Indonesian consumers pessimistic about economic recovery: Survey

The Jakarta Post, Jakarta

Indonesian consumers were among the most pessimistic in Asia- Pacific, believing the economic recovery would not materialize until 2004, a survey said.

The AC Nielsen Asia Pacific Regional Survey on consumer confidence trends showed that the prolonged economic crisis, crime and the recent bombing in tourist haven Bali, might dampen consumer confidence in the economic outlook.

"Economic uncertainty, crime and fear of terrorism may have a negative impact on consumer confidence in Indonesia," Farquhar Stirling, managing director of AC Nielsen Indonesia said in the survey.

The gloomy economic picture has also significantly affected consumer spending on investment and the purchase of goods.

Indonesian consumers have yet to increase their spending for six months and have even cut their spending in many areas.

"Many consumers have postponed their vacation plans, or buying new computers or laptops, digital cameras or cellular phones," the survey said.

To top it off, 52 percent of consumers claimed they did not make any large purchases at all.

The survey was conducted in 13 Asia Pacific countries, namely Australia, the Philippines, Malaysia, Japan, Thailand, India, China, Singapore, New Zealand, South Korea, Indonesia, Hong Kong and Taiwan.

Over 9,800 consumers were involved in this online survey, which ran from Nov. 29 to Dec. 5. The online survey was carried out to gather information from Internet users in the Asia Pacific region on their attitude, preferences and media consumption with respect to products and services in different countries.

Japan was the most pessimistic country in the survey, while India was the most optimistic of the 13.

Overall, the majority of Asia-Pacific consumers believed the global economy would bounce back in the next 12 months to 18 months. The picture was even more gloomier than that produced by the last survey, conducted in July 2002.

"Apparently, regional consumers will be affected by the prolonged global recession in the next six months," the survey said.

In Southeast Asia, fear about security and a possible war in the Middle East have been behind the glum outlook.

In the region, which felt the brunt of terrorism on Oct. 12, fear of terrorism and war have increased dramatically, with Australian and New Zealand consumers expressing the most fears.

With the exception of Australians and New Zealanders, consumers in the region have been very thrifty in their spending. Most have cut their lifestyle spending.

"Most consumers have cut their expenditure on socializing, going out less and cutting down on using taxis. With uncertainty about when the economy will recover, they are more careful with their spending and have remained alert to an unpredictable future," Stirling remarked.