Bank Indonesia : Consumers increasingly upbeat on economic prospects
Domestic consumers are optimistic about their economic prospects and personal finances this year, a recent survey from Bank Indonesia has found.
On Wednesday (03/02) the central bank released its monthly survey, based on 4,600 households in 18 cities across the country, which found the nation's consumer confidence index rose 5.1 points to 112.6 in January.
Readings above 100 points indicate consumers are generally optimistic. The index has stayed above 100 since November last year.
"Price pressures will subdue in April 2016," the central bank said, adding the Price Expectation Index which measures consumers' expectations for the next three months has declined 2.5 points to 158.1.
“Price pressures mostly came from housing, electricity, gas and fuel,” the survey says.
In the next six months consumers estimate their savings will be higher than the previous month.
Economy Condition Index (IKE) and Consumer Expectation Index (IEK) rose in January on the back of the respondents' optimism on current job availability.
IKE, which measures consumers’ perception of the current economic condition, rose 5.9 points to 99.9 while the IEK — a measure of consumers’ expectation over future economic prospects — rose 4.4 points to 125.4 from the previous month.
Danareksa Research Institute, part of state-controlled brokerage Danareksa, reported a similar survey a day earlier.
Danareksa’s January Consumer Confidence Index saw an increase of 7.1 points to 91.4, or the highest level in the last 14 months, amid decreasing consumer anxiety of price hikes and scarcity.
The survey questioned 1,700 household respondents in six separate areas.
“With a higher optimism on overall economic prospects in the next six months, consumer plans to buy durable goods also increased in January,” the Danareksa report said.
Just over 32 percent of respondents plan to buy durable goods, compared to 31.6 percent in December 2015 and 31.7 percent last January.
Consumer trust in the government, however, dropped 1.1 percent to 92.8 percent in January, indicating a lack of trust in the government's ability to maintain security.