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Indonesian consumers less confident about the economy: BI

Jakarta Globe - June 10, 2024

Jayanty Nada Shofa, Jakarta – Indonesian consumers remained optimistic about the country's economic conditions in May, but they have grown less confident compared to the previous month, according to a report by Bank Indonesia (BI).

The central bank revealed Monday that Indonesia scored 125.2 in the consumer confidence index (CCI). A reading beyond 100 means that consumers are optimistic about the country's economy: however, the May readings are still lower compared to April's CCI, which stood at 127.7.

Data shows that consumers who spend within a range of Rp 4.1 million (approximately $251) and Rp 5 million are the most optimistic compared to other groups, recording a CCI score of 129.1. The least confident are those who spend Rp 1-2 million (114.9). Consumers who are between 31 and 40 years old have a CCI of 128.3, making them the most confident among other age groups. Consumers who are older than 60 are the least optimistic –and were becoming far less confident– about Indonesia's economy as their CCI went down from 117.3 in April to 112.8 the following month.

BI's report revealed that Indonesia's consumer expectation index (CEI) recorded 135 in May, down by a point compared to 136 the previous month. This index measured how confident Indonesian consumers are in the prospects of the country's economy for the next 6 months.

Indonesia's current economic condition index (CECI) – which measures how Indonesians view today's economy as the name suggests – also dropped from 119.4 in April to 115.4 the following month.

"The robust CCI in May 2024 is driven by how confident Indonesian consumers are towards the current and future economic conditions," Bank Indonesia wrote in its report.

Approximately 4,600 households across 18 major cities, including Jakarta and Bandung, took part in the CEI survey. Indonesia's economy grew by 5.11 percent year-on-year in the first quarter of 2024.

Source: https://jakartaglobe.id/business/indonesian-consumers-less-confident-about-the-economy-b