Consumer Confidence Index in Indonesia
Consumer Confidence Index has been tabulated since 1999 as part of the Consumer Survey by Bank Indonesia. Household consumption in Indonesia contributes to 60.95% of gross domestic product (2008). Consumer Survey is a key policy making tool for Bank Indonesia.
This survey represents the consumer confidence about the overall economic condition, general price level, household income, and consumption plans three and six months ahead.
The Consumer Confidence Index (CCI), is an average of the Current Economic Condition Index (CECI) and Consumer Expectation Index (CEI).
The CECI is made up of the average of current condition of several factors compared to six months ago
- Household income
- Right time to buy durable goods
- Unemployment
The CEI is made up from the average of future prospects of several factors
- Household income
- Overall economic condition
- Unemployment rate.
Initially the respondents were asked to give projection of 12 months but the results have been inaccurate due to the lack of forward planning by most households in Indonesia. Since January 2007 questions about consumer expectation for twelve months ahead is replaced with expectation over three-six months ahead. Furthermore, the coverage has increased from 9 to 18 cities. By 2010 survey is planned to be conducted on-line and immediately reported.
In September 2011, Indonesia sets world record in the KADIN-Roy Morgan Consumer Confidence Index at 146.8, an all time high. Indonesian Central Bank Index also hits its higher level ever in the same month.
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