Indonesia reports declining price index and lower consumer confidence

Indonesia's economic indicators show mixed trends for early August 2026. According to the Central Bureau of Statistics (BPS), 21 provinces experienced a decline in the Price Development Index (IPH) during the first week of August. At the local level, 161 regencies and cities reported a decrease in IPH, while 65 saw an increase. Key commodities contributing to price rises across several regions include chicken meat and beef, as well as chili peppers in areas outside of Java and Sumatra.

Simultaneously, Bank Indonesia reported a decline in the Consumer Confidence Index (IKK), which fell to 116.8 in July 2026 from 117.8 the previous month. Despite the dip, the index remains at an optimistic level (above 100). This optimism is supported by the Current Economic Condition Index (IKE) at 107.9 and the Consumer Expectation Index (IEK) at 125.7, although both metrics saw slight decreases from their June levels.