Indonesia June consumer confidence index soars to 114.4

Indonesia reached a 5-month high despite 8% slip in May retail sales growth.

According to OCBC, the domestic economy remains on decent footing for now, as consumer confidence index reached a 5-month high of 114.4 in June, even if retail sales growth has slipped to 8% yoy in May from 11.7% previously.

Here's more from OCBC:

There is also lesser risk from inflationary pressures going forward, as falling commodity prices have prompted inflation to remain relatively stable at 4.6% in June. Near-term risk for the economy stems from a deterioration in its trade balance.

Exports growth slowed further to -8.6% yoy in May and the trade balance was in the deficit for a second consecutive month. This may be a potential risk to Indonesia’s external liquidity in the short term, and may undershoot the recently revised down 1-2% exports growth target for 2012.