February 19, 2026 | 10:24 pm
TEMPO.CO, Jakarta - The level of domestic spending during religious and school holidays during the first quarter of 2026 is expected to boost Consumer Confidence Index (CCI), according to deputy chair of the National Economic Council (DEN) Mari Elka Pangestu.
"Timely disbursements and government spending must accompany this," she said in Jakarta on Thursday, February 19, 2026.
The CCI growth has been evident since the end of last year, while Bank Indonesia data shows CCI reaching record levels in January 2025 at 127.2. It subsequently dropped and hit its lowest point in September 2025 with 115.
Consumer optimism then recovered towards the year-end, reaching 123.5 in December 2025. By January 2026, the Consumer Confidence Index reached 127.
Mari Elka projected the growth to resume in the first quarter of 2026, assisted by major religious holidays—such as Chinese New Year, Eid al-Fitr, and Nyepi—as well as school holidays.
She reminded that the current national economic growth heavily relies on domestic demand, thus the government must ensure smooth fiscal turnover at the beginning of the year.
She believed fiscal spending in early 2025 had been hampered by the new government transition and various budget reallocations. She stressed that these should not be repeated this year.
In addition to consumption, Mari Elka highlighted the importance of restoring investor confidence. This becomes a priority following issues raised by several rating agencies last month, such as MSCI and Moody's Ratings, regarding fiscal sustainability and policy consistency.
She emphasized that the period leading up to May 2026, when MSCI is scheduled to review Indonesia's rating, must be leveraged to optimize domestic capital market reform.
Furthermore, Mari Elka highlighted the importance of tangible deregulation measures to improve the investment climate in Indonesia in order to capture the global investment relocation opportunities, as many are eyeing Indonesia.
She added that this opportunity will be even more optimal if Indonesia can sign a favorable trade agreement with the United States. "The trade agreement is a great opportunity to attract investment, and ultimately, create job opportunities," said Mari Elka.
Read: Most Food Prices Fall Ahead of Chinese New Year in Indonesia
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