Anastasya Lavenia Yudi, Jakarta – Economist Achmad Nur Hidayat from the University of Pembangunan Nasional (UPN) Veteran Jakarta warns that the recent decline in Indonesia's Consumer Confidence Index (CCI) signals a potential drop in household purchasing power if the labor market is not strengthened quickly.
The weakening component driving the decline, he noted, is the perception of job availability.
"This suggests that households are primarily concerned not just with prices or interest rates, but with income security," Achmad said in a written statement on Thursday, September 11, 2025.
"When people are unsure about the continuity of their jobs, they reduce non-essential spending, postpone purchases of durable goods, and choose to save as a financial buffer."
On Wednesday, September 10, 2025, Bank Indonesia (BI) reported that the CCI for August 2025 fell to 117.2, the lowest level since September 2022, which is nearly three years. BI's survey also shows that the Job Availability Index (JAI) remains in the pessimistic zone at 93.2, a level it has stayed below since May 2025.
After rising to 95.3 in July from June's 94.1, JAI fell again in August, reflecting growing household concerns over job security.
Achmad emphasized that if the negative trend in job perception continues, consumption growth could slow, posing a risk to the Indonesian economy, which heavily relies on household spending. He urged the government to send clear signals prioritizing job creation and stable food prices.
"This requires precise execution: consistent regulations, predictable business incentives, and transparent governance of assistance programs," Achmad added.
Despite the decline, BI noted that consumer confidence remains in the optimistic zone, above 100. Compared to July's 118.1, CCI decreased slightly but stayed positive.
"The sustained consumer confidence in August 2025 is supported by the Current Economic Condition Index (CECI) and the Consumer Expectation Index (CEI), both of which remain at optimistic levels," said Ramdan Denny Prakoso, Executive Director of BI's Communication Department, in an official statement on Wednesday, September 10, 2025.
Source: https://en.tempo.co/read/2047994/indonesias-consumer-confidence-falls-spending-power-expected-to-dro