BI Records Consumer Confidence Index Increases To 125 In January 2024

JAKARTA - Bank Indonesia noted that the Consumer Confidence Index increased in January 2024, when compared to December 2023. This indicates consumer confidence in economic conditions has increased compared to the previous month.

The results of the Bank Indonesia (BI) Consumer Survey show that the Consumer Confidence Index (IKK) in January 2024 is 125.0, an increase compared to December 2023 at 123.8.

The increasing consumer confidence in January 2024 was driven by the strengthening of consumer confidence in current economic conditions and expectations of future economic conditions. Reflected by the Current Economic Condition Index (IKE) and the January 2024 Consumer Expectation Index (IEK) were recorded at 115.6 and 134.5, respectively.

In January 2024, consumer confidence was observed to remain optimistic in all expenditure categories. The highest increase in optimism was recorded in respondents with an expenditure of IDR 4.1 million-IDR 5 million.

Based on age, consumer confidence in January 2024 is also observed to be optimistic, especially in the 20-30 year age group.

Spatially, IKK increased in some cities surveyed. The largest was in the city of Medan with 14.5 points, followed by Ambon with 11.2 points and Padang with 8.8 points.

Meanwhile, some other cities recorded a decline in IKK, especially in Palembang City 9.4 points, followed by Pangkal Pinang 4.2 points and Bandung 4.1 points.

In January 2024, consumer perceptions of current economic conditions will increase, as reflected in IKE January 2024 which is in an optimistic area of 115.6, higher than 113.6 in December 2023.

The increase in IKE in January 2024 was mainly driven by the Employment Availability Index and the Current Income Index which recorded an increase of 5.7 points and 1.3 points to 118.4 and 116.5 in January 2024, respectively.

Meanwhile, IEKs showing consumer expectations of the economic conditions in the next 6 months are also recorded to increase. This is reflected in the January 2024 Consumer Expectation Index (IEK) which is in the optimistic zone of 134.5, higher than 133.9 in December 2023.

The increase in IEK January 2024 was driven by expectations of the availability of employment opportunities and business activities, which were recorded at 133.7 and 134.9 in January 2024, an increase from 129.9 and 132.2 in December 2023, respectively.