joint european chambers’ business confidence index report (final) - 180418 rev.pdf · 22nd...
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Copyright ©2017 The Nielsen Company. Confidential and proprietary.
JOINT EUROPEAN
CHAMBERS’
BUSINESS
CONFIDENCE INDEX
2018
PRESS RELEASE
CREATED & MANAGED BY: COMMISSIONED BY: SURVEY PARTNER: CO-FUNDED BY: IN PARTNERSHIP WITH:
Copyright ©2017 The Nielsen Company. Confidential and proprietary.
RESEARCH METHODOLOGY
SELF-COMPLETION VIA
ONLINE SURVEY
QUESTIONNAIRE15 MINUTE
FIELDWORK CONDUCTED
22ND FEB’18 – 4TH APRIL’18
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PROFILE OF SURVEY
RESPONDENTS
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PROFILE OF RESPONDENTS
One-Fifth of the respondents come from Services (private) sectors
Reff: Q5| Base: 112
KEY BUSINESS SECTORS OF COMPANIES
20% 13% 13% 12% 7% 6%
CHEMICALS,
PHARMA,
COSMETICSINFRASTRUCTURE
& CONSTRUCTION
ENERGY &
NATURAL RESOURCESRETAIL /
CONSUMER
GOODS
BANKING,
FINANCE, &
INSURANCE
SERVICES
(PRIVATE)
#1
SAMPLE SIZE
112
112 respondents out of 1,001 e-mail contacts
Copyright ©2017 The Nielsen Company. Confidential and proprietary.
OUTLOOK TOWARDS THE
BUSINESS ENVIRONMENT
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RESPONDENTS ARE MORE POSITIVE TOWARDS THEIR
BUSINESS OUTLOOK IN INDONESIA
Reff: Q7 | Base: 112
4% 35% 62%
Negative Neutral Positive
-10% -2% +13%
: Significant increase/decrease with 95% confidence
#2
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE/ VERY POSITIVE
“How would you describe your outlook on your business in Indonesia over the next twelve months?”
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“How would you describe your outlook on the following business sectors in Indonesia over the next twelve months? “
INCREASED POSITIVE OUTLOOK TOWARDS HOSPITALITY/
TRAVEL & TOURISM, F&B AND AGRICULTURE/ FISHERY &
FORESTRY
Reff: Q8| Base: 112
77% 75%68%
52% 51%
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE/ VERY POSITIVE
HOSPITALITY, TRAVEL & TOURISM
INFRASTRUCTURE & CONSTRUCTION
FOOD & BEVERAGE
AGRICULTURE, FISHERY & FORESTRY
SERVICES (PRIVATE)
(-1%)(+13%)(+9%)
(+8%) (+3%)
(XX%) : DIFFERENCES FROM 2016/ 17 DATA
#3
: Significant increase/decrease with 95% confidence
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THE MAJORITY OF RESPONDENTS CONTINUE TO EXPECT
INCREASES IN REVENUE, PROFIT, AND WORKFORCE
Reff: Q19| Base: 112
TOP 2 BOX : THOSE WHO ANSWERED INCREASE/ SIGNIFICANT INCREASE
R E V E N U E P R O F I T W O R K F O R C E I N V E S T M E N T
66%
(-12%) (-5%) (-6%) (0%)
55% 53% 48%
#4
: Significant increase/decrease with 95% confidence
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28% OF RESPONDENTS HAVE EXPANSION PLANS – MORE
RESPONDENTS ARE INTERESTED IN EXPANDING OUTSIDE
JAVA
Reff: Q20, Q21 | Base: 112
28% CONSIDER TO EXPAND THEIR BUSINESS IN NEXT 12 MONTHS
33%KALIMANTAN
27%BALI NUSRA50%
EAST JAVA
38%SUMATRA
23%SULAWESI
22%PAPUA
17%WEST JAVA
2%CENTRAL
JAVA
(-3%)
(+16%)
(-10%)
(-6%)
(-3%)
(+6%)
(-8%)
(+2%)
(XX%) : DIFFERENCES FROM 2016/ 17 DATA
#5
: Significant increase/decrease with 95% confidence
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FACTORS AFFECTING
INDONESIA AND BUSINESS
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IN TERMS OF MACROECONOMIC FACTORS, RESPONDENTS
ARE INCREASINGLY POSITIVE ON INVESTMENT CLIMATE AND
REGULATORY/ LEGAL ENVIRONMENT
Reff: Q9| Base: 112
35%
27%
13%18%
9%
43%40%
14% 16%11%
48%
38%
19% 17%
11%
INVESTMENT CLIMATE FISCAL POLICY REGULATORY/LEGALENVIRONMENT
POLITICAL ENVIRONMENT LABOR POLICY
2015/2016 2016/2017 2017/2018
+5%
+5%
-2%
+1%0%
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE/ VERY POSITIVE
#6
: Significant increase/decrease with 95% confidence
