Indonesians increasingly optimistic on economy in May

Bareksa.com - Indonesia's consumers were more optimistic in May than the previous month about the country's economy, a Bank Indonesia survey showed on Wednesday.

The survey's consumer confidence index rose to 116.9, against the previous reading of 113.9. A reading above 100 indicates that consumers in general are optimistic.

The central bank has an "expectation index", which also rose in May.  It said that consumers have higher hopes that in the next six months,  banks will increase their lending and the country will start to see improvements in infrastructure.

In July, Indonesians will elect their president for the next five years. The central bank made no mention of the election campaign and any impact on consumers.

But it said consumers expect price pressures to increase in the next six months, and they are concerned about supply of some goods and a decrease of government subsidies.                      

                                                    MAY    APR     MAR
 Consumer confidence index           116.9   113.9   118.2
 Present situation index                  112.2   108.9   112.5
 Expectation index                         121.5   118.9   123.9  

(Source : Reuters)