Consumer confidence rises to 37-month high

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