According to a Bank Indonesia (BI) survey, consumers began reducing consumption and loan installments, and increasing their allocation of funds to savings in June 2022.
BI recorded that the average proportion of consumer income used for consumption in June 2022 was 74.2%, a slight decrease compared to 74.3% in May 2022.
The consumption ratio decreased in the majority of spending groups, except for respondents with expenditures of Rp3.1-Rp4 million and more than Rp5 million per month, whose consumption ratios increased.
The debt-to-income ratio in June 2022 also fell slightly to 9.6%, compared to 9.7% the previous month.
The proportion of income allocated to installments also decreased in most spending groups, especially for respondents with expenditures above Rp5 million, whose ratio fell by 2.5% month-on-month.
On the other hand, the proportion of consumer income saved (saving-to-income ratio) in June 2022 increased to 16.2%, slightly higher than 16% in the previous month.
The proportion of savings to income increased across all spending groups, particularly for respondents with expenditures of Rp4.1 million to Rp5 million per month.
(Also read: Consumers with the Lowest Expenditures Become More Optimistic in June 2022)