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Survey Finds Rising Economic Optimism Among Indonesians

Cindy Frishanti
Cindy Frishanti
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Survey Finds Rising Economic Optimism Among Indonesians
Indonesians remain upbeat about financial conditions over the next 12 months on the back of steady economic growth and stable oil prices so far this year. According to a survey by the Indonesian Chamber of Commerce and Industry (Kadin) and Roy Morgan Research, 82 percent of respondents expect Indonesia will have “good times” financially during the next 12 months, compared with 18 percent who anticipate “bad times.” “The upswing is exceptional, not only in contrast with other G-20 countries, but in comparison within Asia as well,” Kadin chairman Suryo Bambang Sulisto said in a statement. “Both China and India have revised growth forecasts downward, but Indonesia is holding steady.” Indonesia’s consumer confidence index stands at 146.5, up 1.3 points from November and 9.5 points higher than a year ago, from October to December 2010. The survey stated that an increasing majority of Indonesians, up by 5 percent to 57 percent in December, say “now is a good time to buy” major household items. Meanwhile, a whopping 89 percent of Indonesians expect Indonesia will have “good times” economically over the next five years, compared with 11 percent who expect “bad times.” However, Suryo said this consumer confidence might not last over the next several months amid the threat of rising oil prices and a government plan to limit subsidized fuel consumption, both of which may dent consumer optimism. “For now, Indonesia remains unscathed. The situation in the Strait of Hormuz has not affected oil prices yet,” he said. “If the seas remain calm, the threat of an oil price rise will not rock our boat. The oil subsidy is taking too much of a toll on Indonesia’s treasury already.” The monthly Kadin-Roy Morgan survey was based on 2,089 face-to-face interviews conducted throughout Indonesia. It included people from 21 major cities, smaller cities and towns as well as villages in rural hinterlands. Men and women aged 14 and older were randomly selected during December. Source: The Jakarta Globe

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