Nielsen survey gauges growth in RI economy

Nielsen survey gauges growth in RI economy

JAKARTA (JP): More than half the population in the country's
five major cities feel the economy has recovered and would
further strengthen, according to a survey conducted by AC Nielsen
marketing research company.

The company said its latest research conducted in Jakarta,
Surabaya, Bandung, Medan and Semarang in August indicated that 58
percent of those surveyed felt the economy had improved, while 77
percent felt the recovery would continue next year.

The same survey also showed 42 percent of Indonesians felt
their own economic situation had improved and 69 percent felt the
situation would strengthen over the next year.

"The figures in May were only 22 percent and 57 percent
respectively," Farquhar Stirling, the company's managing
director, told a media briefing. He added that 69 percent now
felt more secure in their job compared with 62 percent in May.

"We have seen a significant rise in consumer confidence,
especially following the landmark June legislative elections," he
said.

Household income has also improved generally, with 44 percent
of adults interviewed claiming their income improved compared to
a year ago and 38 percent said it stayed the same. Only 17
percent believed their income had worsened.

"This greater buying power and consumer confidence is
translating into higher retail sales for most food and nonedible
packaged consumer goods, the largest increase in spending
recorded since mid-1997," Stirling said.

While sales volumes of most packaged goods are only running at
80 percent of precrisis levels, there was a recent growth in
sales of most products and a leveling off or decline in prices.
This is an optimistic sign for improving the general standard of
living in both urban and rural areas.

Among the media, television advertisements have seen the most
dramatic increase, as grocery marketeers vie to position their
products for the recovery of the Indonesian consumer markets,
while taking advantage of favorable TV advertising rates.

The volume of TV ads during the third quarter of 1999 rose to
more than 14 percent over the second half of 1997 and the volume
of print ads recovered to precrisis levels.

"We expect the volume of ad spots on TV will post a
significant 38 percent growth for 1999 compared to the 17 percent
drop suffered in 1998," he said.

TV and radio have maintained an important place in the lives
of Indonesians as the public tunes in to keep itself abreast of
political developments and national security concerns. Almost
eight of every ten adults in major cities watch some TV daily,
while four of every ten listen to the radio.

"Newspapers and magazines have lost out to some extent because
fewer consumers want to spend money and because electronic media
can capture news in a fast-changing political situation," he
said.

AC Nielsen, offering services in over 100 countries and with
1998 revenues of US$1.4 billion, is the global leader in
delivering market research, information and analysis to consumer
products and service industries. (06)