Indonesia banking and consumer sentiment show signs of recovery

Indonesia's banking sector and consumer sentiment are showing signs of recovery and optimism for the third quarter of 2026. According to the Financial Services Authority (OJK), the Banking Business Orientation Index (IBP) reached an optimistic level of 56 in July 2026. This optimism is supported by strong performance expectations and controlled risk perceptions, despite global and domestic economic uncertainties.

OJK Executive Head of Banking Supervision Dian Ediana Rae noted that banks expect to maintain credit quality, manage liquidity risks, and see growth in third-party funds. The Risk Perception Index also remains in the optimistic zone at 57.

Simultaneously, Indonesia's Consumer Confidence Index (IKK) rose to 118.5 in August 2026, up from 116.8 in July. Finance Minister Purbaya Yudhi Sadewa attributed this reversal in sentiment to the impact of government stimulus and economic policies implemented in late July and early August. This increase marks the first upward trend in consumer confidence following several months of decline since the beginning of the year.