Mandiri: Indonesia's Consumer Spending Recovers to Pre-Pandemic Levels

Consumer spending in Indonesia has recovered to pre-pandemic levels, according to data from the Mandiri Institute.

Based on data from the Mandiri Institute's "brief on latest consumer spending", consumer spending in January this year, has returned to the normal pattern of spending in the pre-pandemic period.

The Mandiri spending index showed that the frequency of consumer spending index reached 157,9 in January, while the value of consumer spending index reached 131,7. Spending increases were also evenly distributed across all regions in Indonesia, as spending on travel and tourism, electronics, fashion, restaurants and supermarkets had all increased significantly.

The latest consumer survey conducted by Bank Indonesia in January 2023, indicates increasing consumer confidence in economic conditions, compared to one month earlier. The consumer confidence index rose to 123 in January up 3,1 points compared to December, when consumer confidence was at 119.9. Meanwhile, overall in 2022, household spending in Indonesia rose sharply, growing by 5,39 percent.

Consumer spending, once again, contributed the most to GDP making up 50,38 percent of Indonesia's GDP in 2022. Indonesia's economy grew by 5,72 percent in 2022, the highest growth since 2013.