BANDUNG - Consumer Survey conducted by the Representative Office of Bank Indonesia West Java Province indicates that in general consumer optimism on the economy is still strong but with a slightly downward trend in the reporting period.
This is reflected in the May 2018 Consumer Confidence Index (IKK) at the optimistic level (123), slightly down from the previous month's condition (127). The decline in CCI was due to the decline in the Economic Condition Index (IKE) and Consumer Expectation Index (IEK).
IKE was observed to decline from 110 in the previous month to 107 in the reporting period. Meanwhile, the IEK was observed to decline from 144 in the previous month to 139 in the reporting period.
Nevertheless, the level of consumer consumption observed remains strongly maintained in the reporting period. This is reflected in the portion of consumption to income which increased 3% to 69%.
Meanwhile, the portion of loan repayments to revenues increased by 1% to 15%. Savings portion of revenues decreased 5% to 16% in the reporting period.
Meanwhile, price pressures in West Java in the next three months (August 2018) are predicted to decrease compared to price pressures in July 2018. This is reflected in the Price Expectation Index (IEH) for the next three months which decreased by four points from the index level of 187 to 183. In more depth, respondents rated that the price pressure drop was driven by falling price pressures on food commodity groups, non-food groups, energy groups and housing groups.
Meanwhile, the use of banking products in the next six months (November 2018) is expected to decrease the amount of savings accompanied by an estimated decline in the number of loans.
"This is indicated by the index of estimated savings for the next 6 months, which decreased by one point from 132 to 131. On the other hand, the index forecasts loan position decreased by one point from 149 to 148," said Head of West Java BI Group Ismed Isnono , Monday (4/6/2018). (jo)