Indonesia's August consumer confidence rises to 118.5 as saving share falls to 15.8%

Published 28 Sep 2026Data as of 9 Sep 2026IndonesiaMacro & households

BI's August consumer confidence index (IKK) was 118.5, up 1.7 points from 116.8 in July.
The consumption share of income rose to 74.2%; the saving share fell to 15.8%.
The instalment share eased to 10.0% (down 0.5 pp from 10.5% in July).

Facts

Confidence: the IKK was 118.5 in August 2026, up 1.7 points from 116.8 in July. Readings above the neutral level indicate optimism. The income expectations index was 134.9 (up from 133.6 in July). Source: Bank Indonesia (BI), Consumer Survey August 2026. ¹

Use of income: consumption 74.2% (up 1.5 pp from 72.7% in July), instalments 10.0% (down 0.5 pp from 10.5% in July), saving 15.8% (down 1.0 pp from 16.8% in July). Definition: average allocation of respondents' household income. Same source. ²

Analysis

Month on month, the rise in the consumption share was funded by a lower saving share and a lower instalment share: confidence is improving while savings are being drawn down. In the Philippines, consumer confidence for July–September also improved to −29.8% (up from −42.0% in Q2 2026, BSP); household sentiment is recovering across the region, but the Philippine index remains negative.

Implications

ExecutivesRecovering appetite to spend can translate into credit demand, but it should be distinguished from improved repayment capacity.

InvestorsA lower saving share means thinner household buffers and may raise the sensitivity of consumer credit arrears.

OperatorsIn underwriting, weight observed liquidity, such as account-balance trends and the stability of salary credits, over sentiment.

Counterpoints and uncertainties

This is a one-month change and may be within survey sampling error. The lower instalment share may reflect restrained new borrowing rather than lighter debt burdens, so interpretation is not one-directional.

Figures: see definitions

Consumer confidence index (BI): 118.5 (up 1.7 points from 116.8 in July)
Readings above the neutral level indicate optimism.
. Bank Indonesia Consumer Confidence Index (IKK). Bank Indonesia Consumer Survey. Basis date: 31 Aug 2026. Source: Bank Indonesia: Survei Konsumen Agustus 2026 (PDF)
Share of income saved: 15.8% (down 1.0 pp from 16.8% in July). Average share of household income allocated to saving. Bank Indonesia Consumer Survey. Basis date: 31 Aug 2026. Source: Bank Indonesia: Survei Konsumen Agustus 2026 (PDF)

Sources

Reports are for information only and are not investment advice. Methodology: sources, verification and definitions