Lorencia Sariani Tondang, Jakarta – The majority of the public believes household income has improved, but the gains have not been enough to offset the rising cost of living, according to a Poltracking Indonesia survey.
The survey shows that while more Indonesians feel their household finances have improved, household spending has also increased and basic necessities are increasingly seen as unaffordable. The findings are among the key indicators of public sentiment toward the economic performance of President Prabowo Subianto and Vice President Gibran Rakabuming Raka's administration.
Based on Poltracking Indonesia's national survey conducted in August 2026, 60% of respondents said their household conditions had improved over the past year. Meanwhile, 57% said their family's financial situation had improved, while 58% said their household income was better than a year earlier.
Although the figures indicate a generally positive perception, Poltracking said they were not particularly high, with all three indicators remaining below 60%. The results highlight continued concerns over the government's ability to translate economic growth into stronger household purchasing power.
Pressure is more evident on the spending side. A total of 62.5% of respondents said their household spending had increased over the past year. When asked about the prices of basic necessities during the previous month, 55.6% said they considered them unaffordable.
"This data shows that there is an economic situation in which people's purchasing power is weakening possibly because incomes have not increased, while prices of basic necessities have risen, resulting in a relative decline in purchasing power," Hanta Yuda AR said during a presentation of the Poltracking Indonesia survey results on Monday.
The survey findings come as official data point to both improvements and continuing pressures in the economy.
The Central Statistics Agency (BPS) reported that Indonesia's annual headline inflation rate rose to 3.19% in August 2026, adding to pressure on household budgets.
Meanwhile, data from the National Labor Force Survey (Sakernas) showed that the average wage of formal employees stood at Rp3.39 million ($203) per month as of May 2026. While the figure provides an indication of earnings, its purchasing power depends on how wage growth compares with inflation and the prices of essential goods.
Other indicators show improvements in the broader economic and labor-market picture.
Indonesia's national poverty rate fell to a record low of 8.07% in March 2026, from 8.25% in late 2025. The decline meant that 22.93 million people were living below the national poverty line.
The open unemployment rate also declined to 4.65% in May 2026, with 7.22 million unemployed people recorded out of a total labor force of 155.41 million.
The combination of lower poverty and unemployment suggests that labor-market conditions and household welfare have improved in some respects. However, the Poltracking findings indicate that these gains have not necessarily translated into a stronger sense of purchasing power among the wider public.
The issue of basic-necessity prices has emerged as the most pressing economic concern. A total of 44.3% of respondents cited high prices of basic necessities as the primary problem currently facing the public.
Source: https://jakartaglobe.id/business/rising-prices-offset-household-income-gains-poltracking-survey-find