trust 2014 indonesia and global
TRANSCRIPT
2014 EDELMAN TRUST
BAROMETER GLOBAL RESULTS
2
GLOBAL
ONLINE SURVEY
IN 27 COUNTRIES
• 33,000 respondents
• 6 years in 20+ markets
• 9 years in 10+ markets
GENERAL
POPULATION
• 1000 respondents per
country surveyed
• Ages 18+
• 3 years in 25+ markets
INFORMED
PUBLICS
• 500 respondents in U.S. and
China & 200 in other countries
• 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 and public
policy
• 14 years of data
EDELMAN’S 14TH ANNUAL SURVEY
2014 BUSINESS TO LEAD THE DEBATE FOR CHANGE
2013 CRISIS OF LEADERSHIP
2012 FALL OF GOVERNMENT
2011 RISE OF AUTHORITY FIGURES
2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS
2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST
2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS
2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA
2006 “A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON
2005 TRUST SHIFTS FROM “AUTHORITIES” TO PEERS
2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT
2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING
2002 FALL OF THE CELEBRITY CEO
2001 RISING INFLUENCE OF NGOS 3
EDELMAN TRUST BAROMETER IN
RETROSPECT
GLOBAL 54
UAE 79
China 79
Singapore 73
Indonesia 72
India 69
Malaysia 65
Canada 60
Netherlands 60
Mexico 59
Hong Kong 59
Australia 58
Brazil 57
Germany 57
Argentina 53
U.K. 52
Sweden 51
S. Korea 51
S. Africa 50
U.S. 49
France 46
Japan 44
Italy 43
Turkey 41
Spain 39
Ireland 39
Russia 37
Poland 35
GLOBAL 57
China 80
Singapore 76
India 71
Mexico 68
Hong Kong 67
UAE 66
Malaysia 64
Canada 62
Indonesia 62
U.S. 59
Netherlands 59
Brazil 55
Germany 55
France 54
Sweden 54
U.K. 53
Italy 51
Australia 50
Poland 48
S. Korea 47
Ireland 46
Argentina 45
Spain 42
Turkey 42
Japan 41
Russia 36 Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE).
4
BIG TRUST
INCREASES FROM
2013
UAE +13 pts.
Indonesia +10 pts. Australia + 8 pts.
Argentina + 8 pts.
THE TRUST INDEX: SLIGHT DECLINE IN TRUST OVER THE PAST YEAR WITH STRONG REGIONAL VARIATIONS –
LEVELS OF TRUST IN INDONESIA HAVE INCREASED
2013 2014
BIG TRUST
DECREASES FROM
2013
Poland -13 pts.
U.S. -10 pts.
Mexico -9 pts.
TRU
STE
RS
N
EU
TRA
L D
ISTR
US
TER
S
A +10 pts. trust rise
for Indonesia since
last year
2014
TRU
STE
RS
N
EU
TRA
L D
ISTR
US
TER
S
GLOBAL TRUST
DIFFERENCE OF
9 points
MARKETS WITH
LARGEST PERCEPTION
GAPS:
UAE (15 pts.)
Australia (14 pts.)
Germany (13 pts.)
France (13 pts.)
Sweden (13 pts.)
GLOBAL 47
China 67
UAE 64
Singapore 64
Indonesia 62
India 61
Malaysia 57
Canada 54
Mexico 53
Netherlands 51
Hong Kong 50
Brazil 49
Argentina 49
Australia 44
Germany 44
S. Korea 43
U.K. 42
S. Africa 42
U.S. 42
Italy 41
Japan 40
Turkey 39
Sweden 38
Spain 36
Ireland 35
France 33
Poland 32
Russia 31
Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 27-country global total.
5
SUBSTANTIALLY LOWER TRUST AMONG GENERAL PUBLIC THAN INFORMED PUBLIC – A 10 POINT GAP IN INDONESIA ALSO
2014 GLOBAL 56
UAE 79
China 79
Singapore 73
Indonesia 72
India 69
Malaysia 65
Canada 60
Netherlands 60
Mexico 59
Hong Kong 59
Australia 58
Brazil 57
Germany 57
Argentina 53
U.K. 52
Sweden 51
S. Korea 51
S. Africa 50
U.S. 49
France 46
Japan 44
Italy 43
Turkey 41
Spain 39
Ireland 39
Russia 37
Poland 35
Why the big
global
difference
from informed
to general
public?
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 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 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics in 20-country global total.
