Indonesia Consumer Confidence Index (CCI) fell to 84.4 in April amid the COVID-19 pandemic, the central bank reported today (05/06) - Photo: Special

JAKARTA (TheInsiderStories) – Indonesia Consumer Confidence Index (CCI) fell to 84.4 in April amid the COVID-19 pandemic, the central bank reported today (05/06). Its the lowest level since 2008 with consumers turning pessimistic for the first time since five years ago.

Last mont the CCI stood at 113.8. The survey showed, the low April index caused the respondent’ perception of falling income and poor job availability.

Various negative data has hampered the largest economy in Southeast Asia. Yesterday, the statistic bureau reported, Indonesia’ economy only grow 2.97 percent in the first quarter (1Q) of 2020 and has been impacted by the epidemic.

Earlier the government prediction will happens in the third quarter of 2020. The government spending become the major contributions to the growth. While the household consumption dropped sharply.

President Joko Widodo administration’ efforts to give a stimulus package worth of Rp405.1 trillion (US$27.01 billion) to the society, so far not give big impact to the the economy. The “very low” implementation to run the program become the reasoned.

According to governor of Bank Indonesia (BI), Perry warjiyo, the COVID-19 pandemic, which began in early 2020 in China and spread to various countries, has affected the economic growth in the 1Q of 2020. The influence of the virus to the economic growth is mainly on the “weak” of the domestic demand.

Household consumption is recorded at 2.84 percent compared to last year, far lower than the level in the 4Q of 2019 at 4.97 percent. The investment also slowed down by 1.7 percent caused of the slowing direct investment to the country.

The response of the government spending, which grew 3.74 percent from prior year, was able to withstand further slowing domestic demand. In addition, net exports contributed positively, grew 0.24 percent and imports contraction 2.19 percent in annual basis.

Going forward, he asserted, the central bank will continue to monitor the dynamics of COVID-19 outbreak and its impact on the Indonesian economy.

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Written by Staff Editor, Email: theinsiderstories@gmail.com