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Indonesia's Consumer Confidence Down

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Indonesia's consumer confidence index fell by 5.7 points to 90.06 in December, a survey of the central bank said at its website on Wednesday.

The index below 100 percent indicates that the consumers are pessimistic.

The bank also predicted the economy would grow by 6 percent in 2008, indicating that the growth slowed in the fourth quarter in the year. The growth rates at the first, second and third quarters stood respectively at 6.3 percent, 6.4 percent and 6.1 percent.

The global financial crisis has cut demand and slumped prices of Indonesia's export commodities, hitting sectors of textile coal, palm oil, rubber and fabricated goods, which then led to massive layoffs. Indonesia is the world's biggest palm oil producer and the world's second biggest rubber maker.

According to the survey, consumers are concerned about job losses amid the global economic crisis.

Last year the number of fired workers mounted to 40,000 and it would be much higher this year as the global recession impact will deepen. Besides, hundreds of thousands others Indonesian migrant workers are forecast to face layoff this year.

Indonesia has been struggling to boost people's purchasing power as it has shifted focus on huge domestic market with over 230 million population.

The government has three times reduced oil prices since December and allocated over US$6.43 billion stimulus package this year amid the good performance of inflation rates.

The country's central bank has also supported to ease inflation and spur real sector by cutting a half point rate on December 7 to 8.75 percent.

(Xinhua News Agency January 15, 2009)