Indonesian consumers more optimistic on economy, fret over p

Reuters - Indonesia's consumers were more optimistic in March, bolstered by expectations that the economy will improve in the next six months, a Bank Indonesia survey showed on Friday.

The consumer confidence index rose to 118.2, against the previous reading of 116.2. A reading above 100 indicates that consumers in general are optimistics.

Expectations improved due to more jobs, better business conditions and higher incomes, in line with the start of government construction projects.

Consumers expect price pressures to increase in the next three months, up to June, due to rising demand ahead of the fasting month of Ramadan.

They were also concerned about the political and economic outlook after presidential elections in July and the possibility of further hikes in fuel prices and electricity tariffs.

                                                 MAR    FEB     JAN
 Consumer confidence index   118.2   116.2   116.7
 Present situation index           112.5   111.7   110.9
 Expectation index                   123.9   120.7   122.4
 
    CONTEXT
    - Annual inflation in March eased to 7.32 percent, from 7.75 percent the previous month, on declining food prices.
    - A Reuters poll of 15 analysts estimated Bank Indonesia will likely keep its benchmark reference rata at 7.50 percent for the 5th consecutive month on Tuesday.
    - Southeast Asia's biggest economy will hold its legislative election on Wednesday, followed by the presidential election in July.
    - Bank Indonesia sees inflation slowing to 3.5-5.5 percent this year, against 8.38 percent in 2013.