BI Survey: Consumer Confidence Is Still Strong In The Condition Of The Indonesian Economy

Illustration. (Photo: Doc. Antara)

JAKARTA - The Bank Indonesia (BI) Consumer Survey in September 2023 indicated that consumer confidence in economic conditions remained strong, as reflected in the September 2023 Consumer Confidence Index (IKK) which was maintained in the optimistic zone at the 121.7 level.

"Consumer confidence remains strong in September 2023 driven by the Current Economic Condition Index (IKE) and the Consumer Expectation Index (IEK) which remains optimistic," said BI Communications Department Executive Director Erwin Haryono in an official statement in Jakarta, quoted from Antara, Monday 9 October.

However, he said the September 2023 IKK was lower than the August 2023 IKK which was 125.2.

IKE is maintained, supported by optimism in all components of its formation, especially the Current Income Index. Meanwhile, IEK remains strong, mainly supported by the Income Expectation Index.

In the quarterly manner, the IKK in the third quarter of 2023 indicates that consumer optimism remains strong with a CPI of 123.5, although lower than 127.2 in the second quarter of 2023.

The decline was caused by the decline in IKE and IEK, namely for components of employment availability and current income on IKE, as well as all IEK components.

In September 2023, consumer perceptions of current economic conditions were maintained, as reflected in IKE September 2023 which remains in an optimistic area of 112.2, although not as high as 115.5 in August 2023.

The Old Goods Purchase Index (durable goods) was recorded at 109.3 down 2.3 points from August 2023. Furthermore, the Current Income Index and the Employment Availability Index also decreased by 3.4 points and 4.2 points to 117.6 and 109.6 in September 2023, respectively.

Meanwhile, consumer expectations of economic conditions in the next six months are observed to remain strong. This is reflected in the September 2023 IEK which was recorded to be in the optimistic zone of 131.3, although not as high as 135.0 in August 2023.

Stay optimistic that the September 2023 IEK will be driven by the strongness of all components of its formation. The estimated income was recorded in the optimistic zone of 135.2, relatively stable in the previous month.

Meanwhile, the expectations for the availability of employment opportunities and business activities of the Consumer Survey (SK) were recorded at 129.6 and 129.0 respectively in September 2023, lower than 132.5 and 137.4 in August 2023.

The average proportion of consumer income for consumption (average property to consumer ratio) in September 2023 was recorded at 76.3 percent, an increase from 75.6 percent in the previous month.

Meanwhile, the average proportion of installment/debt payment (debt to income ratio) was 8.5 percent, relatively stable compared to the proportion in the previous month.

The proportion of consumer income stored (saving to income ratio) decreased in September 2023, which was 15.2 percent.