NGOS BUSINESS
GOVERNMENT
TRUST IN BUSINESS AND NGOS REMAINS STABLE, TRUST IN GOVERNMENT AND MEDIA
DECREASES
6
TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014
TOTAL TRUST
TRUST A GREAT DEAL
MEDIA
63% 64%
22% 23%
2013 2014
#1
57% 52%
17% 16%
2013 2014
#3
58% 58%
17% 16%
2013 2014
#2
48% 44%
16% 15%
2013 2014
#4
50%
TRUST IN GOVERNMENT, 2013 VS. 2014
7
SIGNIFICANT TRUST DECLINE FOR GOVERNMENT; LARGEST TRUST DROPS IN U.S., FRANCE
AND HONG KONG
Q11-14. [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 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) Informed Publics, 20-country global total.
N.A.
LOWER/EQUAL TRUST IN 17 COUNTRIES HIGHER TRUST IN 9 COUNTRIES
2013
2014
48%
73%
43%
32%
47%
19%
40%
33%
48% 44%
29%
20%
62% 65%
57%
47%
81%
60% 58%
82%
35%
30% 32%
41%
53% 49%
63%
44%
17%
88%
56%
45%
53%
23%
43%
34%
49% 45%
27%
18%
60% 63%
53%
42%
76%
54%
51%
75%
24%
19% 21%
28%
37%
32%
45%
= HISTORIC LOW GLOBAL HISTORIC LOW (2009) = 43%
TRUST IN BUSINESS, 2013 VS. 2014
8
TRUST IN BUSINESS STABILIZES; WESTERN SKEPTICISM ENTRENCHED, DEVELOPING
MARKETS SOAR – INDONESIA SEES HIGHER TRUST
Q11-14. [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 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) Informed Publics, 20-country global total.
N.A.
58%
65%
48% 49%
48%
63%
31%
74%
64%
40%
58%
74%
52%
56%
44%
81%
44% 47%
62%
44%
77%
61%
58%
82%
60%
56% 56% 58%
63%
82%
59% 58% 57%
72%
39%
82%
70%
45%
62%
77%
53% 56%
43%
79%
41% 43%
58%
38%
71%
54%
51%
73%
49%
45% 45%
LOWER/EQUAL TRUST IN 15 COUNTRIES HIGHER TRUST IN 12 COUNTRIES
2013
2014
50%
50%
Q11-14. [BUSINESS IN GENERAL & GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 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) Informed Publics, 20-country global total.
TRUST IN BUSINESS VS. GOVERNMENT
GOVERNMENT
9
BUSINESS
GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST IN BUSINESS AND
GOVERNMENT
HIGHER TRUST
IN GOVERNMENT HIGHER TRUST IN BUSINESS
58%
63%
73%
70%
58%
82%
45%
79%
45%
58%
38% 41%
45%
72%
56%
62%
43%
53%
57%
49%
59%
77%
43%
71%
54%
39%
82%
51%
44%
17%
28%
34%
23%
53%
19%
53%
24%
37%
18%
21%
27%
54%
42%
51%
32%
45%
49%
45%
56%
76%
43%
75%
60%
45%
88%
63%
20+ PT. HIGHER TRUST IN BUSINESS
29 POINT GAP IN INDONESIA
50%
54% 56%
53%
58% 58%
43%
47%
52%
43%
48% 44%
30%
40%
50%
60%
70%
2009 2010 2011 2012 2013 2014
BUSINESS GOVERNMENT
14 point trust gap
between
business
and
government
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (4 Box, Trust) Informed Publics in 20-country global total.
HISTORIC GAP BETWEEN BUSINESS AND GOVERNMENT TRUST GLOBAL TRUST IN GOVERNMENT AND BUSINESS SINCE 2009
10
11
Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a 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) Informed Publics, 27-country global total.
FAMILY-OWNED AND SMALL- AND MEDIUM-SIZED BUSINESSES HAVE A TRUST ADVANTAGE
EXCEPT IN ASIA TRUST IN DIFFERENT TYPES OF BUSINESS – BY REGION
71%
62%
76%
85%
73% 68%
65% 68%
78% 81%
63%
74%
48%
60%
91%
62% 62% 57%
63%
87%
61%
73%
47% 45%
90%
54%
63%
47% 46%
68%
GLOBAL APAC EU NORTH AMERICA INDONESIA
FAMILY-OWNED SMALL- & MEDIUM-SIZED PUBLICLY-TRADED PRIVATELY-HELD BIG BUSINESS STATE-OWNED
ASIA TRUSTS PUBLICALLY TRADED BIG FIRMS; WARY OF FAMILY OWNED
OLIGARCHIES
INDONESIA IS THE SAME; PUBLICALLY TRADED AND BIG BUSINESS IS MOST
TRUSTED
50%
LOWER/EQUAL TRUST IN 21 COUNTRIES HIGHER TRUST
IN 5 COUNTRIES
TRUST IN MEDIA, 2013 VS. 2014
12
GLOBAL TRUST IN MEDIA REVERTS TO 2010 LEVELS; NEARLY 80% OF COUNTRIES
REPORT TRUSTING MEDIA LESS OVER THE LAST YEAR
Q11-14. [MEDIA IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 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) Informed Publics, 20-country global total.
