Consumer Confidence Index Drops, Bank Indonesia: Indonesian Economy Remains Strong

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) reported that the consumer confidence index in June 2024 regarding economic conditions remained strong compared to the previous month.

Based on the results of a consumer survey, Bank Indonesia (BI) indicated that the consumer confidence index (IKK) in June was 123.3, or lower than the previous month of 125.2.

The strong consumer confidence in June 2024 was driven by the Current Economic Conditions Index (IKE) and the Consumer Expectation Index (IEK) regarding future economic conditions which remained optimistic. Both indexes remained strong, supported by optimism in all of their constituent components.

Meanwhile, the decline in the IKK was driven by a decline in the Current Economic Conditions Index (IKE) and the Consumer Expectation Index (IEK).

IKE in June 2024 was recorded at 112.9, or down from the previous month which was recorded at 115.4. Meanwhile, IEK was recorded at 133.8 or down from the previous month which was recorded at 135.0.

In June 2024, consumer confidence was observed to have decreased in almost all spending categories, and only respondents with spending above IDR 5 million experienced an increase, namely from 127.8 in May 2024 to 130.3 in June 2024.

Meanwhile, based on age group, only respondents in the 31 to 40-year age group who increased, namely from 128.3 in May 2024 to 127.8 in June 2024.

Spatially, the decline in the IKK occurred in several cities surveyed by BI, the deepest in Makassar City by 20.5 points, followed by Pontianak by 20.5 points and Pangkal Pinang by 10.3 points.

Despite the decline, Bank Indonesia stated that overall the IKK was still in the optimistic zone, or the index was above 100.