A survey released on Monday included a finding that may come as a surprise to the financial movers and shakers in Jakarta.
Credit Suisse issued its first Emerging Consumer Survey on spending profiles in seven emerging economies, including Indonesia.
Its findings showed people here were not only confident about their future, but that those outside of Java earn and save more than those on the island.
Teddy Oetomo, vice president of equity research at Credit Suisse Indonesia, said people living outside of Java earn Rp 2.84 million on average per month compared with Rp 2.46 million ($310 vs. $270) on the most populous island.
Savings are also higher outside of Java, with an average Rp 520,000 per month compared with Rp 240,000.
“This indicates that people outside Java spend less that those in Java, and it is because consumer goods penetration is still low outside Java,” Teddy said.
With infrastructure expected to develop, he added, the penetration level should increase outside of Java.
The Indonesian portion of the survey included 1,600 people in 10 cities across the country, two-thirds of which were urban areas and one-third rural.
Arief Wana, Credit Suisse’s head of research for Indonesia, said via teleconference from Hong Kong that the findings showed Indonesian confidence in the future was very high.
“Ninety-six percent Indonesians are confident that their income will increase within the next 12 months, and 26 percent of them expect a 10 percent increase in income,” Arief said.
The government is pushing to raise per-capita income from $3,000 now to $5,000 by 2014.
That confidence is also reflected in people’s decisions to utilize more financing services, with 40 percent of respondents saying they would borrow in the future. Only 33 percent of respondents said they had taken bank loans.
Arief said 56 percent of those polled said they were ready to make a major purchase, such as real estate or a car.
Property penetration stands at 70 percent, he said, with 40 percent saying they expect to upgrade their housing and 33 percent saying they were ready to buy their first home.
Credit Suisse also looked into companies it said could take advantage of the findings.
Automobile distributors such as Astra International are expected to expand their earnings per share by 12 percent this year.
Bank Mandiri could see earnings per share grow by 35 percent, while Bank Raykat Indonesia could rise 25 percent.
Consumer goods producer Unilever is expected to grow its earnings per share by 22 percent.
Cement maker Semen Gresik could see 15 percent growth.