Indonesian Trade Minister Budi Santoso announced that consumer confidence in the national economy remains at optimistic levels during February 2026, with the Consumer Confidence Index reaching 125.2, indicating continued optimism among citizens regarding the economic situation.
This statement was made during a press conference titled "The Impact of Eid al-Fitr on Trade and Tourism," where Santoso explained that data derived from a Consumer Survey conducted by Bank Indonesia reflects a positive outlook toward the current economy and its future prospects.
Details of the Event
Santoso noted that the Economic Conditions Index (IKE) reached 115.9, which is an improvement compared to the previous month, which recorded 115.1. This improvement reflects stability in citizens' assessments of the economic situation and their purchasing power.
The Consumer Expectations Index (IEK) also showed a high level of optimism, recording 134.4, reflecting positive expectations about the future. With increasing optimism, retail sales performance in February 2026 is expected to witness significant growth, both year-on-year and month-on-month.
Background & Context
Indonesia is considered one of the largest economies in Southeast Asia, with a significant portion of its economic growth reliant on domestic consumption. During Ramadan, the demand for consumer goods increases, boosting commercial activity. Historically, the country has experienced growth in consumption during this period, contributing to enhanced economic confidence.
In recent years, the Indonesian government has worked to improve the business environment and enhance investments, which has contributed to raising consumer confidence levels. Additionally, improvements in global economic conditions have helped bolster this positive trend.
Impact & Consequences
Data indicates that rising consumer confidence can lead to increased consumer spending, which in turn boosts economic growth. This growth is expected to improve living standards and increase job opportunities across various sectors.
Furthermore, increased commercial activity during the holiday period may contribute to enhancing government revenue from taxes, enabling the government to implement new development projects. This improvement in confidence may also bolster investments from both local and foreign companies.
Regional Significance
Indonesia is an important trading partner for many Arab countries, and these positive indicators could impact trade relations between the two sides. With increasing Arab investments in Indonesia, these developments may open new avenues for economic cooperation.
Moreover, Indonesia's success in boosting consumer confidence could serve as a model for Arab countries seeking to strengthen their local economies, especially in light of global economic challenges.