Indonesia Consumer Optimism Remains High But Spending Slower

JAKARTA (TheInsiderStories) – Indonesia consumer confidence slightly stronger in the second quarter (2Q) of 2017 compared to the 4Q of 2016 despite the slower spending based on the latest Consumer Confidence Index released by Nielsen. Globally, the country level is in the third ranked after Philippines and India,

The research reveals that Indonesia consumer confidence score of 121 points or up to 1 point as well as overtaking two countries position namely United States of America (118) and Vietnam (117). Philippines (130) consumer confidence is also overtaking India (128) as the most optimist country globally. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Indonesia’s consumer perceptions of the economic recession are also recovering. In the second quarter of 2017, Indonesian consumers who believe that the country is not in the economic recession was 48 percent or increase compared to the fourth quarter of 2016 level of 46 percent,” research stated.

However, Indonesian consumers confidence is decreased 2 percent related to their state of personal finances in the next 12 month despite 79 percent consumer remain positive. Similarly, the outlook on spending amongst Indonesian consumers also still confident with 57 consumers indicated that the next 12 months will be a good or excellent time to buy the things they want or need amid the decrease of 2 percent compared to the fourth quarter of last year. Meanwhile, level of consumer optimism about job prospects still stable at the level of 68 percent.

Related to the household cost savings, 45 percent of Indonesian online consumers chose to reduce entertainment spending, 44 percent of consumers said they are also reducing to buy new clothes and 40 percent decide to reduce vacation spending,” the research said.

The economic condition remains the top concern for Indonesian online consumers with 30 percent or higher than 4Q-2016 of 26 percent citing the economy as their biggest concern over the next six month. In this quarter, intra-religion tolerance (22 percent) and political stability (20 percent) despite showing a downward trend. But, surprisingly the terrorism threat and the well-being and happiness elder are coming up as the significant concern in this quarter.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted May 20 – June 10, 2017, and polled more than 30,000 online consumers in 63 countries. This survey only gives the perspective from the internet users habits, not the total population. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005. (RF)