Consumer Confidence Index Drops Due to Yogya Earthquake

Thursday, 20 July, 2006 | 20:16 WIB

Tempo Interactive, Jakarta: The consumer confidence index plunged again in June, after the earthquakes in Yogyakarta and Central Java.

Based on a survey by the Danareksa Research Institute, the consumer confidence index dropped 0.9 percent to 84.7, with the fall of the Central Java index by 8.7 percent.

However, according to Purbaya Yudhi Sadewa, Chief Economist of the Danareksa Research Institute, once the situation following the natural disaster beings to recover, the consumer confidence index will start to improve.

He believes that by viewing the prospect, the declining trend in Central Java will probably not last for long.

“There are indications that the negative effect on the local economy will only last for a few days and the economic activities will return to normal,” said Purbaya yesterday (19/7) in a press release.

Grace

just a blip in the overall picture. Consumer confidence is trending sharply upward, and will continue to do so with the occasional blips due to quakes and other political shocks now and again. All the indicators for the next few months and years are positive and moving up, so I'd not put too much into this.

you're probably right, but indonesia seems to be taking a battering from these series natural disasters, never mind the disasters it brings on itself.

Indonesian economy always looks like a Drexel Junk Bond issue. It has high ceilings but no foundations….