Consumers upbeat about Indonesia’s economy despite falling February index

The consumer confidence index in Indonesia edged down in February, but the consumers in the country remain optimistic about the economy, a survey by the Indonesian central bank showed on Monday.

The Indonesian consumer confidence index slumped to 117.7 in February from 121.7 in January.

Reading above the 100 level suggests that consumers are upbeat on the country's economy, while reading below the figure indicates pessimism.

The consumers' perception on the current economic condition and their expectation on the condition of the economy in the future have improved.

The consumers are sanguine on the economic condition within the next six months, including their earnings, job availability and business activities.

The spending on household consumption is expected to edge up in the next three months as the world's largest Muslim country will observe the holy month of Ramadhan which will end in May this year with Eid al-Fitr (the Muslim post-fasting festivity).

The increase in spending is indicated by the hike of the index for household consumption to 165.5 from 162.6 in the presiding month.

The fall of the consumer confidence index in February was in line with the core inflation, exempting administered prices and volatile prices, in the month which nudged lower to 2.76 percent from 2.88 percent in the presiding month, data from the Indonesian Central Agency of Statistics showed.

The Indonesian central bank, Bank Indonesia, has vowed to safeguard rupiah volatility and heralded readiness to apply economic stimulus to shore up the economy.

Indonesia's economy accelerated 5.02 last year amid downside risks of the global economic uncertainty.

Source: China ASEAN Business Council