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

Implications

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.

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.