N.A.
2013
2014
57% 59%
47%
42%
57%
77%
70%
49%
60%
81%
47%
43%
61%
66%
38%
66% 68%
47%
61%
26%
45%
79%
51%
54%
50% 50%
45%
52%
55%
70%
54%
48%
60%
78%
70%
48%
59%
79%
44%
40%
58%
63%
35%
61%
63%
41%
54%
19%
37%
71%
42%
45%
40% 40%
30%
4
13
KEY FACTORS
SHAPE TRUST IN
BUSINESS
LEADERSHIP/
CEO TRUST
INDUSTRY
SECTOR
COUNTRY
OF ORIGIN (HEADQUARTERS)
ENTERPRISE
TYPE
47%
43%
53%
55%
54%
56%
58%
76%
BANKS
MEDIA
PHARMACEUTICALS
ENERGY
CONSUMER PACKAGED
GOODS
FOOD AND BEVERAGE
AUTOMOTIVE
TECHNOLOGY 79%
70%
66%
65%
59%
59%
51%
51%
TECHNOLOGY
AUTOMOTIVE
FOOD AND BEVERAGE
CONSUMER PACKAGED
GOODS
ENERGY
PHARMACEUTICALS
MEDIA
BANKS
+3
+12
+10
+11
+4
+6
+8
+4
TRUST IN INDUSTRIES, 2009 VS. 2014
Q43-60. [TRACKING] 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) Informed Publics, 20-country global total. 14
TECHNOLOGY CONTINUES TO LEAD, BANKS TRAIL
2014 2009 2009 VS. 2014
31%
36%
36%
76%
78%
81%
U.K.
Sweden
Germany
UAE
China
India
42%
43%
43%
76%
76%
79%
Poland
Russia
Turkey
UAE
Mexico
India
23%
23%
24%
70%
74%
76%
Germany
Ireland
Spain
India
Indonesia
China
Q43-60. [TRACKING] 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) Informed Publics 15
FOOD & BEVERAGE
INDUSTRY
ENERGY
INDUSTRY
THE TOP THREE AND BOTTOM THREE MARKETS FOR TRUST IN FINANCIAL SERVICES,
FOOD & BEVERAGE AND ENERGY INDUSTRIES LEVELS OF TRUST IN INDUSTRY – TOP THREE & BOTTOM THREE COUNTRIES
FINANCIAL SERVICES
INDUSTRY
2014 GLOBAL 2009 VS. 2014
CREDIBILITY OF SPOKESPEOPLE
2009
Q130-143. [TRACKING] 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) Informed Publics, 20-country global total. 16
FROM 2009 TO 2014, SIGNIFICANT GAINS FOR REGULAR EMPLOYEES, A PERSON LIKE
YOURSELF. CEOS FLAT FROM 2013.
*Indonesia
and
Technical
Expert
Not Tested
in 2009
+5
+15
+4
+9
+20
+12
+7 36%
43%
52%
52%
53%
62%
66%
67%
31%
54%
42%
34%
62%
66%
76%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80%
GOVERNMENT OFFICIAL ORREGULATOR
CEO
REGULAR EMPLOYEE
NGO REPRESENTATIVE
FINANCIAL OR INDUSTRY ANALYST
A PERSON LIKE YOURSELF
TECHNICAL EXPERT
ACADEMIC OR EXPERT
29%
31%
32%
41%
49%
47%
62%
0% 20% 40% 60% 80%
GOVERNMENT OFFICIAL ORREGULATOR
CEO
REGULAR EMPLOYEE
NGO REPRESENTATIVE
FINANCIAL OR INDUSTRYANALYST
A PERSON LIKE YOURSELF
TECHNICAL EXPERT*
ACADEMIC OR EXPERT
42%
53% 51% 48%
27%
16% 17% 12%
Government Regulation of
Business
Government Regulation of
Financial Services Industry
Government Regulation of
the Energy Industry
Government Regulation of
the Food & Beverage Industry
NOT ENOUGH REGULATION TOO MUCH REGULATION
BY A THREE-TO-ONE MARGIN INFORMED PUBLICS CALL FOR INCREASED GOVERNMENT REGULATION
OF FINANCIAL SERVICES, ENERGY AND FOOD & BEVERAGE INDUSTRIES
17
GOVERNMENT REGULATION OF BUSINESS AND SECTORS – GLOBAL
Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.
