Consumer confidence index at lowest level

Consumer confidence index at lowest level

JAKARTA (JP): Indonesia's consumer confidence index slid to
its lowest level of the year in April, threatening the stability
of the already fragile economy, the Danareksa Research Institute
said in a statement.

The Consumer Confidence Index crossed below the
psychologically critical 100 level in April, falling to 98.5 from
101 in March as political and security concerns continued to harm
sentiment, the institute said.

A reading below 100 means there are many more people who are
pessimistic about the condition of the economy than there are
those who are optimistic, it said.

The Present Situation Index and the Expectations Index also
fell in April, going from 82.5 and 114.8 in March to 80.3 and
112.2, respectively.

Both indicators suffered from an absence of new developments
to improve sentiment and from growing political uncertainty.
Extremely damaging to sentiment was the warning by Coordinating
Minister for Political, Social and Security Affairs Susilo
Bambang Yudhoyono that the country was on the brink of collapse,
Danareksa said in its report.

"Scaring people off is the likely arrival of another major hit
to the economy as signaled by some prompt indicators," it said,
citing the rapid descent of the rupiah against the U.S. dollar as
one example.

Confidence in the overall economy dropped 5.9 percent in
April, with the economic outlook still clouded by uncertainty
over the fate of the country and the President, Danareksa said,
adding that this condition was likely to linger until August.

The country is in the process of lurching from a political
crisis into an economic crisis, the report said.

"The unpleasant confluence of spreading social unrest, the
growing confrontation between legislators and the President and
increasing budgetary pressures are capable of damaging the future
of Indonesia if left unattended and unchecked," Danareksa added.
(tnt)