The Consumer Confidence Index Increases, The People Love to Shop

Indonesia's Traditional Market

The Consumer Confidence Index in December 2022 reached 119.9. This figure shows growth compared to the previous month, which reached 119.1. This consumer confidence can be seen from the frequency of public spending and increases in the income index.

This report comes from Bank Indonesia (BI). BI, Monday (9/1/), explained, “Strengthening consumer confidence in December 2022 was driven by the Current Economic Condition Index (IKE) which recorded an increase in all its constituent components, especially the current Income Index.”

The current income index rose by 3.9 points to 120.3 in December 2022. Consumer perceptions of current income compared to 6 months ago were observed to increase in several expenditure categories, namely respondents with spending levels above IDR 3.1 million.

Based on age group, the Current Income Index also indicated an increase in some age categories of respondents, especially in the group of respondents aged 31-40 years.

Furthermore, the Employment Availability Index is 110.9. The index recorded an increase in all categories of education, except for respondents with postgraduate education. By age, the increase in the index occurred in some groups of respondents, with the largest increase in the age group 31-40 years.

The Durable Goods Purchase Index also increased to 106.2. Consumer confidence in purchasing durable goods was also observed to have increased compared to the previous month at some of the respondents’ spending levels, the highest increase was in respondents with expenditures above Rp. 5 million per month.

Based on age, the increase in consumer optimism towards purchasing durable goods is also indicated to increase in respondents aged 31-40 years.

Meanwhile, state spending in 2022 grew positively and continued to be optimized, recording a realization of IDR 3,090.8 trillion or 99.5% of the target based on Presidential Regulation Number 98 of 2022, growing 10.9%. The realization of this expenditure consists of the realization of central government spending and transfers to the regions (TKD).

Central government spending reached IDR 2,274.5 trillion or 98.8% of Presidential Decree 98/2022, growing 13.7% from the 2021 realization.

This amount consists of K/L expenditure realization of IDR 1,079.3 trillion or 114.1% of Presidential Regulation 98/2022, influenced by among others an increase in K/L spending ceilings to support the Covid-19 handling program and national economic recovery in health and social protection.

Additional spending in the health sector, mainly for handling Covid-19 patients, payment of incentives for health workers, and procurement of medicines/vaccines for handling Covid-19.

Meanwhile, additional spending in the field of social protection is mainly to maintain purchasing power and ease the burden on public spending through direct cash assistance (BLT) programs for cooking oil, BLT BBM, and wage subsidy assistance, as well as for natural disaster management in several regions.