The Bank Indonesia Consumer Survey for May 2024 indicates sustained consumer confidence in the economy, with the Consumer Confidence Index (CCI) at an optimistic 125.2. This confidence is driven by positive perceptions of current economic conditions and future expectations, according to Erwin Haryono, Assistant Governor and Head of BI's Communication Department. The Current Economic Condition Index (CECI) is 115.4, and the Consumer Expectation Index (CEI) for May 2024 is 135.0. Optimism is evident across all spending categories, with the highest among those spending IDR 4.1-5 million, and across all age groups. Spatially, the CCI increased most notably in Manado (9.6 points), Makassar (5.8 points), and DKI Jakarta (2.8 points), while it decreased in Pontianak (7.6 points), Medan (6.9 points), and Banten (6.7 points). Consumer perception of current economic conditions remains strong, reflected by the CECI at 115.4. This is driven by all components, with the highest being the Current Income Index at 119.9. The Job Availability Index and Durable Goods Purchase Index also remain optimistic at 113.6 and 112.7, respectively.
Optimism about current income is robust across all spending groups, highest among those spending IDR 4.1-5 million. Respondents aged 31-40 show the highest optimism among age groups. Optimism about job availability is highest among respondents with postgraduate education and remains strong across all age groups. Expectations for the economy in the next six months remain strong, with the CEI at 135.0, supported by an income expectation index of 139.0. Expectations for job availability and business activities are also optimistic at 134.5 and 131.6, respectively. Cities with the largest CEI increases include Manado (15.2 points), Makassar (8.0 points), and Mataram (3.8 points), while declines are noted in Bandar Lampung (9.7 points), Banten (7.0 points), and Padang (6.8 points). In May 2024, the average propensity to consume ratio slightly decreased from 73.6% to 73.0%. The debt-to-income ratio increased from 9.7% to 10.3%, while the saving-to-income ratio remained stable at 16.6%. The consumption-to-income ratio decreased among respondents spending IDR 2.1-4 million per month, while the debt-to-income ratio increased across nearly all expenditure levels.