UK: 73% SAY
NOT ENOUGH
REGULATION OF
ENERGY
INDUSTRY
CHINA: 84% SAY
NOT ENOUGH
REGULATION OF
FOOD & BEVERAGE
INDUSTRY
GERMANY: 66% SAY
NOT ENOUGH
REGULATION OF
FINANCIAL SERVICES
INDUSTRY
18
PERCENTAGE AGREEING WITH EACH OF THE FOLLOWING STATEMENTS
Q265-270. Please indicate how much you agree or disagree with the following statements? Informed Publics, 27-country global total.
BUSINESS HAS PERMISSION TO PLAY ROLE IN REGULATION AND DEBATE
The financial services industry should be a more active
participant in the broader debate over the future of the
[COUNTRY] banking system 71%
When policymakers are developing new regulations on
businesses and industries, they should consult with multiple
stakeholders (i.e. NGOs, academics, the affected
businesses/industries, etc.) before making final decisions
79%
The energy industry should be a more active participant in
the broader debate over [COUNTRY] energy policy 74%
The food and beverage industry should be a more active
participant in the broader debate in [COUNTRY] over
solutions to food and nutrition policy issues 74%
65%
89%
47%
BUSINESS TO LEAD THE DEBATE FOR CHANGE
19
Evaluate Establish transparent metrics. Report frequently. Acknowledge performance and amend as needed.
Advocate Offer a clearly articulated strategy that delivers context. Engage and enable to amplify. Create mass movement.
Participate Partner, listen and build relationships to inform strategy.
2014 EDELMAN TRUST
BAROMETER INDONESIA RESULTS
TRUST MAKES THE
DIFFERENCE. Who to vote for.
What product to buy.
Which industry to invest in.
The Big News for this Year? Rapid Rise in
Trust For Business and NGOs
Business as the most trusted institution at 82%, with a renewed
leadership position and expectations of the public that business can
play a central and positive role in shaping society.
• A startling 22% rise in the level of trust in NGOs amongst
informed publics, after years of decline.
• An also surprising rise in trust in government, up a total of 6%
from last year.
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 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 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics.
BUSINESS MEDIA
TOTAL TRUST HAS INCREASED ACROSS ALL FOUR INSTITUTIONS, BIG INCREASE IN TRUST FOR BUSINESS AND NGOS
23
INDONESIA TRUST IN THE FOUR INSTITUTIONS: BUSINESS, MEDIA, NGOS AND GOVERNMENT, 2013 VS. 2014
TOTAL TRUST
TRUST A GREAT DEAL
GOVERNMENT
74% 82%
26% 30%
2013 2014
#1
51%
73%
14% 23%
2013 2014
#3
77% 78%
30% 26%
2013 2014
#2
47% 53%
14% 19%
2013 2014
#4 NGOS
HUGE RISE +22%
THERE IS A BIG DIFFERENCE IN THE LEVELS OF TRUST IN DIFFERENT
INSTITUTIONS IN INDONESIA, COMPARED TO THE GLOBAL RESULTS
46% 52%
66%
53% 51%
73%
77% 75%
86%
80% 77%
78%
62%
64%
80%
78%
74%
82%
45%
62% 62%
40%
47%
53%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014
NGOs
Media
Business
Government
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (4 Box, Trust) Informed Publics.
A RISE IN TRUST ACROSS THE BOARD – WITH SURPRISE RISES FOR NGOS AND GOVERNMENT INDONESIA TRUST IN THE FOUR INSTITUTIONS SINCE 2009
24
25
WHY A RISE IN GOVERNMENT TRUST? A NEW GENERATION OF POLITICAL LEADERS AND AN INCREASINGLY ASSERTIVE KPK.
46% 52%
66%
53% 51%
73%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014
NGOs
NGOs
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (4 Box, Trust) Informed Publics.
HUGE RISE IN TRUST FOR NGOS – A 22% INCREASE. WHY? BETTER STANDARDS AND THE RISE OF THE CORPORATE NGO. INDONESIA TRUST IN NGOS SINCE 2009
26
A HUGE TURNAROUND: WHY?
65% 65%
54%
47% 45%
72% 73%
65%
57% 54%
88%
81% 80%
74% 73%
ONLINE SEARCH ENGINES TRADITIONAL MEDIA HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA
Global APAC Indonesia
Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-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) Informed Publics.
