BI Says Public Confidence in Current Economic Conditions is Increasing

JAKARTA - Bank Indonesia (BI) said that consumers' perceptions of economic conditions in December 2023 will increase, compared to the previous month.

Based on the results of the BI Consumer Survey in December 2023, the December 2023 Consumer Confidence Index (IKK) was 123.8, higher than 123.6 in the previous month.

Head of the BI Communications Department, Erwin Haryono, said that increasing consumer confidence in December 2023 was driven by the strengthening of the Current Economic Conditions Index (IKE).

"IKE was recorded to have increased, especially in the Durable Goods Purchase Index. Meanwhile, the Consumer Expectations Index (IEK) regarding economic conditions in the next 6 months remains strong, supported by the Income Expectations Index," he explained in his official statement, Tuesday 9 January.

The Current Economic Conditions Index (IKE) and Consumer Expectations Index (IEK) for December 2023 were recorded at 113.6 and 133.9 respectively.

In December 2023, consumer confidence was observed to remain optimistic in all spending categories.

Increased optimism was recorded among respondents with expenditures of IDR 1-2 million.

Based on age, consumer confidence in December 2023 was also observed to be optimistic, especially in the 20-30 year age group. Spatially, IKK increased in some of the cities surveyed, the largest in Manado City (9.3 points), followed by Makassar (7.5 points) and Medan (4.8 points).

Meanwhile, several other cities recorded a decline in IKK, the deepest in Bandar Lampung City (9.3 points), followed by Padang (6.3 points) and Mataram (4.5 points).

On a quarterly basis, IKK for the fourth quarter of 2023 indicates that consumer optimism has increased with an IKK of 123.9, higher than 123.5 in the third quarter of 2023. This increase was driven by IKE and IEK which remained optimistic.

In December 2023, consumer perceptions of current economic conditions will increase, as reflected in the December 2023 IKE which is in the optimistic area of ​​113.6, higher compared to 113.0 in November 2023.

The increase in IKE in December 2023 was mainly driven by the Durable Goods Purchase Index which was recorded at 113.0, an increase of 2.8 points from November 2023.

Meanwhile, the Job Availability Index and Current Income Index were relatively stable although they decreased slightly by 0.5 points and 0.4 points respectively to 112.7 and 115.2 in December 2023.

Spatially, several cities recorded an increase in IKE, the largest in Manado City (14.2 points), followed by Makassar (11.8 points) and Medan (9.4 points).

Meanwhile, several other cities recorded a decrease in IKE, the deepest in Bandar Lampung City (11.7 points), followed by Mataram (7.5 points) and Padang (7.2 points)

In December 2023, consumer confidence in purchasing durable goods was observed to increase at all spending levels, especially among respondents with spending levels of IDR 1-2 million.

Based on age group, the increase in the Durable Goods Purchase Index occurred in the age group over 40 years.

Meanwhile, respondents' optimism regarding income is currently relatively stable compared to the previous month, with a decline especially among respondents with expenditure levels of IDR 4.1-5 million.

Based on age group, all of them are in the optimistic area, with a decrease in the index occurring in the group of respondents aged 20-40 years.

Furthermore, respondents' perceptions of the availability of job opportunities are currently also indicated to be relatively stable compared to the previous month. The index was recorded to have decreased, especially for respondents with postgraduate education levels and the age group 51-60 years.