Consumers’ Views of Economy Key to Gauging Spending Trends

KOMPAS/TOTOK WIJAYANTO

Bread-making activities in a household-scale bread industry in the Bendungan Hilir area, Central Jakarta, on Friday (7/8/2020). The breads are marketed in offices, schools and market environments at a price of Rp. 4,000 per seed. The Covid-19 pandemic has also hit these home businesses.

The ongoing Covid-19 pandemic has spread fear among the productive-age population regarding their economic prospects. Their strongly rational considerations in consumption while prioritizing health will be key for the government in adjusting economic policies going forward.

The first casualty of the Covid-19 pandemic is the real economic sector. Industrial and trading activities have plummeted both at the national and global level. According to a Trade Ministry publication issued on 5 May 2020, 60 percent of the processing industry has been hit by the pandemic, 40 percent of which is mid-scale industries with huge demand.