The Performance of Consumer Goods Sector Shares is Still Corrected, This Is the Cause

Armfalcon.com, JAKARTA — The performance index of the primary and non-primary consumer goods sector is still undergoing corrections, respectively by 0.67 percent and 3.70 percent on a year to date (ytd) as of April 6 2023. This performance is in line with the JCI movement which also experienced a correction of 0.84 percent ytd.

“By sector, this is also reflected in the release of the financial performance of several issuers, most of which did not record a significant increase last year,” said Ajaib Sekuritas Financial Expert, Ratih Mustikoningsih, Saturday (8/4/2023).

Indonesia’s economic growth is still solid throughout 2022 of 5.31 percent. The household consumption sector with a weight of 51.65 percent of GDP, based on expenditure, experienced an increase of 4.48 percent year on year (yoy).

Even though there appears to be an acceleration in domestic consumption, according to Ratih, several issuers in the consumer sector are hindered by the economic turmoil that will occur throughout 2022. This includes inflation from the producer and consumer side as well as rising interest rates. In addition, the decline in the rupiah exchange rate hampered financial performance, such as top line And bottom line.

Ratih explained that the increase in inflation had a negative impact on the non-primary consumer goods sector, especially those with a lower middle market share. Meanwhile, the depreciation of the rupiah exchange rate and the surge in food commodities in 2022 made COGS and total expense increased.

“Thus, this suppresses performance bottom line issuers in the primary consumer goods sector,” said Ratih.