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Global & Indonesia Results 2016 Edelman Trust Barometer

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Page 1: Edelman Trust Barometer 2016 Indonesia

Global & Indonesia Results

2016 Edelman Trust Barometer

Page 2: Edelman Trust Barometer 2016 Indonesia

ACTIONS

WHAT DETERMINES OUR ACTIONS

Where do you buy your durians?

Page 3: Edelman Trust Barometer 2016 Indonesia

ACTIONS

We use trust every day to determine most of our daily decisions : Purchase Relationship Recommendations

TRUST MATTERS

We will go back to that we trust.

Page 4: Edelman Trust Barometer 2016 Indonesia

Reputation is a result of your past actions.

It is based on previous track record.

It is based on whether your promises have

been fulfilled.

Trust is forward looking, and must be earned.

Trust leads to people giving you a chance.

Trust can change bad reputation to good.

TRUST VS REPUTATION?

Page 5: Edelman Trust Barometer 2016 Indonesia

47

40

34

27

22

19

Indonesia – Trust Is A Business Imperative, Mirrors Global Outcomes

Source: 2016 Edelman Trust Barometer Q371-589. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. General Population, Indonesia, question asked of half the sample. Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. General Population, Indonesia, question asked of half the sample.

Percent who engage in each behavior based on trust

75

74

59

49

40

25

Behaviors for Distrusted Companies Behaviors for Trusted Companies

Refused to buy products/services

Criticized companies

Shared negative opinions

Disagreed with others

Paid more than wanted

Sold shares

Chose to buy products/services

Recommended them to a friend/colleague

Shared positive opinions online

Defended company

Paid more

Bought shares

most trusted content creators: #1

Friends and Family

most trusted media source: #1

Online Search Engines

General Population

5

Page 6: Edelman Trust Barometer 2016 Indonesia

Informed Public

‣ 8 years in 20+ markets

‣ Represents 15% of total global population

‣ 500 respondents in U.S. and China; 200 in all other countries

Must meet 4 criteria:

‣ Ages 25-64‣ College educated‣ In top 25% of household income per age group in each country‣ Report significant media consumption and engagement in business news

General Online Population

‣ 5 years in 25+ markets

‣ Ages 18+

‣ 1,150 respondents per country

Methodology

28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).

‣ 16 years of data

‣ 33,000+ respondents total

‣ All fieldwork was conducted between October 13th and November 16th, 2015

Online Survey in 28 Countries

6

Page 7: Edelman Trust Barometer 2016 Indonesia

1 State of Trust

Page 8: Edelman Trust Barometer 2016 Indonesia

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, 27-country global total.

8

51 48 45 41

55 5347 42

6357

51 48

67 6357

51

Global Trust RisingPercent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016

NGOs Business Media Government

+4 +6 +6 +3Informed

Public

General Population

2015 2016

+4 +5 +2 +1

Page 9: Edelman Trust Barometer 2016 Indonesia

9

6064 65

6366

5053 54

5155

2012 2013 2014 2015 2016

4648

4548

51

3841

3942 43

2012 2013 2014 2015 2016

54

58 5856

62

4750 49 49

53

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, 25-country global total.

Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016

53

57

5351

56

46

49 4846

49

NGOs

Government

Media

Business

Global Results Show Post-Recession HighsInformed Public

GeneralPopulation

Page 10: Edelman Trust Barometer 2016 Indonesia

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, Indonesia.

64 70 68 6557

7163 58

7784 80

726680

70 66

Indonesia Trust FallingPercent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016

Informed Public

General Population

NGOs Business Media Government

-11 -4 -10 -6

2015 2016

-7 +1 -5 -7

10

Page 11: Edelman Trust Barometer 2016 Indonesia

53

51

7377

66

4953

62 6457

2012 2013 2014 2015 2016

4047

53

7266

36

49 49

6558

2012 2013 2014 2015 2016

7874

82 8480

6369 68 70 71

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, Indonesia.

Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016

80 77 78 80

706873

69 6863

NGO’s

Government

Media

Business

Indonesia 5 Year Trend Shows Government & NGO Trust Up, But Still Behind Business & Media

Informed Public

GeneralPopulation

11

Page 12: Edelman Trust Barometer 2016 Indonesia

2 Trust Inequality

Page 13: Edelman Trust Barometer 2016 Indonesia

13

MassPopulation

Globally we see an Inversion of Influence

Authority & Influence

Influence

Authority

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and Mass Population, 28-country global total.

