Consumer confidence rises to 37-month high

Delight and relief after the successful elections lifted the Consumer Confidence Index (CCI) by 6.2 percent to a 37-month high of 105.8 in October, Danareksa Research Institute (DRI) announced on Tuesday.

According to DRI, the Present Situation Index (PSI) climbed 2.9 percent to a 35-month high of 84.2, while the Expectation Index (EI) soared by 8.1 percent to 122.0, a level unseen since October 2001.

People were not as nervous as in previous months and could even feel content following the official announcement of the presidential election in early October, DRI said in a press statement.

With the risks from elections decreasing substantially with the inauguration of Indonesia's new leaders, optimism grew hoping the new government would soon realize its promise of improving the welfare of the nation's citizens, it said.

Accordingly, the Consumer Confidence in the Government Index (CCGI) jumped 6.7 percent to a 34-month high of 129.4 in the October survey.

People are expecting that the new government's economic program succeed and result in an abundance of jobs and the improvement of family income.

DRI suggested that the government should manage the expectations to anticipate changes in people's sentiment toward the administration as it would take considerable time before it could met people's expectations. -- JP