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INDONESIA IS STILL ONE OF THE MOST OPTIMISTIC COUNTRIES IN Q4 2017

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INDONESIA IS STILL ONE OF THE MOST OPTIMISTIC COUNTRIES

IN Q4 2017

●     Indonesian Consumers’ Intention To Spend Increased

●     Concern about Political Stability was Unchanged

Jakarta, 11 April 2018The Conference Board® GlobalConsumer Confidence™ Survey, in collaboration with Nielsen, recently released the result of the study that shows that Indonesia is still amongst the most confident markets globally.

Indonesia Consumer Confidence Index (CCI) for Q4 2017 is 125, slightly decreased compared to the previous quarter with 127. Despite the decrease, Indonesia remains in the top three of the world’s most optimistic countries after Philippines (131) and India (130).

CCI is influenced by three indicators, i.e. optimism on the (1) Local Job Prospect, (2) Personal Finance, and (3) Intention To Spend; over the next 12 months. For Indonesia, consumer optimism on Future Local Job Prospect decreased from 75% in Q3 2017 to 70% in Q4 2017. Meanwhile, the optimism on Personal Finance is stable at 68% for the last two quarters of last year. The good news is, in Q4 2017, 6 out of 10 (60%) consumers said that the next 12 months is a good time for them to spend for things they want and they need. The last indicator increased from 56% in Q3 2017.

“Q4 2017 showed that there are more consumers with intention to spend over the next 12 months. This is an indicator of opportunities for brand owners, hence it is important to increase engagement with their consumers.” said Agus Nurudin, Managing Director, Nielsen Indonesia.

On the other hand, CCI Q4 2017 also showed that there is a quite significant increase in consumer’s recessionary sentiment. In Q4 2017, more than 5 out of 10 (53%) consumers think that Indonesia is in an economic recession; while in Q3 2017, only 47% consumers think that the country is in an economic recession.

“Consumer recessionary sentiment showed an encouraging trend in the last three quarters before Q4 2017; with 46%, 48% and 53% consumers respectively said that Indonesia is not in an economic recession. Unfortunately, the trend declined in Q4 with only 47% consumers saying that the country is not in an economic recession. This should be a concern, and the government should find a way to restore consumer’s positivity.” explain Agus.

Saving and investment have always been the main usage of spare cash for most of Indonesian consumers. In Q4 2017, 67% consumers chose to allocate spare cash for Savings, 44 percent chose to spend on Holidays/Vacations, and 33 percent chose to Investing in Shares or Mutual Funds. When it comes to consumer strategies to save on household expenses, most consumers (49%) chose to Spend Less on New Clothes. Cutting Down on Out-Of-Home Entertainment (46%), Delay Upgrading New Technology (43%), Cutting Down on Holidays/Short Breaks (40%) and Cutting Down on Take Away Meals (35%) were also consumers’ strategies to save on household expenses.

In Q4 2017, Indonesian consumers’ concerns about the Economy increased to 32 percent compared to the previous quarter (30%). Concern of Tolerance Towards Different Religions jump into the top 5 consumer concerns over the past year, but the number declined in this quarter (16%) from the previous quarter (18%).

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About The Conference Board® Global Consumer Confidence Survey

The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen. It was conducted November 8 through November 23, 2017 and polled more than 32,000 online consumers in 64 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample includes internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of internet consumers by country. Because the sample is based on those who agreed to participate, no estimates of theoretical sampling error can be calculated. However, a probability sample of equivalent size would have a margin of error of ±0.6% at the global level. This survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. The Conference Board uses a minimum reporting standard of 60% internet penetration or an online population of 10 million for survey inclusion. The Nielsen China Consumer Confidence Index is sourced from a separate survey conducted by Nielsen China, which is based on a mixed methodology survey of more than 3,000 respondents in China. The Global Consumer Confidence Survey was established in 2005.

About The Conference Board

The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: to provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. Winner of the Consensus Economics 2016 Forecast Accuracy Award (U.S.), The Conference Board is a non-advocacy, not-for-profit entity, holding 501(c)(3) tax-exempt status in the USA. Visit http://www.conferenceboard.org

About Nielsen

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