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LPS survey: Consumer confidence falls in September as Indonesians worry about economy

Source
Tempo - October 3, 2025

Anastasya Lavenia Yudi, Jakarta – The results of the survey conducted by the Indonesia Deposit Insurance Corporation (LPS) indicate a decline in consumer confidence regarding economic conditions, job opportunities, and household income in September 2025. This is reflected in the Consumer Confidence Index (CCI), which stands at 90.5, a 3.5-point decrease from the previous month.

The CCI consists of the Current Situation Index (CSI) and the Expectations Index (EI). For the Current Situation Index (CSI) component, the figure dropped by 5.4 points to 65.8. Meanwhile, the Expectations Index component also declined, although it still remains in the optimistic zone, at a level of 109.0. This represents a 2.0-point decrease from August 2025.

According to Seto Wardano, Director of the Research Group at LPS, the decline in CCI last month was influenced by the price hikes of basic commodities and difficult job market conditions. He stated, "Additionally, the decline in CCI is also influenced by several other factors, such as crop failures and expensive fertilizer. Extreme weather conditions that continue to affect several regions, in the form of both heavy rainfall and drought, have led to concerns about the risk of crop failures," in an official statement on Thursday, October 2, 2025.

Based on income, the CCI for households with a monthly income above Rp7 million remains above 100, indicating optimism in September 2025. However, the CCI in this group decreased by 2.3 points from August. At the same time, the CCI in the other three income groups also slipped by 2.6 to 10.4 points.

Previously, Statistics Indonesia (BPS) announced that the inflation rate in September 2025 reached 0.21 percent m-o-m, prompted by price hikes of food commodities, gold, tobacco products, and tuition fees.

M. Habibullah, Deputy for Production Statistics at BPS, noted an increase in the Consumer Price Index (CPI) from 108.51 in August 2025 to 108.74 in September 2025. He said, "The largest monthly inflation-contributing expenditure group is food and beverages, with a 0.38 percent inflation rate, contributing 0.11 percent to the inflation," in a virtual press conference on Wednesday, October 1, 2025.

The dominant commodities driving inflation in that group are red chili and broiler chicken meat, each contributing 0.13 percent to the inflation. Furthermore, inflation was driven by the increase in the prices of gold jewelry, with a contribution of 0.08 percent.

BPS also noted a lower rice price in September 2025, but still higher than that of last year. "The average price of rice at the milling level in September 2025 decreased by a total of 0.62 percent on a month-to-month basis, but increased by 5.83 percent on a year-on-year basis," said Habibullah.

– Ilona Estherina contributed to the writing of this article

Source: https://en.tempo.co/read/2053976/lps-survey-consumer-confidence-falls-in-september-as-indonesians-worry-about-econom

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