Purchasing Power Needs Greater Support

Throughout the Covid-19 pandemic prevalence in Indonesia, the CCI has been more in the pessimistic area. Only during April-June did the CCI rise above 100 and reflect consumers’ strengthening confidence.

KOMPAS/RONY ARIYANTO NUGROHO

A number of vehicles headed for the Puncak area at the exit of the Jagorawi Toll Road, Gadog, Bogor Regency, West Java, during the Islamic New Year national holiday, on Wednesday (11/8/2021). The enthusiasm of residents of Jakarta and surrounding areas to travel on holidays remains high even though the government has imposed restrictions on community activities to reduce Covid-19 cases.

Consumer optimism in July 2021 is ebbing away in response to the implementation of public activity restrictions (PPKM) level 4. Purchasing power should be supported.

JAKARTA, KOMPAS — The coverage of social protection programs and allocations needs to be expanded in order to maintain the prospect of economic recovery that remains dependent on the purchasing power of society. If consumer pessimism is allowed to linger, the extension of PPKM will continue to press down household spending this year.