Arnoldus Kristianus, Jakarta – The Consumer Confidence Index (CCI) fell to 117.8 in June from 120.9 in May, although it remained firmly in optimistic territory, according to a survey by Bank Indonesia.

"The June 2026 Consumer Survey indicates that consumer confidence in economic conditions remains resilient. This is reflected in the Consumer Confidence Index, which stood at an optimistic level of 117.8 in June 2026," Ramdan Denny Prakoso, head of Bank Indonesia's communications department, said in a statement on Wednesday.

Consumer confidence remained above the 100-point optimism threshold across all income groups. Respondents earning more than Rp 5 million ($278) per month recorded the highest confidence level at 121.4.

By age, optimism also persisted across all groups, with consumers aged 20-30 posting the highest reading at 124.3. Regionally, the sharpest declines in confidence were recorded in Makassar, Banten, and Medan, while several other cities posted gains.

Current economic perceptions also softened in June. The Current Economic Conditions Index fell to 109.2 from 112.2 a month earlier.

The decline was driven by weaker readings in the Current Income Index, which dropped to 119.8 from 123.2, the Job Availability Index, which eased to 101.8 from 105.0, and the Durable Goods Purchase Index, which slipped to 105.9 from 108.3.

"Regionally, most cities recorded a decline in the Current Economic Conditions Index, particularly Makassar, Banten, and Medan. Meanwhile, improvements were seen in several cities, including Mataram, Padang, and Palembang," Ramdan said.

Despite the decline, the Durable Goods Purchase Index remained in optimistic territory across most spending groups, with the highest reading of 108.8 recorded among households spending more than Rp 5 million per month. By age, consumers aged 20-30 posted the strongest reading at 114.0, followed by those aged 31-40 at 110.5.

Meanwhile, consumers remained upbeat about the outlook over the next six months. The Consumer Expectations Index stood at 126.4 in June, easing from 129.7 in May but remaining at a strong level.

The reading was supported by optimism over future income, employment opportunities, and business activity, with the respective indices at 133.6, 124.4, and 121.2.

"Most cities recorded a decline in the Consumer Expectations Index, with the sharpest decreases seen in Padang, Bandar Lampung, and Medan. However, several other cities posted improvements," Ramdan said.

The survey also showed consumers allocated a larger share of their income to spending in June. The average propensity to consume rose to 73.0% from 72.3% in May, while the debt installment-to-income ratio remained broadly stable at 10.0%, compared with 10.2% previously.

Meanwhile, the share of income set aside for savings fell to 17.0% from 17.5%.

Consumption as a share of income increased among households with monthly expenditures of Rp 2.1 million-Rp 3 million, Rp 4.1 million-Rp 5 million, and above Rp 5 million. Savings rates, meanwhile, declined among consumers spending Rp 2.1 million-Rp 3 million and Rp 4.1 million-Rp 5 million.

Source: https://jakartaglobe.id/business/indonesia-consumer-confidence-slips-to-1178-in-jun