INDONESIA TRUST IN DIFFERENT SOURCES OF INFORMATION
27
INDONESIANS TRUST ALL SOURCES OF INFORMATION HIGHLY. THIS INCLUDES OWNED CONTENT…
2014
50%
28
FROM THE 2013 EMERGING MARKET SUPPLEMENT, INDONESIAN HEADQUARTERED COMPANIES ARE THE MOST TRUSTED OF THE EMERGING MARKETS, BUT STILL LESS SO THAN DEVELOPED MARKET BASED MNCS
MOST TRUSTED NATIONAL IDENTITY FOR COMPANIES – INDONESIAN VIEW
Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. 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) Informed Publics Ages 25-64 in 9-country global total
91% 89%
85% 84%
71%
65% 61%
55% 51% 50%
45%
Germany UK France US Indonesia Russia China Brazil Mexico India South
Africa
Developed Markets 87% Emerging Markets 57%
29 Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a 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) Informed Publics.
INDONESIANS TRUST PUBLICLY-TRADED, BIG BUSINESS AND PRIVATELY HELD COMPANIES THE MOST. STATE OWNED ENTERPRISES ARE THE LEAST TRUSTED.
INDONESIA TRUST IN DIFFERENT TYPES OF BUSINESSES
71% 68%
63% 62% 61%
54%
62% 65%
74%
62%
73%
63%
73%
81%
91% 87%
90%
68%
FAMILY-OWNED SMALL- AND MEDIUM-
SIZED
PUBLICLY-TRADED PRIVATELY-HELD BIG BUSINESS STATE-OWNED
Global APAC Indonesia MUCH HIGHER THAN
APAC
2013 vs. 2014
CREDIBILITY OF SPOKESPEOPLE , 2013 VS. 2014 - INDONESIA
2014 2013
Q130-143. [TRACKING] 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) Informed Publics.
30
TECHNICAL EXPERTS AND ACADEMICS STILL MOST CREDIBLE, BUT HAVE SEEN A DROP. BIG RISE IN CREDIBILITY OF GOVERNMENT OFFICIALS AND REGULAR EMPLOYEES.
30%
31%
34%
42%
53%
54%
58%
62%
66%
70%
76%
BLOGGER
GOVERNMENT OFFICIAL
OR REGULATOR
NGO REPRESENTATIVE
REGULAR EMPLOYEE
BOARD OF DIRECTORS
CEO
*ENTREPRENEUR
FINANCIAL OR INDUSTRY
ANALYST
A PERSON LIKE
YOURSELF
ACADEMIC OR EXPERT
TECHNICAL EXPERT IN
THE COMPANY
26%
22%
31%
34%
48%
55%
60%
64%
67%
77%
80%
BLOGGER
GOVERNMENT OFFICIAL
OR REGULATOR
NGO REPRESENTATIVE
REGULAR EMPLOYEE
BOARD OF DIRECTORS
CEO
*SUCCESSFUL
ENTREPRENEUR
FINANCIAL OR INDUSTRY
ANALYST
A PERSON LIKE YOURSELF
ACADEMIC OR EXPERT
TECHNICAL EXPERT IN THE
COMPANY-4
-7
-1
-2
-2
-1
+5
+8
+3
+9
+4
*Changed from “Successful Entrepreneur” in 2013
BIG GAINS
• Government
Official or
Regulator +9
• Regular Employees
+8
BIG DROP
• Academic or Expert
-7
2013 vs. 2014
TRUST IN INDUSTRIES, 2013 VS. 2014 - INDONESIA
2014 2013
Q43-60. [TRACKING] 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) Informed Publics.
31
TRUST IN INDUSTRIES REMAINS LARGELY UNCHANGED, HOWEVER, THERE WAS A NOTABLE GAIN IN TRUST FOR BREWING AND SPIRITS
93%
90%
88%
88%
87%
83%
80%
79%
79%
78%
78%
77%
74%
74%
43%
TECHNOLOGY
AUTOMOTIVE
CONSUMER ELECTRONICS
MANUFACTURING
TELECOMMUNICATIONS
BANKS
PHARMACEUTICALS
FOOD AND BEVERAGE
ENERGY
CONSUMER PACKAGED GOODS
FINANCIAL SERVICES
MEDIA
ENTERTAINMENT
CONSUMER HEALTH COMPANIES
CHEMICALS
BREWING AND SPIRITS
94%
93%
92%
89%
90%
87%
84%
84%
80%
84%
81%
78%
76%
71%
36%
TECHNOLOGY
AUTOMOTIVE
CONSUMER ELECTRONICS
MANUFACTURING
TELECOMMUNICATIONS
BANKS
PHARMACEUTICALS
FOOD AND BEVERAGE
ENERGY
CONSUMER PACKAGED GOODS
FINANCIAL SERVICES
MEDIA
ENTERTAINMENT
CONSUMER HEALTH COMPANIES
CHEMICALS
BREWING AND SPIRITS
-1
-3
-4
-1
-3
-4
-4
-5
-1
-6
-3
-1
-2
+3
+7
GLOBALLY, TRUST IN BANKS IS AT 51% DUE TO THE LEGACY OF THE
FINANCIAL CRISIS ; A CRISIS THAT BARELY AFFECTED INDONESIA
Q61A-64A. [SPLIT SAMPLE] Now thinking about specific sectors within the [TYPE OF INDUSTRY], please indicate how much you trust businesses in each of the following sectors 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”. Q43-60. [TRACKING] 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”. [RANDOMIZE. SELECT ONE RESPONSE] (Top 4 Box, Trust) General Publics.
