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Indonesia's Consumer Confidence Remains Resilient in April Amid Solid Q1 Expansion

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Indonesia's Consumer Confidence Remains Resilient in April Amid Solid Q1 Expansion

Indonesia's consumer confidence stayed upbeat in April, reflecting continued optimism as growth stayed relatively strong at the start of 2026.

Bank Indonesia said its Consumer Confidence Index edged up to 123 in April from 122.9 in March, remaining firmly in optimistic territory above the 100-point threshold, according to its latest survey released on Monday.

"The improvement was mainly driven by stronger assessment of current economic conditions," the central bank said.

"The Current Economic Conditions Index rose to 116.5 from 115.4 in the previous month, while the Consumer Expectations Index eased slightly to 129.6 from 130.4 but remained optimistic," it added.

The upbeat sentiment comes as Indonesia's economy continued to expand at a solid pace in the first quarter.

Indonesia's gross domestic product grew 5.61% year over year in the January-to-March period, stronger than the 5.30% expected by analysts in a Reuters poll and the 5.39% growth recorded in the fourth quarter of 2025.

Accommodation and food service activities recorded the strongest growth on the production side, while government consumption led expenditure growth, according to official data.

The latest figures place Indonesia among the stronger-performing economies in Asia during the first quarter, trailing Taiwan's AI-fueled 13.7% surge and Vietnam's 7.83% growth supported by robust exports.

However, the country continues to face external pressures from the conflict in the Middle East, which has pushed up global energy prices and weighed on the rupiah.

The currency slid to a record low of 17,445 per U.S. dollar earlier this month as global risk sentiment deteriorated.

On a quarterly basis, the economy contracted 0.77% from the fourth quarter, with mining and quarrying posting the steepest decline.

Java remained the largest contributor to the economy in the first quarter, accounting for 57.24% of Indonesia's economic activity and recording annual growth of 5.79%.

The government is targeting economic growth of 5.4% in 2026, while Bank Indonesia forecasts growth in a range of 4.9% to 5.7% for the year.

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