that the June figures reflect sustained consumer confidence.

The resilience of consumer confidence is attributed to both the Index of Current Economic Conditions (IKE) and the Index of Consumer Expectations (IEK). While both indices saw a slight dip from the previous month, they remained in optimistic territory at 109.2 and 126.4, respectively. Consumer confidence was strong across all spending groups and age demographics, with the highest IKK recorded among those earning over Rp 5 million and individuals aged 20-30 years.

Perceptions of current economic conditions, as measured by the IKE, were bolstered by positive readings in the Index of Current Income (IPSI), the Index of Job Availability (IKLK), and the Index of Durable Goods Purchases (IPDG). Although these sub-indices also decreased slightly from May, they remained optimistic. However, the IKLK showed a decline across all education levels, with only university and diploma graduates maintaining optimistic perceptions, while other education groups fell into pessimistic territory.