Jakarta. Bank Indonesia announced Monday that people had become more confident in the country’s economy, thus maintaining the trend of growing consumer optimism.

The central bank revealed that Indonesia’s consumer confidence index (CCI) stood at 124.4 points as of August. This marks a 1-point increase versus the 123.4 of CCI posted the previous month. A reading of above 100 points means that Indonesian consumers are upbeat about the country’s economy, be it in its current state or its prospects in six months. Indonesia has been keeping the CCI above the 100 mark, but the scores had dropped to 125.2 in May, and eventually down to 123.3 points in June. The country managed to recover its CCI to 123.4 in July while also keeping up the momentum until the following month.

“Factors that support the improving CCI include the current economic condition index [CECI] that remained on the optimistic level. We have also noticed an increase in consumer expectation index, which we usually abbreviate as CEI,” Bank Indonesia’s spokesman  Edwin Haryono said.

Bank Indonesia also reported growing confidence in almost all Indonesian consumer groups which have been divided based on their monthly expenditures. The group of people who spend more than Rp 5 million (almost $324) a month are the most optimistic compared to others as their CCI soared from 123.2 in July to 133.2 in August. For reference, the average provincial minimum wage in the archipelagic Indonesia is set at around Rp 3.1 million. Employers in the metropolis of Jakarta are also expected to pay their staff at no less than Rp 5 million. Consumers whose monthly spending hits between Rp 3.1 million and Rp 4 million were the only group to report declining CCI. This group’s CCI dropped from 125.4 in July to 121.4 the next month.

The younger group of people also reported that they were losing confidence in the country’s economy compared to the more optimistic older population, the report showed. People aged between 31-40 saw a declining CCI which had fallen from 125.2 in July to 124 in August. Those in their 20s also grew less upbeat as the group’s CCI shrunk from 128.9 to 128.6 over the same period. The monthly CCI for Indonesians aged 51-60 jumped from 115.1 to 121.7 in the August reading.

CECI gives a portrait of Indonesia’s confidence in the current state of the economy compared to 6 months ago. The calculations factored in the consumer’s perception of their income, job availability, and purchases of durable goods. The overall CECI went up by half a point from 113.5 in July to 114 last month. In contrast, the CEI measures the consumer’s outlook for their income, business, and labor market conditions. August’s CEI witnessed a 1.6-point growth, reaching 134.9. 

“We are witnessing an increase in all CEI’s components, particularly the people’s expectations on how much they will make,” Edwin said.

Data showed people were more confident that they would earn more money in the future. The income expectations index had risen from 137.7 in July to 140 in August.

Last month, the average Indonesian consumer spent 73.5 percent of their income.