Determinants of Household Consumption Allocation during the Covid 19 Outbreak in Riau, Indonesia

Abstract

An pandemic will disrupt consumer income and expenditure and other effects in all expenditure categories. The purpose of the study this to analyze changes in household income and consumption changes during the Covid19 outbreak; analyzing the differences in household consumption in the formal and informal sectors and analyze the determinants of household consumption. This research was conducted in the urban area of Pekanbaru City, Riau Province, Indonesia. The type of data taken includes secondary data regarding the distribution of positive patients with Covid19. Primary data were taken from sample households in urban areas. Collecting data using an interview guide (questionnaire) which contains the identity of the respondent, economic activity, shopping or consumption during the outbreak and outside the epidemic, buying fast food, shopping related to health and the like. The sample was taken from 75 household respondents, including 35 formal sector household respondents and 40 informal worker household respondents in Pekanbaru City. One-way analysis of variance and t test to test differences in income and consumption between time and between groups of respondents. To analyze the determinants of household consumption using ordinary least squares. Result; The study found that after the outbreak through September 2020, the income group of less than 3 million increased in number. During this period, the respondents' average monthly consumption increased, but not significantly. There is a significant difference in monthly income between the period March - September 2019 and the period March - September 2020. The average monthly income of respondents from the informal workers group decreased compared to the previous year. On the consumption side, there was no change between the three periods. The individual variable test shows that only income is the significant independent variable. In the period March to September 2019, the respondent's MPC was 0.499, increasing in the Covid19 outbreak period to 0.525.