31 May 2011
Jakarta, Indonesia

Indonesia is the third most optimistic nations in the world and second in Asia Pacific, according to the latest Global Online Consumer Confidence Survey. Indonesia posted a flat confidence index in the first quarter of 2011 with 116, but still positioned itself among the top 10 most confident nations in the world after India (131) and South Africa (118).

 “The consistent positivity remains in Indonesia because the government continues with fuel subsidies despite increasing world oil prices thereby protecting consumers from inflationary pressures,” said Catherine Eddy, Managing Director of Nielsen in Indonesia.

Consumer Confidence Index levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Nielsen polled over 28,000 online consumers (more than 9,500 in Asia Pacific and 500 in Indonesia) in 51 countries about their outlook on jobs, the economy and readiness to spend. Key highlights from the Nielsen’s study in Indonesia as discussed below:

Half of online consumers in Indonesia are ready to spend in the next 12 months

Fifty-three percent of online consumers in Indonesia said that the next 12 months would be either a good or excellent time to purchase the things they want and need at the moment.  This is an increase of 6 percentage points from Q4 2010. Eight in ten consumers also described their state of personal finance to be excellent or good in 2011.

 “At the end of 2010, we saw that consumers withheld their spending with the speculation around the potential for increases in the price of fuel. So at the beginning of this year when consumers saw that government had no immediate plans to  increase fuel prices, consumers felt more confident to spend,” said Catherine.

“And as long as inflation remains relatively stable, we will continue to see good growth in Indonesia’s consumer sector,” added Catherine.

Nearly 60 percent of Indonesia consumers think that Indonesia is in economic recession

Despite the high optimism that Indonesian consumers have portrayed, nearly 60 percent of consumers in Indonesia still think that we are in recession, up 3 points from Q4 2010. Compared to its neighboring countries in Southeast Asia, Indonesian consumer opinion is in line with that of  consumers in Thailand (67%), Philippines (65%), and Vietnam (61%) when judging their countries economic performance.

When asked whether the countries will be out of recession in the next 12 months, Indonesian netizens are more pessimistic about the ability of the economy to bounce back with only 26 percent of consumers believing Indonesia will be out of this crisis at the end of 2011.

Savings remain top priority for online consumers in Indonesia

As with most Asia Pacific countries, the number of consumers with no spare cash in Indonesia in Q1 2011 is relatively low with only two percent of online consumers claimed they have no spare cash. This number stood unchanged from the previous quarter.

Savings remain a top priority for majority of consumers around the world. However seven in ten consumers in Indonesia will put their money into savings, compare to only 47 percent for global consumers and 62 percent for Asia Pacific. Singaporeans also recorded a high percentage for savings with 74 percent.

After savings, Indonesian netizens will spend their money for holidays (36%), investing in stock (31%), new technology products (29%), and out of home entertainment (28%).

“Although we have seen a slight decline in the number of consumers who put their spare cash into savings, the high level of savers in Asia is an indication that consumers in Indonesia and the region are still generally cautious when it comes to spending,” Catherine said.

The Economy is still the consumers’ biggest concern for Indonesia while increasing Fuel Prices became a growing concern in Q1 2011

While the majority of Asia Pacific countries are worried about increasing food prices in first quarter of 2011, Indonesian consumers are still worried about the economy (12% vs 19% in Q4 2010) and work/life balance (11% vs 14% in Q4 2010).

“Consumers in Indonesia are still generally concerned about the economy like most markets despite the economic stability we have enjoyed in the past few years.  However, the on-going speculation of a hike in price has driven a 9 point increase in consumer concern over increases in the price of fuel,” said Catherine.

Only four percent of online consumers in Indonesia worry about increases in food prices.  Generally consumers are still worried about maintaining work/life balance and the welfare of children and parents (10%).

About the Nielsen Global Online Survey

The Nielsen Global Online Survey was conducted between March 23 and April 12, 2011 and polled more than 28,000 consumers in 51 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%.This Nielsen survey is based on the behavior of respondents with online access only.Internet penetration rates vary by country.Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion.

About The Nielsen Company

The Nielsen Company (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related assets. The company has a presence in approximately 100 countries, with headquarters in New York, USA. For more information on The Nielsen Company, visit www.nielsen.com.