Consumer Optimism Strengthens in April 2023, Highest Since the Beginning of the Year

Indonesian consumer optimism strengthened in April 2023, reaching its highest level since the beginning of the year.

This is evident from the Bank Indonesia (BI) survey, which shows that the Consumer Confidence Index (CCI) reached 126.1 in April 2023, higher than the January-March 2023 CCI, which remained in the range of 123.

An index above 100 indicates optimistic consumer sentiment, while an index below 100 indicates pessimistic sentiment.

"Consumer confidence was observed to increase across all spending categories, particularly among respondents with monthly expenditures of Rp1 million to Rp2 million," BI stated in its April 2023 Consumer Survey report.

"Consumer confidence was also observed to be optimistic across all respondent age categories, although a significant decrease occurred in the group aged over 60 years," it continued.

The increase in the CCI was driven by the strengthening of the Current Economic Conditions Index (CECI) and the Consumer Expectations Index (CEI).

The CECI, an index reflecting consumer perceptions of the actual economy, stood at an optimistic 116.6 in April 2023, increasing by three points compared to the previous month.

Generally, the CECI increased because the majority of respondents felt increasingly optimistic about job availability and current income conditions, and were confident in making durable goods purchases.

The CEI, which reflects consumer expectations of economic conditions in the next six months, reached 135.5 in April 2023, also rising by three points compared to March 2023.

The CEI increased because the majority of respondents felt that job availability and their income would improve in the next six months. However, respondent expectations regarding business activity development in the next six months indicated a decline.

BI conducted this survey involving approximately 4,600 respondents using a stratified random sampling method.

Respondents were spread across 18 cities, namely Jakarta, Bandung, Bodebek, Semarang, Surabaya, Medan, Makassar, Bandar Lampung, Palembang, Banjarmasin, Padang, Pontianak, Samarinda, Manado, Denpasar, Mataram, Pangkal Pinang, Ambon, and Banten.