The consumer confidence in July, which was not as high as the previous month, was observed in all expenditure categories, especially on respondents with expenditures of 4.1 million rupiahs (some 276 U.S. dollars) to five million rupiahs (336.8 U.S. dollars) per month, per person.

Jakarta (Indonesia Window) – A consumer survey in July 2022 by Indonesia’s central bank, Bank Indonesia (BI), indicated that consumer optimism for economic conditions was maintained, as reflected in the Consumer Confidence Index (CCI) of 123.2.

The CCI remains at an optimistic level as its value is higher than 100, although not as high as that in the previous month which was 128.2.

"The maintained consumer optimism is supported by strong expectations of future economic conditions, especially expectations of income and employment," BI’s Communications Department Head Erwin Haryono said in an official statement here on Monday.

July’s CCI which was not as high as the previous month, was observed in all expenditure categories, especially on respondents with expenditures of 4.1 million rupiahs (some 276 U.S. dollars) to five million rupiahs (336.8 U.S. dollars) per month, per person.

Based on age, the slightly decrease of CCI in July 2022 is indicated in most groups of respondents, especially those aged 31-40 years old.

Meanwhile, consumer expectations for the forecast of economic conditions in the next six months are observed to remain strong, as reflected in the Economic Conditions Expectation Index in July 2022 of 135.5 or still at an optimistic level, which is above 100, although slightly down from 141.8. recorded in June.

"Consumer expectations remain strong regarding future economic conditions, mainly supported by expectations of income which decreased by 2.4 points to 138.3 in July 2022," Erwin explained.

Meanwhile, expectations for the availability of future jobs and expectations for future business activities were also maintained at an optimistic level, although they fell by 8.7 and 8.0 points to 134.5 and 133.5, respectively, he continued.

The BI survey also showed that the average proportion of consumer income for consumption was observed to decline in July 2022, as seen from the average proportion of income for consumption which decreased from 74.2 percent to 73.4 percent.

Meanwhile, the average proportion of installment payments or debt (debt to income ratio) was 9.6 percent, not much different from 9.7 percent in the previous month, and the proportion of consumer income saved increased from 16.2 percent to 17. 0 percent.

Based on expenditure groups, the average share of consumption to income was observed to decline in some expenditure categories, except for respondents with expenditure levels of 2.1 million rupiahs to three million rupiahs (about 202 dollars) and 3.1 million rupiahs (about 208.8 dollars) to four million rupiahs (about 269.4 dollars).

"Meanwhile, an increase in the portion of savings to income was recorded by respondents with expenditure levels of 1–2 million rupiahs (some 67.3-134.7 dollars) and 2.1–3 million rupiahs (some 141.5-202 dollars) per month," Erwin said.

Reporting by Indonesia Window