85% of population

48 Trust Index

15% of population

60 Trust IndexInformed

Public

Page 14: Edelman Trust Barometer 2016 Indonesia

14

MassPopulation

Same challenge for Indonesia, but, not as marked

Authority & Influence

Influence

Authority

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and Mass Population, Indonesia.

79% of population

62 Trust Index

21% of population

70 Trust IndexInformed

Public

Page 15: Edelman Trust Barometer 2016 Indonesia

15

Influence

The Inversion of Influence

Influence& Authority

Authority

Old Model

‣ Elites have access to more/better information

‣ Elites’ interests interconnected with those of mass

‣ Becoming an “elite” open to all

New Reality

‣ Peer-to-peer influence more powerful than top-down

‣ Increasing distrust among mass population

‣ Mass movements based on dissatisfaction and urgency

The Divide

‣ Democratization of information and more information

‣ High-profile revelations of greed and misbehavior

‣ Income inequality

Page 16: Edelman Trust Barometer 2016 Indonesia

16

50%

18 of 28 countries have a double-digit trust gap between high-income and low-income respondents

Trust Index:A Link to Income Inequality

Source: 2016 Edelman Trust Barometer Q13. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) General Population, 28-country global total, lower vs. upper quartile income in each country. [“CEOs are fairly paid relative to the rest of the workforce”]

GDP 5 = U.S., China, Japan, Germany, U.K.

Average trust in institutions, respondents in top quartile of income vs. respondents in bottom quartile of income in each country, ranked by the size of the gap between them

Glo

bal

GD

P 5

U.S

.

Fran

ce

Bra

zil

Indi

a

Net

herla

nds

Rus

sia

U.K

.

Italy

Sin

gapo

re

Japa

n

Hon

g K

ong

Turk

ey

Sw

eden

Spa

in

Pol

and

Col

ombi

a

Mex

ico

Irela

nd

Sou

th A

frica

UA

E

Arg

entin

a

Sou

th K

orea

Ger

man

y

Indo

nesi

a

Aus

tralia

Mal

aysi

a

Can

ada

Chi

na

6057

7164

78 78

68

49 52

6267

4945 46

50 53

40

7479

46

65 68

59

3844

80

5562

58

71

4642 40

35

5256

48

30 33

4550

32 31 3237

40

27

6269

36

5659

51

3037

73

4855 52

66

19192022262931

Low-income respondents

High-income respondents

Page 17: Edelman Trust Barometer 2016 Indonesia

17

A Global Phenomenon

Source: 2016 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs, 28-country global total.

Trust Index, Informed Public vs. Mass Population, 15 countries with double-digit trust gaps in 2016

CountryInformed

PublicMass

Population GapU.S. 64 45 19U.K. 57 40 17

France 55 39 16India 78 62 16

Australia 63 47 16Mexico 72 57 15

Italy 58 47 11China 82 71 11Brazil 58 48 10

Ireland 49 39 10Netherlands 62 52 10

Sweden 46 36 10S. Africa 54 44 10S. Korea 50 40 10

Singapore 72 62 10

Page 18: Edelman Trust Barometer 2016 Indonesia

18

In Indonesia, A Divide But Not Yet in Double Digits

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and Mass Population, Indonesia.

Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2016 Informed

Public

GeneralPublic

8pt Gap

10pt Gap

2012 2013 2014 2015 2016

6362

72

78

70

53

6061

65

62

Page 19: Edelman Trust Barometer 2016 Indonesia

Leadership in a Divided World:

An Opportunity for Business

3

Page 20: Edelman Trust Barometer 2016 Indonesia

20

Higher trust in business in 21 countries

Glob

al

GDP

5

Mex

ico

Indo

nesia

Colo

mbi

a

Indi

a

Braz

il

S. A

frica

Mal

aysia Italy

Cana

da

Neth

erl..

.

Arge

ntin

a

Aust

ralia

U.S.

Spai

n

Swed

en U.K.

Fran

ce

Japa

n

Irela

nd

Germ

any

Pola

nd

Turk

ey

Chin

a

UAE

Sing

apor

e

Hong

...

