BI Reveals Consumer Confidence Index Increases In August 2024

Illustration (Photo: Doc Antara)

JAKARTA - The Bank Indonesia Consumer Survey in August 2024 indicated that consumer confidence in economic conditions had increased compared to the previous month.

This is reflected in the Consumer Confidence Index (IKK) in August 2024 of 124.4, higher than 123.4 in the previous month.

Assistant Governor of the Communication Department of Bank Indonesia (BI) Erwin Haryono said that the increase in consumer confidence in August 2024 was supported by the Current Economic Condition Index (IKE) which remains optimistic and the Consumer Expectation Index (IEK) is strengthening.

"IKE, which remains optimistic, is mainly driven by the Current Income Index. Meanwhile, IEK is recorded to increase in all components of its formation, especially in the Income Expectation Index," he explained in his statement, Monday, September 9.

Erwin said that in August 2024 consumer confidence was observed to remain optimistic in all expenditure categories. The highest increase in IKK was recorded in respondents with expenditures of more than IDR 5 million.

Meanwhile, the Current Economic Condition Index (IKE) and the Consumer Expectation Index (IEK) in August 2024 were recorded at 114.0 and 134.9, respectively.

The increase in IKE in August 2024 was mainly driven by the Current Income Index which increased by 1.5 points to 122.9.

The Employment Availability Index and the Old Goods Purchase Index (Durable Goods) are also maintained in optimistic areas, respectively at 107.6 and 111.5.

Spatially, most cities recorded an increase in IKE, the largest in Pontianak City (9.3 points), Makassar (8.5 points), and Padang (8.3 points). Meanwhile, based on age, IKK increased in the age group by more than 41 years.

Spatially, IKK increased in most cities surveyed, the largest in Pontianak City (13.2 points) followed by Padang (8.8 points) and Makassar (8.6 points).

Furthermore, Erwin said that the respondents' perception of the availability of jobs is currently indicated to remain strong. The increase in the index was recorded in respondents with SLTA and Pascasarjana levels of education.

Meanwhile, consumer confidence in purchasing undurable goods was observed to increase, especially in respondents with an expenditure rate of more than IDR 5 million.

Furthermore, consumer expectations of economic conditions in the next six months have been observed to increase.

This is reflected in the IEK August 2024 which is in the optimistic zone increasing by 1.6 points to 134.9.

Strengthening the IEK is driven by an increase in all its components, namely expectations of income, job availability, and business activities, each increasing to 140.0, 132, and 132.6