Bank Indonesia’s Consumer Survey for January 2025 indicates that consumer confidence in economic conditions remains strong. This is reflected in the Consumer Confidence Index (CCI), which stood at an optimistic level of 127.2.

The continued strength in consumer confidence is supported by the Consumer Expectation Index (CEI) and the Current Economic Condition Index (CECI). The CEI recorded 140.8, an increase from 139.5 in the previous month. Meanwhile, the CECI remained at an optimistic level of 113.5, though slightly lower than December’s 116.0.

By spending category, consumer confidence remained high across all groups. The highest CCI was recorded among respondents with monthly spending between IDR 4.1 million and IDR 5 million (131.8), followed by those spending above IDR 5 million (131.0) and IDR 2.1 million to IDR 3 million (126.6).

In terms of age groups, optimism persisted across all categories. The highest CCI was observed among respondents aged 20-30 years (133.5), followed by those aged 31-40 years (126.9) and 51-60 years (125.6). Regionally, consumer confidence increased in several surveyed cities, with the highest growth recorded in Banjarmasin (17.0 points), followed by Medan (8.5 points) and Mataram (8.0 points).

Consumer perceptions of current economic conditions remained strong, as reflected in the CECI, which was recorded at 113.5 in January 2025, despite a slight decline from 116.0 in December 2024. Among its components, the current income index, job availability index, and durable goods purchasing index were recorded at 122.6, 107.7, and 110.3, respectively.

Regionally, some cities saw an increase in the CECI, with the largest gains in Banjarmasin (15.3 points), followed by Padang (6.7 points) and Banten (6.7 points). Respondents’ optimism about current income remained strong across all spending and age groups, with the highest index recorded among those spending above IDR 5 million (130.5) and the 20-30 age group (131.9).

Meanwhile, consumer expectations for economic conditions in the next six months showed an upward trend. The CEI in January 2025 reached 140.8, up from 139.5 in the previous month. This increase was driven by expectations of future income and business activities, which rose from 143.3 and 137.4 in December 2024 to 144.8 and 140.7 in January 2025, respectively. The expectation for job availability remained optimistic at 137.0, slightly lower than 137.6 in December.

In terms of financial conditions, the proportion of income allocated for consumption and savings in January 2025 stood at 73.6% and 15.3%, respectively, slightly lower than the previous month’s 74.1% and 15.5%. Meanwhile, the proportion of income used for loan repayments increased slightly to 11.1% from 10.5% in December 2024.

Bank Indonesia’s Consumer Survey has been conducted monthly since October 1999, involving approximately 4,600 households across 18 cities in Indonesia. The index calculations use the balance score method, where a value above 100 indicates optimism, while below 100 reflects pessimism.

PHOTO: PARAMOUNT LAND

This article was created with AI assistance.