August consumer confidence improves
Consumer confidence improved in August as the impact of fuel price rises subsided, but consumers were still largely pessimistic, expecting costs to increase in the near term, two surveys showed, Reuters reported.
A central bank survey of 4,600 households in 18 cities showed the consumer confidence index rose to 89.3 in August from 82.1 in July.
A reading below 100 means consumers are pessimistic. The last time the index was above 100 was in November 2007.
"Respondents expect prices in general to increase in the next three and six months," the central bank said in the report posted on its website.
A separate survey of 1,700 households across six provinces by the state-run Danareksa Research Institute also showed an improvement in sentiment, with the index rising to 75.7 from 72.7 in July.
"The impact of the fuel price hike only lasted for two months. Consumers started to regain confidence but the government needs to maintain, especially, prices of basic foodstuff," said Danareksa Institute economist Purbaya Yudhi Sadewa.
The government raised the price of subsidized fuel in late May by an average of 29%. The move sparked some protests, as well as pushed up inflation to double digits and forced the central bank to raise interest rates.
Annual inflation eased slightly to 11.85% in August from 11.9% in July, which was the highest level in almost two years.
Analysts say price pressures will remain high due to steady demand, especially for food, during the fasting month of Ramadhan and the Idul Fitri holiday.
FX reserves on track to reach $60B: BI
Indonesia is still on track to accumulate $60 billion worth of foreign exchange reserves by the end of this year, central bank deputy governor Hartadi Sarwono said, Reuters reported.
His remarks came after the country's foreign exchange reserves fell to $58.36 billion in August from $60.56 billion a month earlier partly due to efforts by Bank Indonesia (BI) to stabilize the rupiah.
"(Forex reserves) have to be at least four months worth of imports and government debt (repayment). That's the best thing and that is what we are trying to maintain," Sarwono said, adding that the amount should be an equivalent of $60 billion.
A central bank survey of 4,600 households in 18 cities showed the consumer confidence index rose to 89.3 in August from 82.1 in July.
A reading below 100 means consumers are pessimistic. The last time the index was above 100 was in November 2007.
"Respondents expect prices in general to increase in the next three and six months," the central bank said in the report posted on its website.
A separate survey of 1,700 households across six provinces by the state-run Danareksa Research Institute also showed an improvement in sentiment, with the index rising to 75.7 from 72.7 in July.
"The impact of the fuel price hike only lasted for two months. Consumers started to regain confidence but the government needs to maintain, especially, prices of basic foodstuff," said Danareksa Institute economist Purbaya Yudhi Sadewa.
The government raised the price of subsidized fuel in late May by an average of 29%. The move sparked some protests, as well as pushed up inflation to double digits and forced the central bank to raise interest rates.
Annual inflation eased slightly to 11.85% in August from 11.9% in July, which was the highest level in almost two years.
Analysts say price pressures will remain high due to steady demand, especially for food, during the fasting month of Ramadhan and the Idul Fitri holiday.
FX reserves on track to reach $60B: BI
Indonesia is still on track to accumulate $60 billion worth of foreign exchange reserves by the end of this year, central bank deputy governor Hartadi Sarwono said, Reuters reported.
His remarks came after the country's foreign exchange reserves fell to $58.36 billion in August from $60.56 billion a month earlier partly due to efforts by Bank Indonesia (BI) to stabilize the rupiah.
"(Forex reserves) have to be at least four months worth of imports and government debt (repayment). That's the best thing and that is what we are trying to maintain," Sarwono said, adding that the amount should be an equivalent of $60 billion.