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    BI Survey: Consumers Are Still Optimistic

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    BANDUNG - Consumer Survey conducted by the Bank Indonesia Representative Office of West Java Province indicates that in general consumer optimism towards the economy is still strong with an upward trend in the reporting period. This was reflected in the September 2018 Consumer Confidence Index (IKK) which was at an optimistic level and increased compared to the previous month.

    The increase in the IKK was driven by an increase in the Economic Condition Index (IKE) and the Consumer Expectation Index (IEK). IKE is observed to increase compared to the previous month. Meanwhile, IEK was observed to increase compared to the previous month.

    Deputy Head of Bank Indonesia (BI) West Java Representative Ismet Inono said the level of consumer consumption was monitored to remain strong with an upward trend in the reporting period. This is reflected in a stable portion of consumption to income of 69%.

    Meanwhile, the portion of loan repayments on income decreased slightly by 1% to 15%. The portion of savings to income increased slightly by 1% to 16% in the reporting period.

    Meanwhile, price pressures in the West Java region in the next three months (December 2018) are expected to increase compared to price pressures in November 2018. This is reflected in the Price Expectation Index (IEH) for the next three months which rose to an index level of 180.

    More deeply, respondents considered that the increase in price pressure was caused by rising price pressures on food commodity groups. Meanwhile, the use of banking products in the next six months (March 2019) is estimated to increase the amount of savings accompanied by an estimated decline in loan amounts.

    This is indicated by the estimated index of total savings in the next 6 months which rose seven points to be at 143 levels. On the other hand, the forecast position of the loan position recorded a decline of 10 points to be at level 142. jo

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