FINANCIAL SERVICES
INDUSTRY
FOOD & BEVERAGE
INDUSTRY
ENERGY
INDUSTRY
TRUST BREAKDOWN BY SECTOR
32
INDONESIA TRUST IN INDUSTRY SECTORS
60%
62%
65%
71%
79%
Insurance
Credit cards /
Payments
Financial advisory /
Asset management
Financial services
industry overall
Banks
60%
68%
74%
74%
76%
Food and
beverage retailers
Fast food
restaurants
Food and
beverage
manufacturers
Food Industry
overall
Food service
66%
66%
67%
69%
74%
76%
Mining
Natural Gas
Oil
Utilities
Energy industry
overall
Renewables
48% 40%
27% 28%
48% 40%
29% 28%
CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS
MAKE ETHICAL AND MORAL DECISIONS
TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT
IS
SOLVE SOCIAL OR SOCIETAL ISSUES
INDONESIA TRUST IN BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING
GOVERNMENT LEADERS
33
BUSINESS LEADERS
Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following?; Q144B-147B. [SPLIT SAMPLE] How much do you trust government
leaders to do the following? (Top Box, Trust a great deal) General Publics.
BUSINESS LEADERS ARE MUCH MORE TRUSTED THAN GOVERNMENT LEADERS – INDONESIANS BELIEVE THAT BUSINESS IS MORE LIKELY TO DO THE RIGHT THING. TRUST IN BUSINESS LEADERS IS CONSIDERABLY HIGHER THAN THE GLOBAL AVERAGE TOO.
16% 15% 12% 15% 14% 17% 15% 17%
CORRECT ISSUES WITHIN
INDUSTRIES THAT ARE
EXPERIENCING PROBLEMS
MAKE ETHICAL AND MORAL
DECISIONS
TELL YOU THE TRUTH, REGARDLESS
OF HOW COMPLEX OR UNPOPULAR IT
IS
SOLVE SOCIAL OR SOCIETAL ISSUES
3.4X MORE 2.4X MORE 2X MORE
2013
2014
2013
2014
TRUST IN BUSINESS LEADERS – ACROSS THE WORLD
34
INDONESIA HAS A VERY HIGH TRUST LEVEL IN BUSINESS LEADERS COMPARATIVELY – A TOTAL AVERAGE OF 36%.
AT THE OTHER END OF THE GLOBAL SCALE, POLAND HAS A VERY LOW LEVEL OF TRUST IN BUSINESS LEADERS – JUST 8%.
0%
10%
20%
30%
40%
50%
60%
Bra
zil
Ind
ia
Ind
on
esia
Ch
ina
UA
E
Jap
an
Sw
ed
en
Ma
lays
ia
Me
xico
Ho
ng K
on
g
Tu
rke
y
Sin
ga
po
re
Arg
en
tin
a
Ita
ly
S.
Afr
ica
Sp
ain
Ru
ssia
S.
Ko
rea
U.S
.
Ge
rma
ny
Ca
na
da
UK
Ne
the
rla
nd
s
Fra
nce
Ire
lan
d
Au
str
alia
Po
lan
d
TO WORK TO CORRECT ISSUES WITHIN INDUSTRIES
THAT ARE EXPERIENCING PROBLEMS
TO MAKE ETHICAL AND MORAL DECISIONS
TO TELL YOU THE TRUTH, REGARDLESS OF HOW
COMPLEX OR UNPOPULAR IT IS
TO HELP SOLVE SOCIAL OR SOCIETAL ISSUES
AVERAGE
TRUST IN GOVERNMENT LEADERS – ACROSS THE WORLD
35
LOOKING AT GOVERNMENT LEADERS, INDONESIANS TRUST THEM FAR LESS. INDONESIA’S AVERAGE IS 16%, MID-RANK GLOBALLY. COMPARATIVELY, THE UAE AND SINGAPORE HAVE THE HIGHEST TRUST IN GOVERNMENT LEADERS AT 44% AND 31%,
WHILE IRELAND AND FRANCE HAVE THE LOWEST TRUST LEVELS – THEY REALLY DON’T TRUST THEIR GOVERNMENT LEADERS – WITH AN AVERAGE OF 4% AND 6%.
