Consumer confidence index at lowest level<\/p>\n
JAKARTA (JP): Indonesia's consumer confidence index slid to
\nits lowest level of the year in April, threatening the stability
\nof the already fragile economy, the Danareksa Research Institute
\nsaid in a statement.<\/p>\n
The Consumer Confidence Index crossed below the
\npsychologically critical 100 level in April, falling to 98.5 from
\n101 in March as political and security concerns continued to harm
\nsentiment, the institute said.<\/p>\n
A reading below 100 means there are many more people who are
\npessimistic about the condition of the economy than there are
\nthose who are optimistic, it said.<\/p>\n
The Present Situation Index and the Expectations Index also
\nfell in April, going from 82.5 and 114.8 in March to 80.3 and
\n112.2, respectively.<\/p>\n
Both indicators suffered from an absence of new developments
\nto improve sentiment and from growing political uncertainty.
\nExtremely damaging to sentiment was the warning by Coordinating
\nMinister for Political, Social and Security Affairs Susilo
\nBambang Yudhoyono that the country was on the brink of collapse,
\nDanareksa said in its report.<\/p>\n
"Scaring people off is the likely arrival of another major hit
\nto the economy as signaled by some prompt indicators," it said,
\nciting the rapid descent of the rupiah against the U.S. dollar as
\none example.<\/p>\n
Confidence in the overall economy dropped 5.9 percent in
\nApril, with the economic outlook still clouded by uncertainty
\nover the fate of the country and the President, Danareksa said,
\nadding that this condition was likely to linger until August.<\/p>\n
The country is in the process of lurching from a political
\ncrisis into an economic crisis, the report said.<\/p>\n
"The unpleasant confluence of spreading social unrest, the
\ngrowing confrontation between legislators and the President and
\nincreasing budgetary pressures are capable of damaging the future
\nof Indonesia if left unattended and unchecked," Danareksa added.
\n(tnt)<\/p>",
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