Indonesian Consumer Confidence Shows Resilience Amid Challenges

Slight Dip in Consumer Confidence Index

Indonesia's Consumer Confidence Index (CCI) experienced a marginal decline to 123.5 in December 2025, down from 124.0 in November 2025. This slight decrease indicates that while consumer optimism remains robust, certain economic factors are beginning to exert influence.

Economic Factors Behind the Decline

Faisal Rachman, Head of Macroeconomic Research at Permata Bank, identified rising inflation as a primary driver of the decline. The increase in inflation, particularly in the food sector, has likely contributed to consumers becoming more cautious about their spending. Additionally, natural disasters in Aceh and Sumatra further dampened consumer confidence, albeit to a lesser extent.

Consumer Sentiment Remains Positive

Despite the dip, the CCI remaining above 100 signifies that Indonesian consumers continue to be optimistic about their economic prospects. This resilience suggests that the overall economic fundamentals remain strong, with consumers still willing to spend. The challenge for policymakers will be to maintain this optimism by addressing inflationary pressures and enhancing economic resilience against natural disasters.

Implications for Economic Policy

The slight decrease in consumer confidence highlights the need for careful economic management, particularly in controlling inflation and mitigating the impact of natural disasters on economic activity. Bank Indonesia and the government will need to balance growth stimulation with inflation control to maintain consumer confidence.