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    In November, Indonesia’s consumer confidence increased from 121.2 to 124, indicating improved public sentiment.

    by VT Markets
    /
    Dec 9, 2025
    Consumer confidence in Indonesia increased from 121.2 to 124 in November, showing that people are feeling more positive about the country’s economy. This boost can be connected to steady economic growth and stable indicators. As confidence affects spending, this trend could lead to higher consumer spending, which would help the economy grow.

    Economic Implications Of Rising Consumer Confidence

    Economists are paying close attention to this trend because consumer confidence drives economic growth. If confidence continues to rise, it could influence policies and market behaviors. This increase represents a hopeful change in Indonesia’s economic environment, which would benefit both businesses and investors. The jump in consumer confidence to 124 in November is a strong positive sign. It indicates that domestic demand, the foundation of Indonesia’s economy, is gaining strength as we approach the new year. We can expect more activity in consumer-focused sectors.

    Impact On Financial Markets

    This renewed optimism is likely to boost the Jakarta Composite Index (JCI). This is supported by the solid 4.9% GDP growth seen in the third quarter of 2025, demonstrating that the economy is on stable ground. We are considering buying call options on the JCI, with expirations slated for the first quarter of 2026. For the currency market, this strong domestic outlook means that Bank Indonesia is unlikely to cut its benchmark interest rate from the current 6.25%. With inflation in November steady at a manageable 2.8%, the central bank can maintain a stable or cautious approach, which supports the Rupiah. Thus, shorting USD/IDR futures or purchasing put options on the pair could be a smart strategy. We remember a similar situation during the post-pandemic recovery in 2022-2023, where rising consumer confidence led to significant market gains. However, we also need to be aware of the potential volatility in global energy prices, which may unexpectedly affect currency and inflation. Therefore, using options to manage risk on these trades could be a more sensible approach in the coming weeks. Create your live VT Markets account and start trading now.

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