Indonesian Consumer Sentiment Remains Optimistic Despite Slight Decline

Consumer Confidence Metrics

The Bank Indonesia Consumer Survey revealed a marginal decrease in consumer confidence in December 2025, with the Consumer Confidence Index (IKK) edging down to 123.5 from 124.0 in November ⁴

. Despite this decline, the index remains above the optimism threshold of 100, indicating overall positive consumer sentiment.

Current Economic Perception

The Current Economic Condition Index (IKE) remained relatively stable at 111.4 in December, compared to 111.5 in November ³

. This stability was supported by:

1. Improved Employment Index: Rising to 106.5 from 103.7
2. Current Income Index: Maintained at 120.2
3. Durable Goods Index: Recorded at 107.6

Consumer Behavior Changes

The survey also revealed significant shifts in consumer behavior:

1. Average Propensity to Consume Ratio decreased slightly to 74.3% from 74.6%
2. Debt-to-Income Ratio dropped to 10.8% from 11.0% ²
   Source 2

   https://nasional.kontan.co.id/news/survei-konsumen-bi-cicilan-menurun-porsi-tabungan-meningkat-pada-desember-2025
3. Proportion of income saved showed an increase

These changes indicate that consumers are becoming more cautious in their spending and debt management while maintaining overall optimism about their financial situation.

Future Expectations

The Consumer Expectations Index (IEK) decreased marginally to 135.6 in December from 136.6 in November ¹

. Key components:

1. Income Expectations Index rose to 140.8
2. Employment Expectations Index remained optimistic at 135.1
3. Business Activity Expectations stood at 130.8

While there was a slight decline in overall expectations, consumers continue to maintain a positive outlook on future economic conditions.