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INDONESIA REMAINS THE 2ND MOST OPTIMISTIC COUNTRY GLOBALLY

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 Indonesia scored 123, increased three percentage points compared to previous quarter.
Crime and health rose amongst major concerns in this quarter.

JAKARTA, 20 MAY 2015 – Indonesia consumer confidence got stronger in Q1 2015 compared to the previous quarter and remains the 2nd highest globally. India remains the most optimistic country for three consecutive quarters, according to the latest Consumer Confidence Index released by Nielsen, a global information and measurement company. The Nielsen Global Survey of Consumer Confidence and Spending Intentions also reveals that five of six Southeast Asian markets register a confidence index 100 percentage points (pp) and above. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Consumers in Indonesia remain the second most confident globally, with an index score of 123 in Q1 2015(+3 percentage points(pp) compared to previous quarter). Across Southeast Asia, although down 5 pp compared to the last quarter, Philippines is tied in second place after Indonesia with a consumer confidence score of 115 points. Thailand came in third with an index score of 114 (+3 pp versus last quarter). Vietnam recorded the highest increase with 112 points (+6 pp versus previous quarter) and Singapore is stable at 100 points. Meanwhile, India remains the most optimistic country with and index score of 130 (+1pp versus last quarter). (See Chart 1).

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions amongst more than 30,000 respondents with Internet access[1] in 60 countries.

LEVEL OF OPTIMISM IN INDONESIA REMAINS HIGH

Globally, Indonesian consumers are the most optimistic about their state of personal finances with more than 8 out of 10 (84%) Indonesian online consumers believed that the state of their personal finances in the next 12 months will be good or excellent. This is a 4% increase compared to Q4 2014.

Similar pattern is seen in the level of optimism about job prospects. In Q1 2015, globally Indonesian consumers are the 2nd most optimistic about the job prospects after India, with more than 7 out of 10 (74%) Indonesian online consumers believed the job market would be good or excellent in the next 12 months; a slight increase compared to the previous quarter with 73%. The outlook on spending amongst Indonesian online consumers also remains positive, with 56% consumers indicated that that the next 12 months will be a good or excellent time to buy the things they want or need.  (See Chart 2).

SAVING AND INVESTMENT CONTINUE TO BE THE PRIORITY FOR INDONESIAN CONSUMERS

Indonesian consumers are the world’s most avid savers, with three-quarter (75%) channel their spare cash into savings, compared to just 48% globally and 61% in Asia Pacific. Besides savings, more than a third of Indonesians (35%) are channelling their spare cash into stock/mutual funds, while 41% allocate their spare funds to go on vacation.  

CRIME AND HEALTH ROSE AMONGST TOP FIVE CONCERNS TO INDONESIANS

The Economy remains the top concern for Indonesian online consumers since Q4 2014, with 33% citing the economy as their biggest concern over the next six month. In this quarter, surprisingly concerns on Crime and Health increased significantly into the top five major concerns for consumers. Crime became the 2nd major concern (23%) and Health ranked the 5th (14%). (See Chart 3).

“It is quite surprising that Crime rose as the 2nd major concern for Indonesian consumers. It seems that consumers perceived that the economic situation has been difficult in the past six months, and it might trigger the increase of crime rate.” said Agus Nurudin, Managing Director, Nielsen Indonesia. “We believe, however, that the goverment is taking the necessary actions to restore the economy so that consumers can regain their sense of security.”

Chart 1: Nielsen Consumer Confidence Index, Asia Pacific, 2015

Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q1 2015

Chart 2: Outlook on Spending, Asia Pacific, Q1 2015

Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q1 2015

Chart 3: Top Five Major Concerns, Indonesia, Q1 2015

Source: Nielsen Global Survey of Consumer Confidence and Spending Intentions, Q1 2015

About the Nielsen Global Survey

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted February 23 – March 13, 2015 and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA, and Diemen, the Netherlands. For more information, visit www.nielsen.com.

[1]While an online survey methodology allows for tremendous scale and global reach, it provides a perspective on the habits of existing Internet users, not total populations. In developing markets where online penetration has not reached majority potential, audiences may be younger and more affluent than the general population of that country. Additionally, survey responses are based on claimed behavior, rather than actual metered data