Presidential candidates to improve Indonesia transport

Both Prabowo Subianto and Joko Widodo of the Indonesian presidential election have pledged to spend big on transport links including roads, railways and ports – Benefiting retailers who struggle to reach customers within remote regions of the island nation. Whilst consumer companies within the fourth most populous country of the world, trailed builders as the benchmark stock index elevated by 18% this year, the Indonesia Food and Beverage Producers Association claim sales could be as much as 50% higher, if only access to rural areas were improved.

Aberdeen Asset Management, which oversees approximately $541billion, view consumer companies in Indonesia as a way of indirectly playing the infrastructure. This is as they claim any pro-infrastructure policy would make the economy more competitive, benefiting consumers.

London based research firm, Kantar Worldpanel forecasts Indonesia to gain 80 million new consumers over the upcoming 15 years. This is as Indonesia’s economy is forecasted to grow by 5.7% each year through 2016.

Consumer confidence in economy!

Bank Indonesia's consumer confidence survey revealed Indonesian consumers were more optimistic during May 2014 compared to its preceding month. Consumer confidence in South East Asia's major economy increased to 116.90 during May from 113.90 during April. The confidence indicates that Indonesian consumers are more optimistic about the current Indonesian economy condition as well as conditions over the upcoming six months. The result during May was also higher compared to the same period during 2013 (at 112.8).

The survey revealed that in 12 out of 18 Indonesian cities, consumers showed more optimism in regards to the economy. The highest increase was found within the Bandung (9.3) and Bandar Lampung (10.2) cities.

Based upon spending, consumers who spend at least IDR5million (USD$423) per month, tended to show the largest growth in confidence.