Russ

ia

S. K

orea

53 50

7671 70 69

6460 58 57 56 56 53 52 51 48 46 46 46 43 43 42

3842

70 6760

39 3833

4246

32

58

32

65

2116

39

30

5349

26

4539

26

45

36

24

3932

39

19

42

79 8074

45

53

35

50%

Global Comparison - Business vs. Government

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K.

Percent trust in business vs. government, 2016, ranked by trust in businessBusiness Government

General Population

Page 21: Edelman Trust Barometer 2016 Indonesia

Integrity 54 31 23Has Ethical Business Practices 51 31 24

Takes Responsible Actions To Address An Issue Or A Crisis 54 31 23

Has Transparent And Open Business Practices 55 31 24

Engagement 55 32 23Treats Employees Well 58 33 25

Listens To Customer Needs And Feedback 58 33 25

Places Customers Ahead Of Profits 55 31 24

Communicates Frequently And Honestly On The State Of Its Business 48 29 19

Products 49 34 15Offers High Quality Products Or Services 58 35 23

Is An Innovator Of New Products, Services Or Ideas 41 32 9

Purpose 43 28 15Works To Protect And Improve The Environment 50 30 20

Creates Programs That Positively Impact The Local Community 44 29 15

Addresses Society's Needs In Its Everyday Business 45 29 16

Partners With NGOs, Government And Third Parties To Address Societal Issues 34 24 10

Operations 37 28 9Has Highly-Regarded And Widely Admired Top Leadership 39 27 12

Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 36 27 9

Delivers Consistent Financial Returns To Investors 36 28 8

Global – Trust DriversCompany Importance vs. Performance

%Performance

%Importance Gap

General Population

21

Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Importance) Q114-129 Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performance) General Population, 28-country global total.

Page 22: Edelman Trust Barometer 2016 Indonesia

22

6357

51 48

67 6357

51

6369

62

47

51 48 45 41

55 53 4842

5561

56

41

NGOs Business Media Government

Globally, Business Most Trusted to Keep PacePercent trust, 2015 and 2016, and percent who trust each institution to keep up with the changing times, 2016

Informed Public

General Population

Trust2016

Trusted to keep pace

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust), Informed Public and General Population, 27-country global total. Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, 28-country global total.

Business in the lead

Trust2015

Page 23: Edelman Trust Barometer 2016 Indonesia

Industry 2012 2013 2014 2015 20165 yr.

Trend

Technology 76% 73% 75% 73% 74% 2

Food & Beverage 63% 63% 64% 63% 64% 1

Consumer Packaged Goods 57% 60% 61% 60% 61% 4

Telecommunications 58% 60% 61% 59% 60% 2

Automotive 62% 65% 69% 66% 60% 2

Energy 53% 57% 57% 56% 58% 5

Pharmaceutical 54% 54% 55% 54% 53% 1

Financial Services 43% 47% 48% 48% 51% 840%

45%

50%

55%

60%

65%

70%

75%

Sector Trends:Global Financial Services & Energy Rebounds

Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 25-country global total. *From 2012-2014, Pharma included as subsector(Q). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector.

Trust in each industry sector, 2012-2016

2012 2013 2014 2015 2016

General Population

23

Page 24: Edelman Trust Barometer 2016 Indonesia

Global Consensus – Business Must Lead to Solve Problems

Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, 27-country global total, question asked of half the sample..

80% agree

“A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”

up from 74% in 2015

General Population

24

Page 25: Edelman Trust Barometer 2016 Indonesia

25

66

8070 6662

7670

63

57

7163

5861

7267

60

NGOs Business Media Government

Indonesians Place Even More Trust in Business to Keep Pace

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, Indonesia..

Percent trust, and percent who trust each institution to keep up with the changing times, 2016

Informed Public

General Population

Trust Trusted to keep paceBusiness in the lead

Page 26: Edelman Trust Barometer 2016 Indonesia

55%

60%

65%

70%

75%

80%

85%

90%

Sector Trends:In Indonesia, CPG & Financial Services See Biggest Rebound

Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, Indonesia.

*From 2012-2014, Pharma included as subsector(Q61f-65f). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector.

