Faisal Maliki Baskoro, Jakarta – Indonesian consumer confidence strengthened in January 2026, reflecting improved perceptions of current economic conditions and a more upbeat outlook for the months ahead, according to a survey released by Bank Indonesia on Monday.
The Consumer Confidence Index (CCI) climbed to 127 in January from 123.5 in December, keeping the gauge firmly in optimistic territory, defined as readings above 100. The increase suggests households remain resilient despite ongoing global economic uncertainty.
"The January 2026 Consumer Survey indicates that consumer confidence in economic conditions improved compared with the previous month," Ramdan Denny Prakoso, head of Bank Indonesia's communications department, said in a statement.
The improvement was broadly based across income brackets and age groups. Respondents aged 20 to 30 recorded the highest confidence level, with an index reading of 134.2. Geographically, the strongest gains were seen in Semarang, Palembang and Padang, underscoring a more even distribution of optimism beyond Indonesia's largest cities.
The index measuring current economic conditions rose to 115.1 in January from 111.4 a month earlier. The increase was supported by higher readings in household income perceptions, job availability and spending on durable goods.
The current income index stood at 123.7, while perceptions of job availability rose to 109.9. Meanwhile, the index tracking purchases of durable goods, such as household appliances and vehicles, increased to 111.8, indicating stronger consumer willingness to spend.
Expectations for the economy over the next six months also strengthened. The Consumer Expectations Index rose to 138.8, driven by improved outlooks for income growth and business activity. The income expectations index climbed to 146, while expectations for business conditions increased to 135.3.
By contrast, expectations for job availability over the next six months were unchanged at 135.1, suggesting steady but not accelerating optimism in the labor market.
In terms of employment prospects, respondents with undergraduate and postgraduate education levels showed the strongest confidence, with index readings of 145.2 and 150.7, respectively. By age group, optimism regarding job availability increased among those aged 20 to 40 and those over 60.
The rise in consumer confidence comes as Indonesia's economy continues to post solid, though slightly below-target, growth. Gross domestic product expanded by 5.11 percent in 2025, improving on the 5.03 percent growth recorded a year earlier but falling short of the government's 5.2 percent target. The expansion was supported by steady household consumption, government spending and investment, lifting GDP per capita to Rp 83.7 million ($5,083.4) from Rp 78.6 million in 2024.
Unemployment rate fell to 4.74 percent in November 2025. Of the 155.27 million people in the labor force, 7.35 million remained unemployed. The jobless rate declined by 0.11 percentage points from August 2025, while the number of unemployed dropped by about 109,000 over the same period.
Unemployment, however, remains concentrated among younger Indonesians. The open unemployment rate for those aged 15-24 stood at 16.26 percent in November 2025, the highest among all age groups, according to data from Statistics Indonesia (BPS). By contrast, the rate for those aged 60 and above was the lowest at 1.44 percent. Compared with August 2025, only the 25-59 age group recorded a slight increase in unemployment, rising by 0.05 percentage points, while all other age groups saw declines
Source: https://jakartaglobe.id/business/indonesia-consumer-sentiment-improves-as-growth-holds-above-