Consumer confidence drops<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Indonesian consumer confidence fell in July compared to the month
\nbefore, primarily due to utility price hikes, the latest survey
\nby the Danareksa Research Institute revealed on Thursday.<\/p>\n
The consumer confidence index (CCI) slipped to 91.7 percent in
\nthe month, a drop from 95.3 percent posted in June, the survey
\nsaid.<\/p>\n
"The (utility price) hikes, that appear poised to drive other
\nprices up will, in the end, translate into thinner pockets,"
\nDanareksa said.<\/p>\n
The government has a policy to increase electricity prices
\nevery quarter by an average of 6 percent. It recently also raised
\nthe price of liquid petroleum gas (LPG).<\/p>\n
"That hurts sentiment of people across the nation, both in
\nrural and urban areas," Danareksa said, adding that pessimists in
\nrural areas were more apparent as they had to struggle harder to
\ncope with the impacts of the ongoing drought in some parts of the
\ncountry.<\/p>\n
However, the survey said, although confidence fell in July,
\nconfidence in the overall economy was mostly unchanged as most
\nwere apparently heartened by continuing stability in the
\ncountry's macroeconomic indicators.<\/p>\n
While the rupiah remains relatively stable and Bank Indonesia
\nkeeps inching its benchmark interest rate downward, of even
\ngreater significance for consumers was the lower inflation rate.
\nDuring the first seven months of the year, inflation stood at a
\nhistoric low of 1.29 percent.<\/p>\n
The favorable conditions should help increase consumers'
\nappetite for durable goods in the coming months.<\/p>\n
All of these indicators increased the confidence of consumers
\nin the government to steer the economy, which should bode well
\nfor hopes of continued robust consumption, which has been the
\nmain driver of the country's economic growth during the past
\ncouple of years.<\/p>\n
The Danareksa report added that the fall in sentiment was more
\npsychological, with relatively no major impact on the economy.<\/p>\n
"The fall is just a reflection of consumers' displeasure in
\nregard to higher monthly bills for electricity and LPG in
\naddition to a larger-than-usual cost for educational purposes at
\nthe beginning of the new academic year," it said.<\/p>\n
The Danareksa survey was conducted in cooperation with AC
\nNielsen, which interviewed 1,700 households in six key areas of
\nthe country.<\/p>\n
Based on face-to-face interviewing, the national survey uses
\nsampling which is scientifically selected to accurately represent
\nIndonesian consumer characteristics -- demographically and
\neconomically.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/consumer-confidence-drops-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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