Consumer Optimism Increases Driven by Business Expectations and Job Availability

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – Bank Indonesia (BI) reports that there has been an increase in consumer confidence in future economic conditions. Head of the BI Communication Department Erwin Haryono said that this was sticking out based on a survey conducted by the central bank last January.

"Bank Indonesia's consumer survey for January 2023 indicates consumer confidence in economic conditions has increased compared to the achievements in the previous month," he said in a press statement today, Wednesday, February 8.

According to Erwin, the consumer confidence index (IKK) in the past month was 123. This figure is higher than the level two months ago (December 2022), which was 199.9.

"Strengthening consumer confidence in January 2023 was driven by the consumer expectation index (IEK) which recorded an increase in all its constituent components, especially the business activity expectation index and the job availability expectation index," he said.

Meanwhile the current economic conditions index (IKE) remains strong, with an increase mainly occurring in the job availability index.

"Based on expenditure, increased consumer expectations of income were recorded in all groups of respondents, the highest increase was in respondents with spending levels of IDR 2.1 to IDR 3 million. Meanwhile, in terms of age, expectations for future income have increased in all age groups of respondents," he concluded.