Volume 1: Consumer Price Indices

Indonesia

Official title

Combined Consumer Price Index of 27 capital cities of provinces.

Scope

The index is computed monthly and covers private households in the urban areas of 27 capital cities of provinces.

Official base

April 1988-March 1989 = 100.

Source of weights

The weights and selected items were derived from a cost-of-living survey conducted from July 1988 to June 1989 in 27 capital cities of provinces, covering a sample of 35,000 private households. Excluded from the survey were single-person households, those with more than 10 members, institutional households and illiterate households.

Weights and composition

Not available.

Household consumption expenditure

The consumption approach was used for food, beverages, tobacco and services and the delivery approach for calculating expenditure for all semi-durable and durable goods.

Imputed rent for owner-occupied and rent-free houses was calculated by applying the rent tariff applicable at that time. The amount imputed was taken as income to the household as well as expenditure. If the household occupied an official (company) house with rent less than the market value of rent, the amount of rent difference was taken as imputed income and the market value of the rent as expenditures. In addition, goods received free of charge and the goods purchased at low prices were valued at market price and classified as expenditure for these goods. The difference between the market values and low prices were included as household income.

The credit purchase of goods and services consumed during the reference period was classified as consumption expenditure on the goods and services concerned, and also as imputed income. Advance payments and instalments paid during the reference period were classified as non-consumption expenditure.

Non-consumption expenditure and other payments cover: income tax, vehicle taxes/ownership transfer costs, taxes on land and buildings, property tax, and radio and television contributions; savings, insurance premium payments, debts payment, interest payments, advance payments for goods purchase, loans to other parties, purchases of immovable goods (land, houses) including major repairs, the cost of parties, cost of religious or traditional events, money lost, etc.

Method of data collection

Prices are collected by central and local statistical agents from selected retail shops and establishments. Prices are collected each week, month or quarter.

The pricing day is Tuesday for weekly collection, the 15th of the month for monthly collection and the 10th to the 20th for quarterly collection. Data for electricity, gas, water and communications are obtained from the official tariffs.

The prices used to calculate the index are the retail prices actually paid by consumers.

Housing

Rent quotations are obtained in March and September each year from 16 types of dwellings, according to the condition of the building and its facilities. Owner-occupied housing was included in the calculation of the weights, but in the index the price changes are calculated from changes in the cost of housing materials and of wages of housing builders.

Specification of varieties

Detailed specifications are provided for each item included in the index, describing the variety, quality and brand.

Substitution, quality change, etc.

If there is a quality change for an item, the new quality is introduced only when prices are available for both the current and previous periods.

Seasonal items

There is no change of season, so all items are available the whole year round.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, using weights corresponding to the base period. The price relative for each item is computed by dividing the average price for the current period by the average price for the previous period. Average prices are simple arithmetic averages.

The combined indices are obtained by computing weighted price indices for each sub-group, major group and all items.

The index is an aggregation of the series for the different province capitals. The national index is calculated from the city series, using the number of households in the urban areas of each city as weights.

Other information

Separate indices are also computed and published for the 27 provincial capital cities.

Organisation and publication

Central Bureau of Statistics: Monthly Statistical Bulletin (Jakarta).