• Indonesia scored the highest index for 4th consecutive quarter
• Concern on political stability rises
Jakarta, 30 January 2014 – After passing in 2013 which is a pretty tough year, Indonesia remains the most optimistic market in Q4 2013. Consumer confidence in Southeast Asia in Q4 2013 continues to rank among the highest globally, despite having leveled out in the latest quarter, according to the latest Global Consumer Confidence Index from Nielsen, a leading global provider of information and insights into what consumers watch and buy.
“The pattern of consumer buoyancy that we have seen in the past in the lead up to elections is the case once more as confidence lifts 4 points on a quarter by quarter basis.” says Catherine Eddy, Managing Director, Nielsen Indonesia. “We saw a small contraction in consumer confidence in Quarter 3 following the impact of the reality of the fuel price increases and the resultant spike in inflation. However Quarter 4 saw a bounce back with a strong recovery in consumer confidence in Indonesia and back to the previous record high level we saw in Q2. This is good news for retailers as it indicates propensity for consumers to purchase the things they need and want to buy.”
According to the Nielsen Global Survey of Consumer Confidence and Spending Intentions, Indonesia reported the highest index score globally of 124 in Q4 2013 (up four points on the previous quarter and 26 points above the global average of 94), followed by Philippines and Thailand that also featured amongst the most confident nations despite recording slight declines over the last two quarters. Confidence in Philippines fell by four points to 114 in Q4 2013 compared to the previous quarter, and Thailand also recorded a three point decline to 109. Malaysia decreased 3 point to 108 , while Vietnam increased one points to 98, and Singapore fell by one point to 97.
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 in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.
STRONG CONFIDENCE IN PERSONAL FINANCES AND LOCAL JOB PROSPECTS
Indonesian online consumers showed strong confidence in their state of personal finances over the next 12 months with 84% stated that it is Good or Excellent. A similar sentiment was shown over the local job prospects. “There is strong confidence around job prospects with 74% of our online respondents telling us they think those prospects are Good or Excellent.” said Catherine.
AVID SAVERS AND EAGER TO TRAVEL
Despite remaining to be big savers, there is a decline on the intention to put spare cash into savings in Q4 2013 (72%) compared with the previous quarter (76%) for Indonesian online consumers. Meanwhile, intention to spend spare cash for holidays increased 5 points compared to the previous quarter. This is in line with the Global and Asia Pacific trends where Savings and Holidays are on top of the consumers’ intention to spend their spare cash. “Most people still allocated spare cash to savings but we see an increasing proportion (42%) telling us that they spent at least some of their spare cash on holidays or vacations. This is heavily driven by the affordability of airline travel in Indonesia making intra and international travel more accessible than ever during the holiday season.” Catherine explained. “Of the 78% who have changed their spending patterns over the past year the greatest claimed impact is by delaying technology purchases (56%) and cutting back on out of home entertainment (53%). The increase in confidence, the general buoyancy in the lead up to elections and the impact that has on the economy generally should see continued positive times ahead for Indonesia.”
POLITICAL STABILITY THE SECOND BIGGEST CONCERN
As Indonesia is heading towards the presidential election, concern on political stability rises as the second biggest for Indonesians. In Q3 2013, political stability was the 3rd major concern for Indonesian netizens with 14% saying that political stability is their biggest and second biggest concern. In Q4 2013, it has become the 2nd major concern with 18% saying that it was their biggest and second biggest concern. “Indonesians are concerned with the upcoming presidential election; and it might continue across 2014, however, we can see that it does not impact the consumer confidence and their spending intentions. Therefore we believe that the prospects of industry and business will remain good in 2014.” Catherine concluded.
Miladinne Lubis, +62 855 108 2304, [email protected]