In December 2024, consumer confidence in Indonesia experienced a noteworthy increase, driven by a more positive outlook on current economic conditions and future expectations, as highlighted by Bank Indonesia. The overall Consumer Confidence Index rose to 127.7, a significant jump from 125.9 in November, indicating a thriving sense of optimism among the nation's consumers. A Consumer Confidence Index value exceeding 100 signifies optimism, while values below indicate a more pessimistic sentiment.
The enhanced confidence reflects broad-based gains among various economic components, suggesting that consumers are feeling more secure in their financial situations and future prospects. Particularly encouraging was the rise in the Current Economic Condition Index, which increased to 116.0 in December, reflecting an uptick from 113.5 the previous month.
Similarly, the Consumer Expectation Index also saw an upward trend, climbing to 139.5 from 138.3. This comprehensive improvement demonstrates a collective sense of positivity among consumers regarding their current and anticipated economic circumstances. Furthermore, specific areas of consumer sentiment also indicated growth.
The Current Income Index rose to 123.9 from 121.9 in November, suggesting that individuals feel more confident about their financial wellbeing. Additionally, the Job Availability Index experienced a notable ascension, rising to 112.1 from 110.1, along with the Durable Goods Purchase Index, which climbed to 111.8 from 108.4. The robust increase in expectations reflects a more favorable outlook on personal income and job prospects among consumers.
The Expectations for Income Index rose to 143.3 in December from 141.7, while the Job Availability Index climbed to 137.6 from 136.8. Meanwhile, the Expectations for Business Activities Index also experienced growth, rising from 136.2 in November to 137.4 in December. Bank Indonesia conducts a monthly survey involving just over 4,600 households across the Indonesian archipelago to accurately gauge consumer sentiment and economic conditions.
The data collected provides crucial insights into the economic health and consumer behavior trends within the country, allowing policymakers and businesses to make informed decisions. The findings for December 2024 illustrate a resilient consumer base, poised for continued economic engagement and growth as confidence levels rise..