Jakarta: The Conference Board® GlobalConsumer Confidence™ Survey, in collaboration with Nielsen, recently released the results of its study which showed that, despite a slight decrease compared to Q4 2018, the Indonesian Consumer Confidence Index (CCI) was relatively stable at 125 in the first quarter of 2019.
"This figure puts Indonesia as the fourth most optimistic country globally," Nielsen said in a press statement released on Monday.
CCI is influenced by three indicators. They are local job prospect, personal financial state, as well as intention to spend.
For Indonesia, optimism for local job prospect increased from 68% in the fourth quarter of 2018 to 72% in the first quarter of 2019. In addition, 83% of consumers had a positive perception of their personal financial state, up from 79% in the previous quarter. Meanwhile, only 56% of consumers stated that the next 12 months was a good time to buy things they want and need, down from 63% in the fourth quarter of 2018.
Indonesian consumer’s positive sentiment towards the economic stability significantly improved, whereby in Q1 2019 only 51% online consumers think that the country is in an economic recession. This figure drops from 57% in Q4 2018 and 61% in Q3 2018.
Saving and investing are still the main choices for consumers in allocating their spare cash after fulfilling their daily life needs. In the first quarter of 2019, 66% of consumers chose to allocate their spare cash for Saving, 47% chose to use it for vacation, and 44% chose to invest in stocks or mutual funds.
With regards to saving on household expenses, 43 percent of consumers chose to reduce spending on new clothes and delay upgrading new technology devices such as PCs, mobile devices etc. Meanwhile, 41 percent chose to reduce out-of-home entertainment.
In the first quarter of this year, 34% consumers stated their concern on political stability, increased highly from 24% in Q1 2019. Concerns about the economy became the next biggest concern for 31% of Indonesian consumers.
"The increasing consumer concerns about political stability in the first quarter of this year also seem to influence consumers' desire to shop.Towards the General Election, consumers anticipate the situation by one of which is being more careful in spending their money.” Agus Nurudin, Managing Director of Nielsen Indonesia, was quoted as saying.
Globally, Consumer Confidence Index is stable with only very slight decrease from 107 in the fourth quarter of 2018 to 106 in Q1 2019. Consumers tend to maintain spending, but are more cautious, in the midst of a slowing global economy.
According to The Conference Board® Global Consumer Confidence ™ Survey, in collaboration with Nielsen, the 10 most optimistic countries in the first quarter of 2019 are Philippines (133), India (132), Vietnam (129), Indonesia (125), Denmark ( 119), Malaysia (115), China (115), United Arab Emirates (113), Saudi Arabia (112), Thailand (111)
The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen. It was conducted in November 2018 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.