What Caused Indonesia's Consumer Confidence Index to Fall in June?

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TEMPO.CO, Jakarta Bank Indonesia (BI) recorded the Consumer Confidence Index (CCI) at 117.8 in June 2026. This figure marks a decline from the previous month, which stood at 120.9. Nevertheless, the central bank noted that consumer confidence remains resilient as it stays well within optimistic territory, above the 100 threshold.

"Maintained consumer confidence in June 2026 was supported by the Current Economic Condition Index (CECI) and Consumer Expectation Index (CEI), which remained at optimistic levels of 109.2 and 126.4, respectively, despite retreating from 112.2 and 129.7 in the previous period," Bank Indonesia's Communication Department Executive Director Ramdan Denny Prakoso stated in a press release on Wednesday, July 8, 2026.

Within the Current Economic Conditions Index (CECI), all sub-indices registered a decline. The Current Income Index (CII) slid to 119.8 from the 123.2 recorded in May. Similarly, the Job Availability Index (AJI) dipped to 101.8, down from 105 the previous month. Meanwhile, the Durable Goods Purchasing Index fell to 105.9 from the previous month's 108.3.

A similar downward trend was observed across all components of the Consumer Expectations Index (CEI). The Income Expectations Index (EII) softened to 133.6 compared to the 136.5 logged in the prior month. The Job Availability Expectations Index (EJAI) fell to 124.4, down from May's 128.1. Meanwhile, the Business Activity Expectations Index (BAEI) decreased to 121.2 from 124.5 a month earlier.

Addressing the June downturn, the central bank asserted that it remains committed to driving sustainable economic growth by bolstering micro, small, and medium enterprises (MSMEs) and expediting loan disbursements. Denny pointed out that the overall turnover of BI-fostered MSMEs reached Rp7.02 trillion, growing by 23.1 percent annually.

Bank Indonesia is also ramping up credit distribution in tandem with the government, regulatory authorities, banking institutions, and corporate entities. "These efforts are supported by macroprudential liquidity incentive policies which strengthen banking intermediation and financing for the business community," Denny explained. He added that this momentum is reflected in the 11.51 percent year-on-year growth in banking credit recorded in May 2026.

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