Bank Indonesia (BI) decided to relaxes the macro-prudential intermediation and loan to value (LTV) ratios to strengthening banking intermediary function -Photo: Special

JAKARTA (TheInsiderStories) – Indonesia’ consumer confidence index edged up to 128.2 in May 2019 from 128.1 in the previous month, reaching the highest reading since the series began in June 2000, said the central bank today (06/12).

Bank Indonesia (BI) noted the consumer optimism still remained good driven by an increase in the index of current economic conditions by 2.1 points to 133.5, while the economic expectations index in May fell by 1.9 points to 142.9.

The increase in consumer optimism was driven by perceptions of job availability by 3.3 points to 98.7 and purchases of durable goods by 1.6 points to 115.2 in May.

In addition, the consumer expectations for economic conditions going forward remain strong despite being lower than the previous month (142.9 compared to 144.8 in April). This is influenced by a decrease in expectations for income and business activities in the next 6 months.

“The survey results also indicate price pressures in the next 6 months (November 2019) are expected to increase,” the Bank wrote in the report.

Is said, this increase was mainly influenced by consumer demand for goods and services which is expected to increase towards the end of the year. In details, based on the data, the gauges measuring job availability compared to six months ago jumped 3.3 percent (98.7 vs 95.4 in April), and the index of current economic conditions rose by 2.1 percent (113.5 vs 111.4).

Also, the measure of current income advanced 1.4 percent (126.2 vs 124.8), with the index of whether it was a good time to buy durable goods going up 1.6 percent (115.6 vs 114.0).

Meantime, the gauge measuring income expectations for the next six months declined 2.4 percent (150.4 vs 152.8), the index of economic outlook fell 1.9 percent (142.9 vs 144.8), and the measure of job availability expectations dropped 1.5 percent (131.4 vs 132.9).

Consumer Confidence in Indonesia averaged 98.92 Index Points from 2000 until 2019, reaching an all-time high of 128.20 Index Points in May of 2019 and a record low of 9.60 Index Points in March of 2001.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com