Election spurs consumer confidence

Election spurs consumer confidence

The Jakarta Post, Jakarta

September's successful and peaceful election helped boost the
consumer confidence index (CCI) during the month, offsetting the
negative sentiment stemming from a bomb attack earlier in the
month.

While a bomb blast outside the Australian Embassy on Sept. 9
killed 11 people and injured dozens of others, the smooth Sept.
20 election brought major relief for Indonesians, the latest
survey from the Danareksa Research Institute showed on Thursday.

"Reflecting this relief, the CCI rose 1.6 percent in September
to 99.6 points, jacked up by a whooping 7.7 percent surge in the
level of the present situation index (PSI) to 81.9, a 25-month
high," Danareksa said.

Most Indonesians also have confidence in the ability of the
new government -- led by the relatively market friendly President
Susilo Bambang Yudhoyono -- to deal with the country's myriad of
economic ills, the survey added.

"People are convinced that the new government can improve the
economy, contain inflation, provide better public services,
restore public order and security, and, above all, uphold the
law."

The positive sentiment had given people a renewed appetite for
purchasing durable goods, boosting the number of people who said
they intended to buy consumer durables over the next month to a
14-month high of 26.2 percent in September, as against 23.3
percent in August.