JAKARTA - The Bank Indonesia Consumer Survey in July 2020 indicated that consumer confidence in economic conditions had improved, although it was still in the pessimistic zone (<100). This is reflected in the Consumer Confidence Index (IKK) of 86.2 in July 2020, up from 83.8 in the previous month.
Consumer confidence was observed to strengthen across all age groups of respondents and in almost all categories of expenditure levels. Spatially, consumer confidence improved in the 13 survey cities, with the highest increases in Mataram, Denpasar, and Pangkal Pinang.
The strengthening of consumer confidence in July 2020 was driven by improving consumer perceptions of current economic conditions, which is reflected in improvements in all its constituent components, namely confidence in income, availability of employment, and purchases of durable goods.
This is in line with the economic activity that has increased again after the relaxation of Large-Scale Social Restrictions (PSBB) in various cities in Indonesia. Meanwhile, consumer expectations regarding the forecast for economic conditions in the next 6 months were observed to be relatively stable, in line with limited expectations for income and job availability amid expectations of improving business activity. (LM)