Muhamad Al Azhari – Consumer confidence rose to the highest level in years, as Indonesians report feeling secure about stable food prices and the nation's economic welfare, according to a survey released on Monday.
The survey, conducted by the Danareksa Research Institute, recorded a rise in the Consumer Confidence Index to 91.8 points in June, up 1.2 points from one month prior. The indicator hasn't been this high since September 2009.
The poll surveyed some 1,700 households in six regions, asking questions that, when analyzed, serve as a litmus test for the state of the economy. According to the results, consumer confidence increased in June, with the score edging closer to 100 points.
A score of more than 100 points means that consumers are upbeat about the future of the nation's economy. A lesser score means consumers are less likely to purchase durable goods – big-ticket items like cars, appliances and jewelry.
"With confidence toward the economy improving, consumer plans to purchase durable goods increased in June," the survey said. In June, 29.7 percent of respondents said they planned to buy durable goods in the next six months, compared to 28.1 percent in May.
The poll's results bucked tradition, where consumers typically avoid buying costly items until after Ramadan, which starts in late July. But bolstered by reports that inflation would rise only slightly, consumers are looking to purchase durable goods ahead of the holiday.
The Central Statistics Agency (BPS) reported on July 1 that inflation rates slowed in June to the lowest level in a year, 5.54 percent. Inflation rates reached 5.98 percent in May.
Analysts and central bankers were optimistic inflation rates would remain within the central bank's safe range of 4 percent to 6 percent.
The central bank has yet to release its consumer survey for June. In May, the bank's survey, which sampled 4,600 households in 18 large cities, reported that consumer confidence fell 1.6 points to 105.3. Bank Indonesia said consumers were expecting a rise in inflationary pressures in the next three to six months, peaking in August when costs of goods and services increase during Ramadan and Idul Fitri.