Indonesia's business tendency index (BTI) and consumer tendency index (CTI) improved in the third quarter of 2015.

Central Statistics Agency'€™s (BPS) deputy head of balance and statistics analysis, Kecuk Suhariyanto, said this improvement indicated that businessmen in Indonesia were more optimistic.

The BTI recorded 106.04 in the third quarter of 2015, a slight improvement from the 105.46 recorded in the previous quarter.

"Business conditions in the third quarter of 2015 improved due to an increase in revenues, production capacity and hours of working," said Kecuk in Jakarta on Thursday.

However, the agency predicted the index would decrease in the fourth quarter to 103.72. He noted that agriculture, forestry and fisheries would be the most pessimistic sectors in the fourth quarter. "This is because the harvest season will be over in the fourth quarter," he added.

Meanwhile, the CTI in the third quarter of 2015 was 109, slightly more than the 105.22 recorded in the previous quarter. This change indicates that the economic condition of consumers improved compared to the second quarter of 2015.

"There was an increase in household income. Furthermore, the low impact of inflation on consumption increased consumption in the third quarter," he said.

The agency predicts that consumer optimism will drop in the next quarter to 102.57.

Consumers in most parts of Sumatra, such as Riau, Jambi and South Sumatra, will be more pessimistic due to the prolonged forest fires in their areas. "Riau is the most pessimistic because it is the area most adversely impacted by the haze," said Kecuk. (bbn)

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