Trust in each industry sector, 2012 - 2016

2012 2013 2014 2015 2016

Industry 2012 2013 2014 2015 20165 yr.

Trend

Technology 85% 87% 88% 86% 84% 1

Automotive 80% 84% 85% 85% 80% 0

Telecommunications 72% 83% 83% 82% 80% 8

Food & Beverage 68% 73% 74% 75% 75% 7

Financial Service 66% 74% 71% 72% 75% 9

Energy 66% 76% 74% 75% 74% 8

Consumer packaged goods 60% 70% 70% 71% 73% 13

Pharmaceutical 76%  77% 77% 77% 72% 4

General Population

26

Page 27: Edelman Trust Barometer 2016 Indonesia

Indonesians Also BelieveBusiness Must Lead to Solve Problems

Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, Indonesia, question asked of half the sample.

81% agree

“A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”

General Population

27

Page 28: Edelman Trust Barometer 2016 Indonesia

28

Access to education/training

Address income inequality

Access to healthcare

Protecting/improving the environment

Reducing poverty

Supporting human & civil rights

Modern infrastructure

E

E

P

H

Source: 2016 Edelman Trust Barometer Q561-573 Thinking about businesses in your country, how important is it that they play a role in solving each of the following societal issues? Please use a nine-point scale where one means that it is “not at all important” and nine means that it is “extremely important”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of one quarter the sample.

Societal Expectations VaryMost important issue for business to address in each country

Canada

Brazil

Germany

FranceChina

U.S.

Poland

Argentina

Sweden

Mexico

U.K.Ireland

Netherlands

Turkey

Singapore

Hong Kong

MalaysiaColombia

Japan

Australia

Russia

S. KoreaItaly

Spain

Indonesia

UAE

S. Africa

India

General Population

R

I

IE

E

R

H

E

EE

EE

P

P

E

H

P

E

H

H

H

E

E

E

E

E

P

I

H

E

I

Page 29: Edelman Trust Barometer 2016 Indonesia

Integrity 53 38 15Has Ethical Business Practices 55 38 17

Takes Responsible Actions To Address An Issue Or A Crisis 52 39 13

Has Transparent And Open Business Practices 52 38 14

Engagement 53 38 15Treats Employees Well 55 39 16

Listens To Customer Needs And Feedback 55 40 15

Places Customers Ahead Of Profits 50 38 12

Communicates Frequently And Honestly On The State Of Its Business 50 35 15

Products 50 41 9Offers High Quality Products Or Services 55 43 12Is An Innovator Of New Products, Services Or Ideas 45 39 6Purpose 46 35 11Works To Protect And Improve The Environment 52 38 14

Creates Programs That Positively Impact The Local Community 52 39 13

Addresses Society's Needs In Its Everyday Business 50 38 12

Partners With NGOs, Government And Third Parties To Address Societal Issues 31 26 5

Operations 35 32 3Has Highly-Regarded And Widely Admired Top Leadership 31 28 3

Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 37 33 4

Delivers Consistent Financial Returns To Investors 37 34 3

Indonesia - Trust Drivers

Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Importance) Q114-129 Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performance) General Population, Indonesia.

Company Importance vs. Performance%

Importance%

Performance Gap

General Population

29

Page 30: Edelman Trust Barometer 2016 Indonesia

Trusted Spokesperson,Media Channels

Leadership in a Divided World:4

Page 31: Edelman Trust Barometer 2016 Indonesia

Source: 2016 Edelman. Trust Barometer Q130-587. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 27-country global total.

31

63 64

57

5048

41

50

39

33

6764 63

53 5249 48

44

35

Globally, Peers & Employees More Credible than LeadersPercent who rate each spokesperson as extremely/very credible

2015 2016

+8

Technical expert

Academic expert

A person like

yourself

Financial industry analyst

Employee CEO NGO representative

Board of Directors

Government official/regulator

CEO credibilityincreased the most

General Population

+6

Page 32: Edelman Trust Barometer 2016 Indonesia

71

58

70

63

57

51

35

4239

69 6864

6057

48

37 3732

In Indonesia, Peers & Experts More Credible than Leaders

Source: 2016 Edelman. Trust Barometer Q130-587. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, Indonesia, question asked of half the sample.

