Retail sales in Southeast Asia’s largest economy fell 12.3 percent from a year earlier, a smaller drop than the previous month's 17.1 percent contraction, a central bank survey found on Wednesday. The BI survey predicted retail sales in August to fall 10.1 percent from the same month last year.

Indonesian consumers remained pessimistic in July and August as the coronavirus-induced layoffs earlier this year eroded people’s confidence in the economy, according to a consumer confidence index (IKK) survey by BI.

“Consumer confidence improved slightly in August amid rising confidence about income, job availability and purchase of durable goods,” the central bank said in the survey. “Consumer perspective on income and job availability continued to improve compared to the previous six months, in line with rising economic activity after large-scale social restrictions [PSBB].”

The index improved to 86.9 in August from 86.2 in July. An IKK value above 100 reflects general hopefulness, while a value below 100 signifies pessimism.

As Indonesian consumer perspectives rose in July and August compared to the slump in the second quarter, there were improvements in purchases of food, beverages and tobacco in July, according to the survey of around 700 retailers across 10 major cities.

Indonesia’s economy shrank 5.32 percent in the second quarter as all components of economic activity fell for the first time since the 1998 Asian financial crisis amid PSBB implemented by regional administrations to curb the virus spread, forcing people to stay at home.

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