Indonesia Consumer Confidence Index Increased in May 2016

Jakarta, InfoPublik - Consumer confidence in Indonesia in May 2016 increased to 112.1 or increased by 3.1 point from the previous month, Bank Indonesia Consumer Survey recorded. 

Bank Indonesia’s Department of Communications Executive Director Tirta Segara in a written statement received in Jakarta, Saturday (6/11) stated that the increase in Consumer Confidence Index (CCI) was driven by an increase in the Consumer Expectation Index and the Current Economic Conditions Index, which rose respectively by 4.5 and 1.8 points.

According to him, the survey also showed that consumers predicted that price hike will slow down in August 2016. This is indicated on the Price Expectation Index (IEH) of the next 3 months which decreased by 2.7 points to 171.3.

"Price rises slowdown is expected to occur mainly in processed foods, beverages, cigarettes and tobacco along with the estimation that consumer’s demand will return to normal after Idul Fitri," he said.

As for the next 6 months (November 2016), he added, consumers expected an increase in saving’s amount which will be higher than in previous months. Meanwhile, the loans of the next 6 months are also expected to increase compared to the previous month. (Translator: Siti Chodijah)