G. K. Goh, Jakarta – Fears of social unrest in Indonesia continued to chip away at consumer confidence in May, state brokerage Danareksa said its latest survey showed on Wednesday. Sentiment about future job prospects fell to its lowest since it started surveys in October 1999, the company said.

In its monthly survey of around 1,700 respondents, Danareksa said its index on job prospects for the next six months fell to 98.1 from 103.0. An index reading below 100 indicates that negative responses outweigh positive ones.

"Lingering doubts over the prospect of a sustainable economic recovery in the second half of 2001 and inflation threats unsettled consumers and caused their sentiment on job availability over the next six month period to turn to 98.1 from 103, the lowest in the history of the survey," the report said.

The survey preceded a series of worker protests in east and west Java last week, when police fired tear gas and warning shots to disperse thousands of protesters angry over a decree to end severance pay. The government has postponed implementing the decree following the backlash.

The overall Consumer Confidence Index (CCI) fell to 96.3 from 97.9 "The CCI has been in a bear run, extending its losses for four months in a row. Overall sentiment was poor amid fears that civil unrest might erupt." The confidence index on family income also sagged on the prospect of rising fuel and electricity prices.

Respondents said they would likely curb their future spending as a result. "The portion of respondents planning to cut spending on durables rose from 73.5 percent to 77.7 percent."

The government raised fuel prices by an average of 30 percent on Saturday. Parliament has also approved a hike in electricity tariffs by 17.47 percent to take effect on July 1.