Year-End Consumer Spending Shows Seasonal Increase

Regional Variations in Spending Patterns

Consumer spending in Indonesia experienced a seasonal boost during the 2025 year-end holiday period, according to Bank Mandiri's Spending Index (MSI). The index reached 354.5 as of December 28, 2025, marking a 0.6% increase from the previous week. While this growth is positive, it represents a moderation compared to the 4.4% surge observed in the previous week, which was the peak spending period during the holiday season.

Regional Spending Trends

The spending growth was not uniform across regions. Sumatra led the growth with a 1.1% increase, followed by Java at 0.9%, Maluku-Papua at 0.6%, and Bali-Nusa Tenggara at 0.2%. Conversely, Kalimantan experienced a decline of 1.4%, while Sulawesi recorded a marginal decrease of 0.1%. These regional variations highlight the diverse economic activity across Indonesia during the holiday period.

Economic Implications

The increase in consumer spending during the year-end holidays is a positive indicator for Indonesia's economic activity in the final quarter of 2025. The growth in spending, particularly in regions like Sumatra and Java, suggests a robust retail sector performance. However, the decline in certain regions like Kalimantan warrants closer examination of local economic conditions.

The overall trend indicates that while there was a seasonal boost in consumption, the rate of growth moderated compared to the previous week's peak. This moderation could be attributed to various factors, including consumer behavior and economic conditions. Bank Mandiri's MSI provides valuable insights into consumer spending patterns, helping to inform economic analysis and business decisions.