Indonesia’s consumer confidence dropped to its lowest level in three and a half years, sparking concerns over the country’s economic momentum. According to Bank Indonesia (BI), the Consumer Confidence Index (CCI) fell to 115 in September 2025, down from 117.2 in August and 118.1 in July. The last time the index fell below 115 was in April 2022, when it reached 113.1. Despite the decline, the index remains above the neutral benchmark of 100, technically still reflecting optimism.
Indonesia Consumer Confidence Hits 3.5-Year Low
The September 2025 survey shows that consumer confidence has been weakening for several months. BI reported that the current level marks the sharpest drop since April 2022. Although the index is still in the optimistic zone, it highlights growing unease among households about Indonesia’s economic conditions. Finance Minister Purbaya Yudhi Sadewa pointed to broader economic challenges as the trigger for the downturn.
“If you look, September dropped significantly because the economy was slowing at that time and people began losing hope. That’s why you saw many demonstrations,” Purbaya said during an event at Equity Tower, Jakarta, on October 8, 2025.
Economic Slowdown Impact on Public Sentiment
Purbaya explained that the protests seen in late August and early September reflected public frustration with the weakening economy. He warned that if the government had not acted, the situation could have escalated further.
“The danger was if it wasn’t reversed, it would keep falling and instability would continue to rise. But October is different, we’ve managed to restore some optimism. When the October survey is released, it should trend upward,” he noted.
The minister also emphasized that CCI data plays a crucial role in shaping policy. He argued that consumer sentiment serves as a strong indicator of whether government measures are effective in stabilizing the economy.
Declining Consumer Sentiment and Job Concerns
Another factor dragging down sentiment is pessimism over job availability. BI data shows that the job availability index fell to 92 in September, from 93.2 in August. This marks the fifth consecutive month it has stayed in the pessimistic zone, below the benchmark of 100.
Despite government announcements of various stimulus programs, the numbers show people remain worried about future job prospects. The decline highlights concerns that the labor market is not expanding quickly enough to meet demand. Purbaya acknowledged these fears, stressing that restoring confidence requires both immediate and medium-term solutions.
Government Response Through Stimulus Programs
In response, the government has launched several initiatives aimed at job creation and income support. These include a new internship program for 20,000 recent graduates, with plans to expand gradually to 100,000 participants if absorption improves. Other measures include an expansion of the government-borne income tax (PPh 21 DTP) covering 552,000 tourism sector workers, and insurance contributions for more than 731,000 non-wage workers such as online drivers, couriers, and logistics staff.
The Ministry of Transportation and Ministry of Public Works have also rolled out cash-for-work programs involving more than 600,000 people. Additionally, the government has accelerated regulatory reforms through Government Regulation 28/2025, integrating digital spatial planning into the national licensing system in 50 regions, with a plan to extend coverage to 300 regions in 2026.
Airlangga Hartarto, Coordinating Minister for Economic Affairs, downplayed the decline. He told reporters after the ISEF 2025 event in Jakarta, “It’s still above one hundred.” He stressed that while the index has weakened, consumer confidence technically remains in the optimistic zone.
Outlook for Indonesia’s Economic Stability
Looking ahead, Purbaya expects the October CCI results to show improvement, as recent efforts to stabilize the economy begin to take effect. “It’s still within the sample for October, where the situation has gotten a bit better. It should rise again,” he said.
Analysts, however, caution that sustaining consumer optimism will depend heavily on the government’s ability to deliver jobs and growth. The decline in confidence underscores the urgency of ensuring stimulus programs are effectively implemented and widely felt. Restoring trust in both the economy and government will be essential for Indonesia to maintain stability in the months ahead.
Source: ekonomi.bisnis.com, finance.detik.com
Image: Canva
