Indonesia’s consumer confidence index on the rise
TEMPO Interactive, Jakarta:A survey by Indonesia Nielsen shows the Consumer Confidence Index (IPK) rose successively from the first quarter to mid-2012. It was triggered by high economic growth and an improvement in Indonesia's investment rating.
"Consumer optimism throughout the year has been triggered by a higher investment rating by Moody's and Fitch," said Nielsen Indonesia managing director, Catherine Eddy on Tuesday.
In the second quarter of 2012, Nielsen pegged the Consumer Confidence Index in Indonesia at level 120, up two points over the first semester when it reached 118. Compared to same period in 2011, this index has risen eight points. This is a record high since 2008.
The survey, conducted from May 4 to May 21 also shows Indonesia is among the most confident in the world. Indonesia’s IPK is 30 points higher than the global average.
Catherine says that 55 percent of Indonesian consumers believe that this year is an excellent time to shop. This indicator shows that people's purchasing power is high and people feel confident about their ability to purchase goods and services in the near future.
"The market is bright. With a population of 240 million people, Indonesia will become the next biggest economy after China and India," she said.
In the study, Nielsen Indonesia notes that 25 percent of the respondents are interested in spending money on new technological products, while 29 percent are more interested in investing money in stocks or mutual funds. However, spending on vacations and savings has fallen to 29 percent and 68 percent respectively.
Another interesting phenomenon is the change in shopping habits. More than two-thirds of people, or 77 percent of respondents, are prioritizing domestic spending.
By Fery Firmansyah
18 July 2012