0%
10%
20%
30%
40%
50%
60%
UA
E
Sin
ga
po
re
Ch
ina
Ind
ia
Sw
ed
en
Ma
lays
ia
Ho
ng K
on
g
Bra
zil
Tu
rke
y
Jap
an
Ind
on
esia
S.
Ko
rea
Arg
en
tin
a
Ru
ssia
U.S
.
UK
S.
Afr
ica
Au
str
alia
Ge
rma
ny
Ca
na
da
Ita
ly
Sp
ain
Me
xico
Ne
the
rla
nd
s
Po
lan
d
Fra
nce
Ire
lan
d
TO HELP SOLVE SOCIAL OR SOCIETAL ISSUES
TO MAKE ETHICAL AND MORAL DECISIONS
TO WORK TO CORRECT ISSUES WITHIN INDUSTRIES
THAT ARE EXPERIENCING PROBLEMS
TO TELL YOU THE TRUTH, REGARDLESS OF HOW
COMPLEX OR UNPOPULAR IT IS
AVERAGE
-22
-25
-23
-19
-22
-28
-22
-22
-20
-20
-17
-14
-9
-12
-9
-6 31%
39%
36%
42%
46%
45%
42%
44%
43%
44%
39%
45%
50%
46%
45%
49%
37%
48%
48%
51%
60%
62%
62%
64%
65%
66%
67%
67%
69%
69%
70%
71%
ADMIRED TOP LEADERSHIP
TOP GLOBAL COMPANY
PARTNERS WITH THIRD PARTIES
CONSISTENT FINANCIAL RETURNS
INNOVATOR
ADDRESSES SOCIETY'S NEEDS
CUSTOMERS BEFORE PROFITS
COMMUNICATES OFTEN
TRANSPARENT & OPEN
POSITIVELY IMPACTS COMMUNITY
PROTECTS ENVIRONMENT
ACTS RESPONSIBLY IN CRISIS
HIGH QUALITY PRODUCTS
LOOKS AFTER EMPLOYEES
IS ETHICAL
LISTENS TO CUSTOMERS
Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action 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, Very/Extremely Important) Informed Publics, 27-
country global total.; 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, Performing Extremely Well) Informed Publics.
BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - INDONESIA Gap
36
IMPORTANCE PERFORMANCE
WHAT DRIVES TRUST IN INDONESIA? LISTENS TO CUSTOMERS, IS ETHICAL, LOOKS AFTER EMPLOYEES – INDONESIANS CARE MORE ABOUT THE SOCIAL ISSUES.
INTEGRITY
PURPOSE
OPERATIONS
PRODUCTS & SERVICES
ENGAGEMENT
37
GLO
BA
L
IND
ON
ES
IA
GLOBAL 1. Offers Quality Products
Or Service
2. Listens To Customers
3. Looks After Employees
INDONESIA 1. Listens to Customers
2. Is Ethical
3. Looks After Employees
INDONESIANS WANT GOVERNMENT TO BUILD MORE INFRASTRUCTURE! GLOBALLY, PROTECTING CONSUMERS IS THE MOST IMPORTANT ISSUE
38
MOST IMPORTANT ROLE FOR GOVERNMENT IN BUSINESS – GLOBAL AND INDONESIA
Q149. [TRACKING] Which of the following is the most important role that government should play in business? Informed Publics.
NUMBER 1 PRIORITY IN
INDONESIA.: INFRASTRUCTURE
IMPERATIVE
INFRASTRUCTURE ONLY THE THIRD
PRIORITY GLOBALLY.
ALSO, BIG DIFFERENCE BETWEEN
INDONESIA AND THE GLOBAL
AVERAGE IN TERMS OF FREE
MARKET ACCESSES AS A PRIORITY
28%
23% 21%
18%
4% 5%
1%
26%
22%
45%
5%
1% 1% 0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
PROTECT
CONSUMERS
REGULATE
BUSINESS
ACTIVITIES
BUILD
INFRASTRUCTURE
WORK TO ENSURE
FREE MARKET
ACCESS AND
COMPETITION
GIVE OR LOAN
MONEY TO
BUSINESS WHEN
IT EXPERIENCES
FINANCIAL CRISIS
GOVERNMENT
SHOULD NOT PLAY
A ROLE IN
BUSINESS
DON'T KNOW
Global Average
Indonesia
nearly 30% of China’s
10 countries $2.4 trillion GDP 600 Million people
So with only 5% of
Indonesians wanting
government to focus on
free markets, where does
that leave the AEC?
