CONSUMERS’ CONFIDENCE INDEX IN DECEMBER 2011

          Consumers Confidence once again strengthened in December 2011 where Consumers’ Confidence index (IKK) rose by 0.2% to the level of 91.6. This was the highest IKK level in the past 6 months. Strengthened consumers confidence was thanks to better consumer’s perception of the state of national and local economy today. This development signaled that the process of expansion in Indonesia’s economy was not affected by the turbulence in the global economy. Throughout 2011 CCI and moved up significantly which indicated that consumers confidence had been constantly improving over the year.

            Survey outcome of Danareksa Research Institute for December 2011 unveiled that of the two components that formed CCI in December, the two components that formed CCI in December, the component which represented the present condition (The present Situation Index or ISS) increased by 2.5% to become 77.6. This increase was because consumers evaluation on national and local economy had increased. On the contrary, other CCI components which reflected condition of the future (Expectation Index or IE) went down by 1.1% to the level of 102.1. This indicated that the public optimism about the prospect of economy as a whole in the next six months slightly dropped. This downturn was related to the expectation of price increase in the next 6 months.

           Survey showed that consumers were still worried about the chances of increased price of goods in the next six months. Index which measured consumers sentiment about inflation had increased by 3.0% to the level of 189.0 in December which was the highest level in the last 4 months. Apparently according to the latest survey, around 89.9% of consumers being surveyed in December were still worried about increased prices of goods which rose by 86.5% against the previous survey.

            Since public optimism of the prospect of economy as a whole in the next six months was kind of law, their plan to buy durable goods also dropped in December. The latest survey had it that around 35.6% consumers under survey planned to buy durable goods in the next 6 months lower than the 40.2% in November. In spite of downturn, consumers’ plan to buy durable goods was still high because the percentage of consumers who planned to buy durable goods was still relatively high, not too far from the highest level in January 2000.

         Meanwhile consumers confidence in Government’s capability to perform their duty slipped back in December. Index of Consumers Confidence (IKKP) slumped by 2.21% to the level of 86.0 against 87.9 in November 2011. In the latest survey, all components that made up IKKP (index of consumers’ confidence in the Government in maintaining price stability and propel economic growth, to procure and maintain public facilities and enforce the law) dropped, except the component which indicated Government’s capability to maintain a safe and orderly environment (index rose by 1.06% to become 100.9 against 99.8 in November.