Local consumers confidence back at precrisis level: Survey
Local consumers confidence back at precrisis level: Survey
JAKARTA (JP): Indonesian consumers are more optimistic about
the future of the country's economy and their own income and
quality of life today than in recent years, a survey conducted by
Mastercard International has found.
The MasterCard International country manager, Bambang Gunawan,
said the MasterIndex survey found the level of Indonesian
consumer confidence increased to reach an average of 90.3 at the
end of last year, up from 82.1 in June last year and 15.3 in
1998.
"In conclusion, the confidence of Indonesian consumers in the
future of the country's economy and their financial life has
definitely returned to the precrisis levels."
He said consumers responded that they were particularly
optimistic about an improvement in their income and more
employment opportunities.
The positive perceptions of consumers is good news for
interested parties such as banks and consumer goods producers, he
added.
"We cannot guarantee that the significant increase in the
level of confidence of consumers will automatically result in an
equivalent increase in consumer spending, including credit card
use," he said.
"But at least the indications found in the survey can be used
as consideration by banks or retailers in developing a short-term
strategy for their customer services."
He said the company expected that the upbeat perception showed
by Indonesian consumers in the survey would encourage local banks
to resume promoting their credit card products.
The country's economic collapse which began in mid-1997 and
resulted in the dramatic drop in consumer purchases led many
banks to be extremely selective in awarding credit cards to new
applicants to avoid bad debts.
Bambang said the growth in the number of credit card holders
was especially stagnant last year, although the transaction
volume increased 30 percent, apparently a result of the surge in
prices since the crisis.
He said the MasterIndex survey was aimed at collecting
information on consumer views and expectations on particular
economic factors: economic outlook, employment, regular income,
the stock market and quality of life, for the next six months. It
is conducted twice a year in 13 countries including Indonesia,
the Philippines, Thailand, Japan, Australia, South Korea,
Malaysia, Singapore and New Zealand,
He noted, however, that political aspects were not included in
the survey.
Indonesian consumers ranked third in confidence in the Asia-
Pacific region after Singaporeans (92.1) and Malaysians (91.3).
The survey also found dramatic surges in overall consumer
confidence in Hong Kong, from 51.5 to 85.1, India, from 44.5 to
70.1, and New Zealand, from 59.3 to 65.7.
"The exuberance exhibited by consumers in many markets in the
region is noteworthy. Businesses are just recovering from the
regional downturn, but it's interesting that consumer sentiment
has bounced back so quickly and so robustly," the survey
concluded.
MasterCard International's debit cards Maestro/Cirrus are used
by eight million consumers in Indonesia, while its credit cards
are used by approximately one million people. (cst)