Percent who rate each spokesperson as extremely/very credible2015 2016

+10

Technical Expert

A person like

yourself

Academic Expert

Financial Industry Analyst

CEO Board of Directors

Employee NGO representative

A person like yourself credibilityincreased the most

General Population

Government official/

regulator

32

Page 33: Edelman Trust Barometer 2016 Indonesia

33

42 42

31 32

45 46

37 35 3437

4541

24 23

36

18 1721

2932 31

41

2724

1922

15

2118 20

6 7 812

8 10

In Indonesia, CEO and Senior Execs Lead

Source: 2016 Edelman Trust Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611 A company’s business practices and handling of a crisis: Who do you trust MOST to provide you with credible and honest information about a company’s business practices, both positive and negative, and its handling of a crisis? Q612 Who do you trust MOST to provide you with credible and honest information about a company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613 Who do you trust MOST to provide you with credible and honest information about a company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 Who do you trust MOST to provide you with credible and honest information about a company’s innovation efforts and new product development? Q615 Who do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, Indonesia, question asked of half the sample.

Most trusted spokesperson to communicate each topic

Innovation effortsFinancial earnings & operational performance

Business practices/crisis handling

Treatment of employees/customer

Partnerships/Programs to address societal issues

Views on industry issues

General Population

Company CEO

Senior executive

Employee

Activist consumer

Academic

Media spokesperson

Page 34: Edelman Trust Barometer 2016 Indonesia

34

Search

TV

Social

Newspapers

Magazines

Blogs

71

69

67

45

32

28

Global Average - Influence of Peer-Driven Media

Source: 2016 Edelman Trust Barometer - How often do you read, view, click on or engage with the following types of content, media or information sources? Online search engines, such as Google… (Q285), Television news and information (Q287), Social networking sites, such as Facebook, LinkedIn, Instagram, Twitter, etc.(Net of Q278 Social Networking, Q279 Blogs, Q289 Online message boards, forums or newsgroups), articles in printed newspapers (Q284), articles in printed magazines(Q283), Blogs (Q279) (Several times a week+) General Population, 28-country global total, question asked of half the sample.

Percent who use each media source several times a week or more

2 of top 3 most-used sources of news and information are peer-

influenced media

General Population

Page 35: Edelman Trust Barometer 2016 Indonesia

2012 2013 2014 2015 2016

58

53

44

63

46

Global - Transformed Media Landscape

Source: 2016 Edelman Trust Barometer Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) General Population and Millennials, 25-country global total.

*From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.”**From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.”

Percent trust in each source for general news and information

Millennials even more trusting of digital media thangeneral population

Industry 2012 2013 2014 2015 2016

Search engines* 61 58 61 62 63

Traditional media 62 59 61 57 58

Online-only media** 46 44 47 45 53

Owned media 41 40 43 43 46

Social media 44 41 44 45 44

General Population

35

Millennials Gap

66 3

58 0

58 5

51 5

51 7

Page 36: Edelman Trust Barometer 2016 Indonesia

36

50%

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Emplo

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Compa

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don’t

use*

67 6153 46 39 46 40 34 30 26

7865 62 55 49 44 42 37 32 31

Global - Every Voice Matters

Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General Population, 27-country global total, question asked of half the sample.

* Asked as “Brands I don’t use” in 2015.

Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs. 2016

+11

General Population

+10

2015 2016

Page 37: Edelman Trust Barometer 2016 Indonesia

Indonesia - Influence of Peer-Driven Media

Source: 2016 Edelman Trust Barometer - How often do you read, view, click on or engage with the following types of content, media or information sources? Online search engines, such as Google… (Q285), Television news and information (Q287), Social networking sites, such as Facebook, LinkedIn, Instagram, Twitter, etc.(Net of Q278 Social Networking, Q279 Blogs, Q289 Online message boards, forums or newsgroups), articles in printed newspapers (Q284), articles in printed magazines(Q283), Blogs (Q279) (Several times a week+) General Population, Indonesia, question asked of half the sample.

Percent who use each media source several times a week or more

General Population

2 of top 3 most-used sources of news and information are peer-

influenced media

37

Social

Search

TV

Newspapers

Blogs

Magazines

85

79

72

53

53

49

Page 38: Edelman Trust Barometer 2016 Indonesia

2012 2013 2014 2015 2016

78

76

80 80

7575 75

77

72

7069 71

72

69 69

62

6769

67

65

6968

69

71

63

Indonesia - Transformed Media Landscape

Source: 2016 Edelman Trust Barometer Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) General Population and Millennials, Indonesia, question asked of half the sample.

