Optimistic Indonesia Tops Consumer Survey

Jumat, 20 Januari 2012 | 07:36

Rosy expectations about the economy have made Indonesian consumers among the most optimistic in emerging economies, a survey from Credit Suisse Research Institute shows.In the survey, published on Thursday, Credit Suisse said that even though Indonesia was among the poorest of the eight countries surveyed, it was the third-most optimistic, after India and Brazil.

The other countries in the survey were Russia, China, Turkey, Saudi Arabia and Egypt.

Indonesia’s per capita income is estimated at $3,465 by Credit Suisse. Per capita income in Turkey, which is Indonesia’s closest rival for joining the BRIC group, is $11,054.

“The rise of Indonesian consumer confidence reflected by this survey is a welcome signal for global investors looking at this country,” said Ella Nusantoro, vice president for research at Credit Suisse.

Reflecting Indonesia’s resilient economy, Moody’s Investors Service on Wednesday raised the country’s credit rating to investment level for the first time since the 1997 Asian financial crisis.

With more disposable income, consumers are more confident about purchasing goods such as cars and homes, the survey said.

Auto sales last year hit a record 890,410 units, according to the Association of Indonesian Automotive Industries (Gaikindo).

Credit Suisse reported that sectors such as automotive and technology still had considerable growth potential, and that food costs were a major factor in discretionary spending.

Consumers spend most of their household budgets on food (almost 30 percent) and changes in food prices determine a lot of spending decisions, it said.

Credit Suisse found that 38 percent of respondents expect their “position to improve in the coming six months.” This level of consumer expectations is up from 34 percent in 2011.

It also found that richer respondents were the most optimistic about the future. However, robust confidence was also found among the poorer respondents.

Credit Suisse surveyed 1,548 people across 10 geographical locations. Sixty-six percent of the respondents lived in urban areas and the remaining 34 percent resided in the countryside.

By Francezka Nangoy
Source: http://www.thejakartaglobe.com