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6 June 2025 (closed)
Jakarta Composite Index (7,113.42) +44.39 +0.63%
Assessing the State of the Indonesian Economy – What Do the Latest Macroeconomic Data Say?
In another article in this May 2025 edition, we discussed Indonesia’s Q1-2025 gross domestic product (GDP) data in detail. So, the focus of the article you’re reading right now will be on the latest economic data of Indonesia (that cover the second quarter of the year).
Last month, we noted that Indonesia’s economic growth has been decelerating amid a mixture of global and domestic matters, hence the International Monetary Fund (IMF) even cut its projection for Indonesia’s economic growth in 2025 and 2026 to 4.7 percent year-on-year (y/y). This would be disappointing because a growth level of 5.0 percent (y/y) is by many considered the minimum growth level for Indonesia to safeguard a stable supply of new jobs that is enough to absorb the millions of job-seekers who enter the labor market of Indonesia, each year.
So, let’s zoom in on the latest available macroeconomic data that were released by Badan Pusat Statistik (BPS), Bank Indonesia, and other institutions in Indonesia.
Consumer Confidence in Indonesia
Consumer confidence is always an interesting statistic when assessing the economic conditions of a country. After all, when consumers are confident and optimistic, they will spend more on various products and services, thereby triggering an increase in economic activity. For the Indonesian economy, consumers are crucial as household consumption is the biggest contributor to Indonesian GDP.
In recent months, we’ve been a bit concerned over Indonesia’s consumer confidence. Yes, overall, consumer confidence does remain strong at 121.7 points in April 2025, well above the 100.0 point threshold that separates confidence from pessimism and also a modest increase from the reading of 121.1 points in the preceding month. But, we did become used to readings near (or above) 130.0 points, and so the index does currently show a decline in consumer confidence in Indonesia.
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This article discusses consumer confidence, retail sales, credit growth, car & motorcycle sales, and manufacturing.
The full article is available in our May 2025 report. Want to order this report? It (an electronic report, PDF, in English) can be ordered by contacting us through email and/or WhatsApp:
- info@indonesia-investments.com
- +62(0)882.9875.1125
Price of this report:
Rp 150,000 (or equivalent in other currencies)
Take a glance inside the report here!