Percent trust in each source for general news and information

*From 2012-2015, we included Online Search Engines as a media type. In 2016, we changed to Search Engines.**From 2012-2015, we included Hybrid as a media type. In 2016, we changed this over to Online-Only.

Industry Millenials Gap

Search Engines* 75% 0

Traditional Media 71% 1

Online-only Media** 69% 0

Owned media 68% 3

Social media 64% 1

General Population

38

Page 39: Edelman Trust Barometer 2016 Indonesia

39

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bran

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Electe

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Celebr

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74 7769 64

4457

6546

5545

79 73 72 69 68 64 6050 49

40

Indonesia - Every Voice Matters

Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? General Population, Indonesia, question asked of half the sample.

Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs. 2016 2015 2016

General Population

Page 40: Edelman Trust Barometer 2016 Indonesia

Building TrustLeadership in a Divided World:5

Page 41: Edelman Trust Barometer 2016 Indonesia

Integrity 53 36 17

Exhibits highly ethical behaviors 54 35 19

Takes responsible actions to address an issue or crisis 55 42 13

Behaves in a way that is transparent and open 51 33 18

Engagement 50 35 15Treats employees well 52 38 14

Listens to customer needs and feedback 52 38 14

Places customer ahead of profits 48 33 15

Communicates frequently and honestly on the state of their company 46 32 14

Products 50 43 7Places a premium on offering high quality products or services 53 44 9

Is focused on driving innovation and introducing new products/services/ideas 47 42 5

Purpose 45 34 11Is dedicated to protecting and improving the environment 51 34 17Ensures that the company creates programs that positively impact the local community in which it operates 50 42 8

Ensures that the company addresses society's needs in its everyday business 47 34 13Ensures that the company partners with NGOs, government and third parties to address societal issues 32 27 5

Operations 39 33 6Attracts and retains a highly-regarded and widely admired top leadership team 35 31 4

Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 39 30 9

Manages the company in a way that delivers consistent financial returns 42 37 5

Indonesia - Leaders Seen As Underperforming, But Across Different Attributes

Source: 2016 Edelman Trust Barometer. Q462-478 How

important is each of the following attributes to building your trust in CEOs? (Top 2 Box, Important) Q479-495 Please rate CEOs on

how well you think they are performing on each of the

following attributes. Use a 9-point scale where one means they are “performing extremely poorly”

and nine means they are “performing extremely well.” CEO questions use the same scales as

the business questions. (Top 2 Box, Performance) General

Population, Indonesia.

Importance vs. performance of 16 trust-building leadership attributesCompany

ImportanceBusiness

Performance Gap

General Population

41

Page 42: Edelman Trust Barometer 2016 Indonesia

Desired Leadership QualitiesCharacteristics that make a CEO trustworthy, percent who selected each as one of the top five in each region

42

cannot name any CEOs*

60% of global respondents

North AmericaHonest 59%

Ethical 48%

Competent 26%

Transparent 26%

Sincere 24%

Latin AmericaEthical 47%

Honest 44%

Competent 36%

Visionary 34%

Innovative 33%

EuropeHonest 53%

Competent 43%

Experienced 28%

Ethical 27%

Transparent 27%

APACHonest 39%

Visionary 35%

Decisive 31%

Ethical 31%

Competent 26%

General Population

Source: 2016 Edelman Trust Barometer Q515. Which of the following personal characteristics make a CEO trustworthy? Please select the five most important characteristics that make a CEO trustworthy. General Population, 28-country global total, question asked of half the sample.

* Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 10-country global total.

Page 43: Edelman Trust Barometer 2016 Indonesia

Their education and how it shaped them

Personal success story

The obstacles they have overcome

Their personal values

73%

79%

83%84%

Indonesia - Personal Values and History Matter

Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Important) General Population, 28-country global total, question asked of half the sample. [Media Engagement net = Q507 ‘Interviews with the media,’ and ‘Q512 ‘Sharing their views on a blog or on social media.’ Direct Engagement net = Q508 ‘Communications with employees,’ and ‘Participation in industry conferences.’] Q516-524. For you to trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Important) General Population, Indonesia, question asked of half the sample.