THE ASEAN ECONOMIC COMMUNITY 2015
INDONESIANS WANT (SOME) MORE REGULATION. ACCOUNTABILITY AND QUALITY ARE KEY HERE, SIMILAR TO GLOBAL AVERAGE.
40
GOVERNMENT REGULATION OF BUSINESS AND SECTORS
Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics.
42% 38%
59%
52%
30%
17% 19%
13%
Government
Regulation of
Business
Government
Regulation of
Financial
Services Industry
Government
Regulation of the
Energy Industry
Government
Regulation of the
Food & Beverage
Industry
Not Enough Too Much
45% 22% 35%
28%
Right
amount/Don’t
know
42%
53% 51% 48%
27%
16% 17% 12%
Government
Regulation of
Business
Government
Regulation of
Financial
Services
Industry
Government
Regulation of
the Energy
Industry
Government
Regulation of
the Food &
Beverage
Industry
INDONESIA GLOBAL
BIG DIFFERENCE IN INDUSTRIES
THAT SHOULD BE REGULATED
MORE.
INDONESIA – ENERGY SECTOR.
GLOBAL – FINANCIAL SECTOR.
31% 31% 32%
40%
WHAT CEOS SHOULD DO TO BUILD TRUST
41
ACTIONS A CEO CAN TAKE TO BUILD TRUST IN THEMSELVES AND THEIR COMPANY – GLOBAL AND INDONESIA
Q254A-261A. [SPLIT SAMPLE ] Thinking about the following actions a CEO can take, how important is each of the following to building your TRUST in that CEO? (Top 4 Box, Total Important) Informed Publics.
QUALITY NOT
QUANTITY
82% 81% 80% 79%
69%
53%
88% 86%
82% 83% 79%
51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
COMMUNICATES
CLEARLY AND
TRANSPARENTLY
TELLS THE TRUTH,
REGARDLESS OF HOW
COMPLEX OR
UNPOPULAR IT IS
ENGAGES WITH
EMPLOYEES
REGULARLY TO
DISCUSS THE STATE
OF THE BUSINESS
IS FRONT AND
CENTER DURING
CHALLENGING TIMES
IS PERSONALLY
INVOLVED IN
SUPPORTING LOCAL
CHARITIES AND GOOD
CAUSES
HAS AN ACTIVE MEDIA
PRESENCE
Global Average
Indonesia
INDONESIANS WANT MORE INVOLVEMENT FROM INDUSTRY AND ALSO BELIEVE GOVERNMENT HAS A GREATER ROLE TO PLAY IN BUSINESS. WHAT DOES THIS MEAN? IT IS ALL ABOUT PARTNERSHIPS.
42
PERCENTAGE AGREEING WITH EACH OF THE FOLLOWING STATEMENTS - INDONESIA
Q265-270. Please indicate how much you agree or disagree with the following statements? Informed Publics.
88%
90%
89%
89% The energy industry should be a more active participant in
the broader debate over INDONESIA energy policy
The food and beverage industry should be a more active
participant in the broader debate in INDONESIA over
solutions to food and nutrition policy issues
The financial services industry should be a more active
participant in the broader debate over the future of the
INDONESIA banking system
When policymakers are developing new regulations on
businesses and industries, they should consult with multiple
stakeholders (i.e. NGOs, academics, the affected
businesses/industries, etc.) before making final decisions
LESSONS FOR BUSINESS
Business leaders are trusted more than government. Business is also expected to lead. It is expected to contribute to society and focus on social issues.
Trust drivers for companies include acting ethically and looking after employees.
In Indonesia, social issues and community involvement are mission critical for trust.
Indonesians trust multiple information sources – including owned assets.
Businesses can capitalize by creating and curating great content.
43
KEY POINTS
44
Trust across the board in Indonesia remains strong.
Business has a strong trust advantage and Indonesians expect business to lead, in part because government isn't.
Media trust remains high, but will not be taken at face value. Integrity is needed to ensure this trust stays high, especially in a national election year.
Trust in government is low, but has improved. Better transparency through the KPK and Indonesia’s new generation of political leaders might be driving trust upwards.
Trust in NGOs has seen a significant gain from last year. More accountability, better standards and the rise of the ‘corporate NGO’ might be driving this.
Trust drivers this year focus on listening to customers – consumers are demanding better service.
