Indonesian consumers less confident.

Indonesia's Consumer Confidence Index (CCI) declined 0.2 percent in June 2007 after gaining 1.3 percent in May 2007, according to the Jakarta based Danareksa Research Institute (DRI), an independent research firm. The CCI stands at 81.6 points. Indonesia's CCI counts scores below 100 as reflecting consumer pessimism. Conversely, scores above 100 mean that consumers are feeling optimistic.

One of the reasons for the May 2007 drop is Indonesia's jobs picture. "The lack of any improvement in labor market conditions continues to dampen consumers' spirits," said DRI. When asked about their current finances, respondents pushed the Present Situations Index (PSI) down 1.5 percent from 60.2 points in May 2007 to 59.3 points in June 2007. DRI adds, "Yet despite this decline, consumers remain cautiously optimistic in regard to the outlook over the next six months: the Expectations Index (EI) rose slightly by 0.4% to 98.3 from 97.8 in the previous [May 2007] survey."

Cooking oil prices have been increasing strongly in Indonesia, and consumers are reacting negatively. DRI attributes the decline in consumer confidence in June 2007 mostly to the government's inability to get cooking oil prices under control. In addition, consumers are also dealing with the scarcity of kerosene, the major fuel used for cooking. Problems with food and fuel also reduced the likelihood of durables purchases.

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