Percent who agree that each type of information is important in building trust in a CEO

General Population

43

Page 44: Edelman Trust Barometer 2016 Indonesia

44

Indonesia - CEO Focus Misplaced

Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs do too much lobbying,’ ‘Given that the average tenure of CEOs is just 4 years, CEOs aren’t in their role long enough to make a positive impact,’ (Top 4 Box, Agree) ‘CEOs are too focused on short-term financial results,’ ‘CEOs can be trust to create jobs’ ] (Bot 5 Box, Do not agree) General Population, Indonesia.

Percent who agree with each statement about CEOs

Focus on short-term financial results

Lobbying

Too Much

57%

66%

Job creation

Positive long-term impact

Not Enough

31%

61%

General Population

Page 45: Edelman Trust Barometer 2016 Indonesia

45

Indonesia - Purpose and Profits Matter

Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, Indonesia, question asked of half the sample.

Percent who agree that CEOs should be personally visible in discussing…

8 in 10Societal Issues

‣ Income inequality‣ Public policy discussions‣ Personal views on

societal issues

7 in 10Financial Results

General Population

Page 46: Edelman Trust Barometer 2016 Indonesia

Indonesia - Purpose Impacts TrustPercent who cite each as a reason for why their trust in business has increased or decreased

Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, Indonesia.

Reasons Trust in Business Has Increased

Reasons Trust in Business Has Decreased

Produces economic growth

Helps me and my family live a fulfilling life

Contributes to the greater good/Allows me to be a productive member of society

Lacks economic growth

Fails to contribute to the greater good

Does not help me and my family live a fulfilling life

63%

51%

50%

40%

34%

33%

General Population

46

Page 47: Edelman Trust Barometer 2016 Indonesia

47

Company NOT engaged in societal issues

Company engaged in societal issues

Indonesia - Employee Advocacy Increases With Societal Issue Engagement

Source: 2016 Edelman Trust Barometer Q527-529. Does your company and your company’s CEO get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Thinking about your current company, please indicate how much you agree with each of the following statements using a 9-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, Indonesia, question asked of half the sample.

Percent who agree with each statement, comparing those who work at companies/for CEOs involved in addressing broader societal issues vs. those who do not

Recommend company as an employer

Stay working for the company

Confidence in the future of the company

Recommend products and services to others

Motivated to perform

Committed to achieving our strategy

Do the best possible job for the customer

68

71

74

79

79

82

84

Impact of Company

Engagement

1

2

3

3

7

9

10

85

84

82

82

81

80

78

General Population

Page 48: Edelman Trust Barometer 2016 Indonesia

The Path Ahead6

Page 49: Edelman Trust Barometer 2016 Indonesia

47

40

34

27

22

19

Trust Is A Tangible Asset, It Is A Business Imperative

Source: 2016 Edelman Trust Barometer Q371-589. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. General Population, Indonesia, question asked of half the sample. Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. General Population, Indonesia, question asked of half the sample.

Percent who engage in each behavior based on trust

75

74

59

49

40

25

Behaviors for Distrusted Companies Behaviors for Trusted Companies

Refused to buy products/services

Criticized companies

Shared negative opinions

Disagreed with others

Paid more than wanted

Sold shares

Chose to buy products/services

Recommended them to a friend/colleague

Shared positive opinions online

Defended company

Paid more

Bought shares

most trusted content creators: #1

Friends and Family

most trusted media source: #1

Online Search Engines

General Population

49

Page 50: Edelman Trust Barometer 2016 Indonesia

Embracing the New Reality of Influence to Address Trust Inequality

50

‣ Create societal impact in addition to profits through purposeful action

‣ Express your values through honest, ethical engagement in which you share your story

‣ Ignite your most powerful advocate, your employees

‣ Engage cross channel to meet stakeholders, where they are, about what most interests/concerns them

Influence

AuthorityLeadership

Actions

ValuesEmployeeAdvocacy

Engagement

TRUST

Page 51: Edelman Trust Barometer 2016 Indonesia

For more information, contact: Raymond Siva

CEO Edelman [email protected] / +62 21 721 59000