Indonesian Consumer Spending Enters Normalization Phase

Slowing Growth Trend

Consumer spending in Indonesia showed continued growth as of November 16, 2025, but at a marginally slower pace compared to the previous week. The Mandiri Spending Index (MSI) recorded a 1.5% week-on-week increase to 312.8. This growth rate represents a slight deceleration from the 1.7% week-on-week rise observed in the preceding week.

Economic Analysis

M Rizal Taufikurahman, Head of Macroeconomic and Finance Center at Indef, interpreted this moderation as an indication that household consumption is entering a normalization phase. According to Taufikurahman, the initial month stimulus, social assistance distribution, and seasonal factors that previously boosted spending have begun to dissipate their effects. Consequently, households continue to spend but with greater caution and at a more measured pace.

Market Implications

While the growth in consumer spending has slowed, it remains positive, suggesting that household consumption continues to support economic activity. The moderation in spending growth reflects a transition towards more sustainable consumption patterns following the heightened activity earlier in the period.