This paper empirically investigates the relationship between financial development and household consumption expenditure at Eastern Indonesia Region. Panel data regression models are applied to consumption expenditure data as dependent variables, savings and consumer loans  from the household sector as independent variables. The results of this research suggest that financial development in Eastern Indonesia Region have a significant  impact on household consumption expenditure. Savings have a significant positive effect on increasing household consumption expenditure, meanwhile consumer loans have a significant negative effect on increasing household consumption expenditure.

Keywords: household sector, saving, loans, consumption expenditure

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