Average Household Spending Increased During the Pandemic

The Central Statistics Agency (BPS) explains that people have become more cautious in their spending and tend to reduce their expenditure. This is reflected in the average monthly per capita expenditure of Indonesian residents, which decreased by 4.27% from Rp 1.26 million per capita per month in March 2020 to Rp 1.2 million per capita per month in September 2020. However, expenditure among the top 20% of the population increased during the pandemic, although by a small percentage (0.12%), reaching Rp 2.78 million per capita per month.

This increase in expenditure among the top 20% of the population stemmed from the food expenditure group, which increased by 7.38% to Rp 1.15 million per capita per month, while the non-food group decreased by 4.45% to Rp 1.6 million per capita per month. In contrast, expenditure among other population groups decreased. The average expenditure of the bottom 40% of the population decreased by 2.05% to Rp 539,500. This decrease originated from food expenditure, which fell by 8.81% to Rp 314,500 per capita per month. Meanwhile, non-food expenditure increased by 9.27% to Rp 225,000 per capita per month.

The middle 40% of the population had an expenditure of Rp 1.078 million, down 4.58% from March 2020. This decrease occurred across all groups: 6.97% for the food group, reaching Rp 581,300, and 1.62% for the non-food group, reaching Rp 497,400.

Based on this data, only the top 20% of the population had a good food security expenditure share. This is because a smaller share of food expenditure reflects an improving level of welfare. This population group could also consume higher-quality food, as recommended since the pandemic entered Indonesia, to consume foods that boost the immune system. The affordability of quality food by the top 20% of the population during the pandemic increased their food expenditure.

BPS stated in its report that the sample from the National Socioeconomic Survey (Susenas) in September 2020 was taken from the March 2020 Susenas. Therefore, it is possible to compare changes in population expenditure from March to September 2020, considering that this period represents one year of the Covid-19 pandemic.