BI: Public Optimistic About East Java's Strong Economy

Surabaya, East Java (ANTARA) - Bank Indonesia stated that the public remains optimistic about the strength of East Java’s (Jatim) economy amidst various global economic upheavals and dynamics. “This is reflected in Bank Indonesia’s Consumer Survey in East Java Province for May 2026, which indicates that public confidence in Jatim’s economic conditions remains strong,” said Ibrahim, Head of the Bank Indonesia Representative Office for East Java, in Surabaya on Wednesday. Based on the survey, the Consumer Confidence Index (IKK) stood at 122.6 (index >100), in line with the national IKK which also remained in the optimistic zone at 120.9. The strong consumer confidence was supported by perceptions of current economic conditions and expectations for economic conditions over the next six months. The Current Economic Condition Index (IKE) in May 2026 was underpinned by optimism across all its constituent components, namely the Current Income Index, the Job Availability Index, and the Durable Goods Purchases Index. These various components indicate a good level of income, continued availability of job opportunities, and sustained durable goods consumption activity. Meanwhile, the maintained level of the Consumer Expectations Index (IEK) was supported by the strength of its three constituent components: the Business Activity Expectations Index, the Income Expectations Index, and the Job Availability Expectations Index, all of which remained solid. Nevertheless, Ibrahim cautioned that global economic dynamics, particularly the escalation of conflict in the Middle East, still need to be monitored as they could potentially affect consumer optimism. Spatially, all monitored cities and regencies in East Java—namely Surabaya, Malang, Kediri, and Jember—recorded equally strong consumer confidence, in line with the IKE and IEK levels. In terms of household finances, the financial management of East Java’s residents for consumption in May 2026 still accounted for the largest share at 70.1 percent. Meanwhile, the proportion allocated to loan instalment payments and savings stood at 11.7 percent and 18.1 percent, respectively.