Bank Indonesia: Consumer Confidence Against The Economy Is Increasing

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) reports that a survey conducted in December 2022 found indications that consumer confidence in economic conditions was increasing.

Head of the BI Communication Department Erwin Haryono said that last month the Consumer Confidence Index (IKK) was at the level of 119.9.

"That figure is better than the position of IKK in November 2022 which amounted to 119.1", he said in a written statement on Monday, January 9.

According to Erwin, the strengthening of consumer confidence in December 2022 was driven by the current Economic Condition Index (IKE).

"This is recorded to increase in all components of its formation, especially the current community income index," he said.

Meanwhile, the Consumer Expectation Index (IEK) on economic conditions in the next six months has been observed to decline slightly. This is reflected in the December 2022 Economic Condition Expectation Index (IEK) of 127.3, slightly lower than 127.9 in November 2022.

"Consumer expectations of future economic conditions have decreased mainly due to a decrease in expectations of job availability and business activities," he said.

Meanwhile, the average proportion of consumer income for consumption was observed to increase slightly, as indicated by the average proportion (average property to consumer ratio) of 75.6 percent in December 2022 from 74.7 percent in the previous month.

Meanwhile, the average proportion of installment/debt payment (debt to income ratio) was 9.2 percent or slightly decreased compared to the proportion in the previous month.

On the other hand, the proportion of consumer income stored (saving to income ratio) was recorded at 15.2 percent, slightly lower than 15.7 percent in November 2022.

"Based on the expenditure group, the average portion of consumption to income was observed to increase in several expenditure categories," Erwin concluded.