RI November consumer confidence rises to 2-year high
RI November consumer confidence rises to 2-year high
Soraya Permatasari, Bloomberg
Indonesia's consumer confidence rose in November to its highest in at least two years on optimism the new government will boost economic growth and create jobs, a survey said.
Half of the 2,900 respondents interviewed by the Indonesian central bank last month expect to earn more in the next six months, while three percent believe they will earn less. The survey covered residents in Jakarta, Bandung, Semarang, Surabaya, Medan, Makassar, Bandar lampung, Palembang and Banjarmasin, Bank Indonesia said in an e-mailed release today.
Consumers "have high hopes of a successful economic program by the new government, especially in job creation," the statement said.
President Susilo Bambang Yudhoyono took office as Indonesia's sixth president on Oct. 20 on pledges to boost growth and create jobs for as many as 40 million of the country's 235 million people who are either unemployed or work fewer than 35 hours a week.
Still, respondents are less likely to buy durable goods in the next six months, the survey showed. About 56 percent expect interest rates will remain stable, while 29 percent see an increase. Consumer spending accounts for 70 percent of Southeast Asia's biggest economy.
Indonesia's gross domestic product may grow 4.8 percent this year and 5.5 percent in 2005, Finance Minister Jusuf Anwar said on Dec. 9. The government aims to raise economic growth to 7 percent by the end of 2009.
The US$208 billion economy needs to expand 6.5 percent a year until 2014 to maintain social stability, the World Bank has said.
Below are key findings of the monthly survey:
Any number below 100 in the index indicates a greater number of pessimists than optimists, while any number above shows more optimists than pessimists, the report said.
Index Nov. Oct. ------------------------------------------------------------ Consumer confidence index 120.4 114.2 Present situation index 97.3 88.9 Expectations index 143.4 139.5 Economic conditions 122.6 121.0 Employment conditions 94.8 73.1 Income prospects 146.4 147.9 Economic prospects 157.5 157.7 Employment prospects 126.4 113.0