Indonesia Consumer Trust on the Rise Again: Danareksa
Indonesian consumers are growing more optimistic on the back of perception that the national economy is improving, a survey showed on Wednesday.
Purbaya Yudi Sadewa, chief economist of state-controlled brokerage Danareksa Research Institute, said the Indonesian consumer trust index strengthened by 1.2 percent to 92.4 in June compared to 91.3 in May.
The index rose to
91.3 points in May from 83.4 points in April. The rise followed falls
the preceding two months.
“Besides that, the public also gave a better assessment of their employment in the next six months,” Purbaya said in written statement.
Two main components of the index also showed increases. The present situation index rose 1.0 percent to 77.0 because of better assessment of economic conditions, and the expectation index rose by 1.4 percent to 104.0 because of public optimism on the prospects of the economy in the coming six months.
“With the increase in public optimism on economic prospects in the next six months, consumer plans to buy durable goods also rose in June,” he added.
Purbaya said the latest survey results showed that 36.3 percent of consumers surveyed were planning to buy durable goods within the next six months, compared to 35.3 percent in May and 34 percent in April. This, he said, was the highest level of confidence since December.
“In the June survey, consumers as a whole felt convinced that inflationary pressures will only increase slightly in the next six months. The index that measures consumer sentiment about inflation rose 0.06 percent to 191.2 in June,” he said.
The rising expectation of higher prices was not surprising considering that the prices of several goods, especially food, usually rise with the arrival of Ramadan and the Idul Fitri festival that falls in July and August this year.
Purbaya also said that public confidence in the ability of the government to carry out its tasks strengthened in June. The index of consumer confidence in the government rose 0.07 percent to 78.82 in June.
“In our last survey, two components that composed the index of consumer confidence in the government rose, while three others decreased,” he said.
Confidence in the ability of the government to provide and maintain public facilities showed the strongest increase, rising by 2.95 percent to 97.55 in June.