JAKARTA - The Bank Indonesia Consumer Survey in June 2020 indicated that consumer confidence towards economic conditions had improved, although it was still at <100. This is reflected in the Consumer Confidence Index (IKK) of 83.8 in June 2020, an increase from 77.8 in May 2020.
Consumer confidence was observed to improve in all categories of respondents, both according to expenditure levels and age groups. Spatially, consumer confidence improved in 14 survey cities, with the highest improvement in Mataram, followed by Jakarta and Samarinda.
The improvement in consumer optimism was mainly due to stronger consumer expectations for forecast economic conditions in the next 6 months, in line with forecasts for the easing COVID-19 pandemic in Indonesia.
Strengthening on the expectations side was mainly supported by forecasts of expansion in business activity that increased in the next 6 months. On the other hand, consumer perceptions of current economic conditions are monitored to be still low and continue to weaken, mainly due to a decrease in consumer optimism about purchasing durable goods. (LM)