BI Calls Consumer Confidence Increased Supported By IKE And IEK

Bank Indonesia (Photo: Antara)

JAKARTA - The Bank Indonesia (BI) Consumer Survey in October 2023 indicated that consumer confidence in economic conditions had increased. This increase is compared to the previous month.

"This is reflected in the October 2023 Consumer Confidence Index (IKK) of 124.3, higher than 121.7 in September 2023," said BI Communications Department Director Nita A Muelgini to the media in Jakarta, Wednesday.

Nita said the increase in consumer confidence in October 2023 was driven by the strengthening of the Current Economic Condition Index (IKE) and the Consumer Expectation Index (IEK). IKE recorded an increase, especially in the Employment Availability Index.

Meanwhile, IEK is also recorded to increase in all components of its formation, namely the Employment Availability Expectation Index, the Business Activity Expectation Index, and the Income Expectation Index.

In October 2023, consumer perceptions of current economic conditions increased, as reflected in IKE October 2023 which is in an optimistic area of 114.4 higher than 112.2 in September 2023.

The increase in IKE October 2023 was mainly driven by the Employment Availability Index which was recorded at 117.5, an increase of 7.9 points from September 2023.

In addition, consumer expectations of economic conditions in the next six months have been observed to strengthen. This is reflected in the October 2023 Consumer Expectation Index (IEK) which was recorded at 134.2, higher than 131.3 in September 2023.

The strengthening of the October 2023 IEK was driven by the increase in all components of its formation. Expectations for job availability and business activities were recorded at 134.0 and 132.8 in October 2023, higher than 129.6 and 129.0 in September 2023, respectively.

"Evidence expectations were also recorded in the optimistic zone of 135.7, an increase from 135.2 in the previous month," he said.