JAKARTA - Bank Indonesia Consumer Survey in December 2019 indicated that consumer optimism was stronger. This is indicated by the December 2019 Consumer Confidence Index (IKK) which rose to 126.4, from the previous month's IKK of 124.2. Increased consumer optimism occurred evenly across all expenditure groups.
Increased consumer optimism is driven by improved consumer perceptions of current economic conditions and consumer expectations of future economic conditions. Improved consumer perceptions of current economic conditions are driven by better perceptions of job availability, current income, and purchases of durable goods. Meanwhile, consumer expectations for better economic conditions in the future will be influenced by earnings expectations and improving job availability.
Consumers are forecasting an upward pressure on price increases in the next 3 months (March 2020). This is indicated by the 3-month Price Expectation Index that will increase compared to the index in the previous month. The increase in price pressure was influenced by consumer expectations of price adjustments in the administered prices group. In addition, the upward pressure on prices in the next 6 months (June 2020) is expected to increase in line with prices that remain high after Idulfitri. (LM)