Indonesian Consumers Upbeat About 2016: Bank Indonesia Survey
Indonesia's consumer confidence remained strong in December due to a more optimistic outlook on the economy in 2016, according to a survey from the central bank.
According to Bank Indonesia's monthly survey, which is based on 4,600 households in 18 cities across the country, the nation's consumer confidence index stood at 107.5 in December, up 3.8 points from the previous month. A reading above 100 points indicates that consumers are generally optimistic.
"The boost came from a more upbeat outlook on Indonesia's economic conditions over the next six months, as indicated by the increase in the consumer expectation index – which measures respondents' optimism for the future – from 114.8 to 121.0 and a hike in the economic condition index from 92.6 to 94.0," Bank Indonesia wrote in the report, which was released on Wednesday.
It estimated economic growth to rebound this year at 5.2 percent-5.6 percent from a 4.7 percent-4.8 percent growth forecast for 2015.
Despite the increase, the consumer confidence index was still lower than the reading in the same period a year ago, when it reached 116.5.
According to the report, households with an income of Rp 3 million to Rp 4 billion ($215.3-$287,047) per month are the most optimistic among other respondents.
Indonesia's consumers expect an increase in staple food prices in March and June, along with the increase in housing, electricity, gas and fuel prices.
The survey also showed that consumers did not hold back on consumption in December as they splurged 69 percent of their income for the holidays, up 0.6 percent from the previous month.
The respondents also budgeted less of their income for savings than in November, setting aside 18.1 percent of their salaries, 0.4 percent less than the previous month.