TOP OUTLOOK STABLEINCREASING
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HOWEVER, POLITICAL AND SOCIAL INSTABILITY IS A CAUSE
OF INCREASING CONCERN
Reff: Q10| Base: 112
84% 82%76% 76%
59%
79% 79%71% 71% 68% 67%
BUREAUCRATICINEFFICIENCY/ RED TAPE
REGULATORYENVIRONMENT
CORRUPTION LACK OFINFRASTRUCTURE
POLITICAL & SOCIALSTABILITY
RELIGIOUS INFLUENCE
2016/2017 2017/2018
TOP CHALLENGES CHALLENGES 2017/ 18 vs. 2016/ 17
-5%
+9%-3%
-5% -5%
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED LIKELY/ VERY LIKELY
#7
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BUREAUCRATIC INEFFICIENCY IS THE BIGGEST CHALLENGE
WHILE POLITICAL & SOCIAL STABILITY IS STILL CONSIDERED
TO BE AN INCREASING CONCERN IN BUSINESS
Reff: Q11| Base: 112
71% 69%
32%
51%57%
70% 72%
47% 45% 47% 49%
77%73% 71%
59%52% 50%
43%
BUREAUCRATICINEFFICIENCY/ RED
TAPE
REGULATORYENVIRONMENT
CUSTOM AND IMPORTREGULATION
POLITICAL & SOCIALSTABILITY
PROTECTIONISM LACK OF SKILLEDLABOR
LABOR POLICY
2015/2016 2016/2017 2017/2018
TOP CHALLENGES CHALLENGES 2017/ 18 vs. PREVIOUS YEARSINCREASING
CONCERN
+1%+7%
+3%-6%
+7%+12%
#8
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED LIKELY/ VERY LIKELY
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NEVERTHELESS, 77% OF RESPONDENTS ARE CONSIDERING
FURTHER INVESTMENT IN INDONESIA
Reff: Q6| Base: 112
23% 37% 40%
No Maybe Yes
-4% +5%-1%
#9
: Significant increase/decrease with 95% confidence
“Is your company considering any major investments in Indonesia in the next 2 years?”
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GOVERNMENT POLICY
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PERCEPTIONS OF THE GOVERNMENT ATTITUDE REMAINS
SIMILAR TO 2016/ 2017
Reff: Q13| Base: 112
21%
29%35%
40%
54%
Effective ImplementationClear And Concise
Explanations Provided
Pro-Business DecisionCoordination With Other
Ministries
Consultation With
Business
-1%
-3%-1%
+3%-5%
#10
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED WILL IMPROVE/ WILL IMPROVE A LOT
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EXPECTATIONS OF THE GOVERNMENT ACTIONS REMAINS
SIMILAR TO 2016/ 2017
Reff: Q14| Base: 112
56%
48%
60%55%58%
Effective ImplementationClear And Concise
Explanations Provided
Pro-Business DecisionCoordination With Other
Ministries
Consultation With
Business
+7% +4%+3%
- 5%+2%
#11
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE IMPACT/ VERY POSITIVE IMPACT
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29% OF THE RESPONDENTS ACTUALLY FEEL THE IMPACT OF
THE ECONOMIC STIMULUS PACKAGES
Reff: Q24| Base: 112
33% 38% 29%
Not Affecting Neutral Affecting
+3% -4%+1%
#12
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED SOMEWHAT AFFECTING/ AFFECTING A LOT
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2017/2018 INDEX SHOWS A SIGNIFICANT CHANGE IN
SENTIMENT FROM PREVIOUS YEARS
Reff: Q7 | Base: 112
71%
50% 49%
62%
2014/ 2015 2015/ 2016 2016/ 2017 2017/ 2018
#13
: Significant increase/decrease with 95% confidence
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SUMMARY
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SUMMARY
BUSINESS OUTLOOK FACTORS AFFECTING BUSINESS
BUSINESS CONFIDENCEINDEX
GOVERNMENT POLICY
• Business outlook has
improved as compared to last
year
• The outlook for Hospitality/
Travel, Infrastructure and
Food & Beverage is
particularly positive
• Business expansion is
targeting East Java,
Sumatra and Kalimantan
• While Macroeconomic
outlook still shows positive
trend, political environment
remains a concern
• There is a rise in concern
around political & social
stability and main challenges
remain bureaucratic
inefficiency and regulatory
environment. Custom/
import regulations present a
new challenge.
