Indonesian Consumer Optimism Weakens in Q1 2025

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Adi Ahdiat 16/04/2025 10:59 WIB

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According to a Bank Indonesia survey, Indonesia's consumer confidence index remains generally in the optimistic zone, but the level of optimism weakened during the first quarter of 2025.

Indonesia Consumer Confidence Index (January 2020–March 2025)

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Indonesia Consumer Confidence Index (January 2020–March 2025)

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Indonesian consumer optimism weakened throughout January-March, or the first quarter of 2025. This is evident in the decline of the Consumer Confidence Index (CCI) released by Bank Indonesia (BI).

BI compiles the CCI from a survey of 4,600 households spread across 18 major Indonesian cities. The survey indicators include consumer perceptions of economic conditions, income, job availability, purchases of durable goods, and business activity.

An index above 100 indicates optimistic consumer sentiment, while an index below 100 indicates pessimism.

Previously, in December 2024, the CCI stood at 127.7. However, during the first quarter of 2025, the CCI fell for three consecutive months, reaching 121.13 in March 2025, as shown in the graph. This figure indicates that Indonesian consumers remain generally optimistic, but their level of optimism has decreased.

The decline in the CCI during the first quarter of 2025 coincided with a decrease in the Current Economic Conditions Index (CECI) and the Consumer Expectations Index (CEI).

The CECI, an index reflecting consumer perceptions of the actual economic situation, fell from 116 (December 2024) to 110.6 (March 2025). The decline in the CECI is due to decreased optimism regarding current income, job availability, and purchases of durable goods.

The CEI, which reflects consumer expectations for the next 6 months, fell from 139.5 (December 2024) to 131.7 (March 2025). The decline in the CEI is due to decreased optimism regarding expected income, job availability, and business activity in the next 6 months.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesian Consumer Optimism Weakens in Q1 2025

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