Bank Indonesia has conducted a consumer survey, the Consumer Confidence Index (IKK), last February. The survey shows that the IKK is at 113.1. This figure shows a decline. Because last January, the consumer confidence index was still at 119.6.
Head of the BI Communications Department Erwin Haryono explained the decline in consumer confidence because consumer expectations for future economic conditions were limited due to the COVID-19 pandemic.
Consumers are still pondering about the economic situation that is not working properly. They are still doubtful because of the increasing number of positive cases of Covid-19.
Furthermore, declining consumer confidence was also due to the continued stricter implementation of Community Activity Restrictions (PPKM) in several areas.
“Consumer confidence in February 2022, which was not as high as the previous month, was caused by expectations of more limited future economic conditions, both expectations of income, availability of jobs and business activities, although they were still in the optimistic area,” Erwin said in an official statement, Wednesday ( 9/3).
In the survey, several age criteria were explained for the presentation of confidence. Based on age group, elderly people over 60 years old have the lowest confidence index, which is 93.5. Meanwhile, people aged between 20-30 years were the highest at 117.1.
The Current Economic Condition Index (IKE) also fell from 100.9 to 95.5. Erwin said this happened because several supporting indexes, such as the current income index, also fell by minus 9.4 to 102.5.
He added, “The Job Availability Index and the Durable Goods Purchase Index also fell by minus 6.6 and minus 0.3 points to 89.9 and 94, respectively.”
The Consumer Confidence Index is a simple average of the Current Economic Condition Index and the Consumer Expectations Index. The Current Economic Condition Index includes consumer confidence about current income, timeliness to purchase durable goods, and job availability, by comparing current conditions and 6 months ago.
Furthermore, the Consumer Survey is a monthly survey by Bank Indonesia to determine the level of consumer confidence in the current economic conditions. This condition is reflected in consumer perceptions of current economic conditions and consumer expectations of future economic conditions.
The Consumer Confidence Index as a result of the Consumer Survey is one indicator of the development of household consumption in GDP.