• Business Confidence Index
has seen its first rise in the
last 4 years
• Opinion towards
Government Policy &
Regulations remains similar
• Perceptions of the
Government Action remains
positive
• Two thirds of the respondents
remain unimpacted by the
revamped economic
stimulus packages
#14
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APPENDIX
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PERCEPTIONS TOWARDS CHAMBERS OF COMMERCE REMAIN
EXTREMELY POSITIVE
Reff: Q26 | Base: 112
1% 1% 1%
35% 35%39%
64% 64% 60%
2015/2016 2016/2017 2017/2018
Negative impact Neutral Positive impact
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE IMPACT/ VERY POSITIVE IMPACT
#15
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47%55%
32%
52%
37%
27%
66%58%
46% 45%39% 37%
INFRASTRUCTUREDEVELOPMENT
BUREAUCRATICEFFICIENCY
COUNTER TERRORISM FIGHTING CORRUPTION REGULATORYENVIRONMENT
POLITICAL & SOCIALSTABILITY
2016/2017 2017/2018
EXTENT TO WHICH INDONESIA HAS MADE POSITIVE
PROGRESS
Reff: Q12| Base: 112
TOP PROGRESSION
+19%
-7%
+3%
+2% +10%+14%
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED IMPROVED/ IMPROVED A LOT
#16
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RESPONDENTS EXPECT IMPROVEMENTS IN INFRASTRUCTURE
OVER THE NEXT 12 MONTHS
Reff: Q16| Base: 112
59% 59%
45% 48%
28%
76%68%
62%56%
41%
ROADS AIR TRANSPORT RAILWAYS COMMUNICATION UTILITIES
2016/2017 2017/2018
+9%
+8%
+17%
+17%
+13%
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED WILL IMPROVE/ WILL IMPROVE A LOT
#17
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IMPROVEMENTS TO ROADS WILL IMPACT BUSINESS THE MOST
Reff: Q17| Base: 112
54% 52%
39%
61%
46%
65%
53%
38%
63%
46%
ROADS AIR TRANSPORT RAILWAYS COMMUNICATION UTILITIES
2016/2017 2017/2018
+1%+2%+11%
-1%+0%
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE IMPACT/ VERY POSITIVE IMPACT
#18
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LABOR ISSUE OUTLOOK DESCRIPTION
Reff: Q18| Base: 112
26%
15%18%
5%10%
27%
19%23% 21%
17%
IMPROVEMENT IN THEAVAILABILITY OF TALENT POOL
IMPROVEMENT IN HONESTY &INTEGRITY OF LABOR
INCREASE IN THE COSTS OFSKILLED LABOR
RESTRICTIONS ONEMPLOYMENT OF EXPATRIATES
HIGH RATE OF STAFFTURNOVER
2016/2017 2017/2018
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED WILL IMPROVE/ WILL IMPROVE A LOT
+1%
+4%+5%
+16%+7%
#19
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ANTICIPATION TOWARDS ASEAN ECONOMIC COMMUNITY
(AEC)
Reff: Q23| Base: 112
47% 45%40% 37%
22%
56%53% 51%
46%
34%
SIMPLIFICATION OF CUSTOMPROCEDURES
HARMONIZATION OFSTANDARDS TECHNICAL
REGULATIONS
TRANSPARENCY OF NON-TARIFF BARRIERS
ENHANCEMENT OFCOMPETITIVENESS AND
DYNAMISM OF ASEAN SMES
INVESTMENT PROTECTION
2016/2017 2017/2018
+9% +8% +11% +9%+12%
: Significant increase/decrease with 95% confidence
TOP 2 BOX : THOSE WHO ANSWERED POSITIVE IMPACT/ VERY POSITIVE IMPACT
#20
AN UNCOMMON SENSE OF THE CONSUMER
With additional appreciation to: Jenny Simmons – BritCham Board and Marketing Manager at British School Jakarta,
Colin G Harvey – BritCham Board (retired) and a Partner at HCG,KADIN and BKPM