Indonesia’s consumer confidence index improves as businesses reopen

The consumer confidence index in Indonesia improved in July along with the resumption of business activities and relaxation of restrictions applied to rein the COVID-19 spread.

A survey carried out by the central bank, Bank Indonesia, showed on Thursday that the consumer confidence index edged up 86.2 in July from 83.8 in the presiding month.

Although the figure remains in the pessimistic zone, it showed an improvement.

The strengthening of the consumer confidence was resulted from the improvement of the consumers’ perception on the current economic condition, indicated by the revenue hike, job availability and purchase of durable goods.

The improvement in the confidence occurred as the economic activities picked up following the relaxation of the partial lockdowns in several cities across the country.

The consumers’ perception on the condition of the economy in the next six months was relatively stable.

Indonesia has eased partial lockdowns along with the reopening of the economy under tight health protocols since June.

Mall shopping centers and tourist destinations have got back to operations gradually along with relaxation of restrictions in air travels.

The loan growth has heralded rebound in July after the car and motorbike sales spiked a month earlier.

Although the transmission of the novel coronavirus remains afloat as of late with daily confirmed cases over 1,500, the upbeat expectation over the readiness of vaccines for the virus for usage early next year has offset the concern on the transmission rate.

 

Source: China – ASEAN Business Council