Consumer confidence falls in January to lowest level
Consumer confidence falls in January to lowest level
The Jakarta Post, Jakarta
The consumer confidence index in January hit the lowest level in
three years amid pessimism over the country's economic recovery,
Danareksa Research Institute said in its latest monthly survey
released on Tuesday.
Danareksa said the consumer confidence index plunged by 13.6
percent to 86.8 last month from the previous level of 100.5.
It said that the drop coincided with the fall in both the
present situation index and the expectation index.
Danareksa said that the present situation index plunged to
69.3 from 82.2 reflecting the more difficult life endured by the
public in January due to the increase in fuel and electricity
prices and phone rates.
The institute said the expectation index dropped sharply to
its lowest level of 100.0 compared to 114.1 previously as
consumers were skeptical about the country's economic condition
over the next six-month period.
The institute surveyed some 1,700 households in six different
areas to measure the buying pattern of consumers and its effect
on the economy.
The survey, however, said the public remained confident in the
government that it could improve domestic security conditions.
"(But) most consumers appear to be unaware of the limitations
(of) the cash-strapped government ... to deal with the enormous
scale of the problem that inflicts the nation as a consequence of
the past abuse of power," Danareksa said.
"The current government needed to pull the economy out of its
inherited dilemma that has trapped the entire nation in a deep-
rooted malady," it added.
Elsewhere, Danareksa suggested that the government boost
efforts to attract foreign direct investment particularly in the
energy sector to facilitate economic growth and help address the
imminent power shortage as both fiscal and monetary stimulus look
highly improbable.
"This investment would shore up sagging confidence in
the economy, before consumers tighten their belts to fulfill
their belief that the economy is truly heading down," it said.