IDEAS home Printed from
   My bibliography  Save this paper

Constructing the Index of Indonesian Monthly Private Consumption Expenditure


  • Achmad Kemal Hidayat

    () (Department of Economics, Padjadjaran University)

  • Arief Bustaman

    () (Department of Economics, Padjadjaran University)

  • Anhar Fauzan

    () (Department of Economics, Padjadjaran University)

  • Eva Nurwita

    () (Department of Economics, Padjadjaran University)

  • Adhitya Wardhana

    () (Department of Economics, Padjadjaran University)

  • Arief Anshory Yusuf

    () (Department of Economics, Padjadjaran University)


Private consumption expenditure (PCE) contributes a major share in Indonesian GDP and its growth has been dominating the economic growth. PCE is also linked directly to the welfare of Indonesian people making it even more relevant for its close monitoring. However, despite the high volatility of macroeconomic conditions due to both global and domestic disturbances, indicators that measure PCE in frequency higher than quarterly is not yet existent in Indonesia. This paper is the first attempt to construct a monthly index of private consumption expenditure for Indonesia. Using a methodology based on the experience of other countries and constrained with data availability, we devise the index based on four statistically relevant variables: value added tax revenue, excise tax revenue, electricity consumption, and fuel consumption. Using the weights estimated based on the principal component analysis we found that our monthly PCE index fits well and correlate highly with the quarterly private consumption expenditure from the national accounts data. We hope that our initial attempt to construct the monthly PCE index will encourage others to devise even better measure of monthly consumption indicators.

Suggested Citation

  • Achmad Kemal Hidayat & Arief Bustaman & Anhar Fauzan & Eva Nurwita & Adhitya Wardhana & Arief Anshory Yusuf, 2011. "Constructing the Index of Indonesian Monthly Private Consumption Expenditure," Working Papers in Economics and Development Studies (WoPEDS) 201103, Department of Economics, Padjadjaran University, revised Jun 2011.
  • Handle: RePEc:unp:wpaper:201103

    Download full text from publisher

    File URL:
    File Function: First version, 2011
    Download Restriction: no

    More about this item


    Private consumption expenditure; Macroeconomic Policies; Indonesia;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unp:wpaper:201103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arief Anshory Yusuf). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.