Consumer confidence falls<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Consumer confidence in Indonesia, the main engine that fueled
\neconomic growth by an impressive 2.38 percent in the third
\nquarter, fell dramatically last month, which could spell trouble
\nfor Indonesia if this translates into consumer spending.<\/p>\n
A monthly survey by Danareksa Research Institute found that
\nall indices related to consumer spending plunged in October,
\nbringing an end to two months of upward trends dating back to the
\ninauguration of Megawati Soekarnoputri as Indonesia's fifth
\npresident.<\/p>\n
\"The weakening rupiah, which broke through the 10,000 level
\nagainst the dollar, shook consumer confidence,\" the agency said
\nin its latest report, to be published on Monday.<\/p>\n
Hope for an economic recovery, encouraged by the change in
\nnational leadership in July, appeared to have lost its momentum
\nin the absence of any fundamental change in the economy, it said,
\nadding that the honeymoon period of Megawati's government had now
\nended.<\/p>\n
The government's failure to promptly deal with domestic
\npolitical and economic consequences of the Sept. 11 terrorist
\nattacks in the United States affected confidence, the report
\nindicated.<\/p>\n
The consumer confidence index fell to 107.7 in October from
\n116.8 points in September.<\/p>\n
The tone of the survey remained positive given that an index
\nabove 100 still means that optimism outweighs pessimism.<\/p>\n
The biggest plunge was recorded in the Consumer Confidence in
\nthe Government Index, which fell to 134.0 from 152.2.<\/p>\n
Danareksa attributed the decline to a \"lack of leadership\" by
\nthe government in overcoming social and economic problems.<\/p>\n
Criticism has mounted against Megawati's economic ministers to
\nthe point that chief economics minister Dorodjatun Kuntjoro-Jakti
\nand his colleagues are no longer considered a \"dream team\", which
\nis the way they were greeted when selected in August.<\/p>\n
The survey on consumer confidence interviewed 1,700 households
\nin five regions regarding their spending patterns.<\/p>\n
The Central Bureau of Statistics said last week that real
\ngross domestic product grew by 2.38 percent in the third quarter,
\ndriven largely by strong consumer spending.<\/p>\n
While the government statisticians appeared hopeful that the
\n3.5 percent economic growth target for 2001 could be achieved,
\ndoubts have crept in among forecasters about prospects for 2002.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/consumer-confidence-falls-1447893297",
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