joint european chambers’ business joint … release/business confidence... · labor corruption...
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Copyright ©2017 The Nielsen Company. Confidential and proprietary.
JOINT EUROPEAN
CHAMBERS’
BUSINESS
CONFIDENCE INDEX
2016
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Copyright ©
2
017 Th
e
Nielsen Co mpany. Co
n
fiden; al and
propr ietary.
JOINT EUROPEAN
CHAMBERS’
BUSINESS
CONFIDENCE INDEX
2016
CREATED & MANAGED BY: COMMISSIONED BY: SURVEY PARTNER: CO-FUNDED BY: IN PARTNERSHIP WITH:
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Copyright ©2017 The Nielsen Company. Confidential and proprietary.
RESEARCH METHODOLOGY
SELF-COMPLETION VIA
ONLINE INTERVIEWS
QUESTIONNAIRE15 MINUTE
FIELDWORK CONDUCTED
2ND DEC’16 – 26TH JAN’17
SAMPLE SIZE
148COVERAGE
JAKARTA
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PROFILE OF RESPONDENTS
Increasing number of respondents affiliated with the British Chamber of Commerce, with private services as the main business sector
Reff: Q7 & Q11| Base: 148
MAIN CHAMBER AFFILIATION KEY BUSINESS SECTORS OF COMPANIES
46%BRITISH CHAMBER
(+8%)
25%EURO CHAMBER
(+3%)
11%GERMAN
CHAMBER
(-3%)
5%DUTCH
CHAMBER
(-2%)
5%FRENCH CHAMBER
(-2%)
8%OTHER CHAMBER
(-2%)
24% 16% 13% 11% 11% 7%
BANKING,
FINANCE, &
INSURANCE
INFRASTRUCTURE
& CONSTRUCTION
ENERGY &
NATURAL RESOURCES(+8%)(-3%) (-1%)
(XX%) : DIFFERENCES FROM ’15 DATA
CHEMICALS,
PHARMA,
COSMETICS
RETAIL /
CONSUMER
GOODS
(-1%)
(+2%) (0%)
SERVICES
(PRIVATE)
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OUTLOOK TOWARDS
BUSINESS ENVIRONMENT
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OUTLOOK TOWARDS BUSINESS ENVIRONMENT
People are still positive about the Business Outlook in Indonesia
Reff: Q13 | Base: 148
Outlook on business in Indonesia over the next twelve months?
OUTLOOK FOR BUSINESS IN NEXT 12 MONTHS
14% 37% 49%
Negative Neutral Positive
-2% +3% -1%
: Significant increase/decrease with 95% confidence
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TOP 5 BUSINESS SECTORS WITH POSITIVE
OUTLOOK
Increasingly positive outlook towards Infrastructure/Construction and Travel & Tourism
IN NEXT 12 MONTHS
Reff: Q14| Base: 148
Which are the key business sectors with positive outlooks?
OUTLOOK FOR BUSINESS IN NEXT 12 MONTHS
76%64% 59%
52% 48%
TOP 2 BOX : INDICATES “POSITIVE” + “VERY POSITIVE”
INFRASTRUCTURE & CONSTRUCTION
HOSPITALITY, TRAVEL & TOURISM
FOOD & BEVERAGE
RETAIL / CONSUMER GOODS
SERVICE (PRIVATE)
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EXPECTATION FROM BUSINESS
Significantly increasing amount of people believe that Revenue and Workforce will increase in the next 12 months
IN NEXT 12 MONTHS
Reff: Q30| Base: 148
EXPECTATION FROM BUSINESS IN NEXT 12 MONTHS
TOP 2 BOX : INDICATES “POSITIVE” + “VERY POSITIVE”
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
78%
+12% +9% +11% +3%
60% 59% 48%
: Significant increase/decrease with 95% confidence
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OUTLOOK TOWARDS MACROECONOMIC
FACTORS
Overall outlook shows an increasing trend, except for the outlook towards the political environment
IN NEXT 12 MONTHS
Reff: Q15| Base: 148
OUTLOOK MACROECONOMIC IN NEXT 12 MONTHS
60%
40%47%
22%
12%
35%
27%
18%13% 9%
43%40%
16% 14%11%
INVESTMENT CLIMATE FISCAL POLICY POLITICAL ENVIRONMENT REGULATORY/LEGALENVIRONMENT
LABOR POLICY
2014 2015 2016
+8%+13%
-2% +1%+2%
TOP 2 BOX : INDICATES “POSITIVE” + “VERY POSITIVE”
: Significant increase/decrease with 95% confidence
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CHALLENGES FOR BUSINESS IN INDONESIA
In line with that finding, political & social stability is considered to be an increasing concern
IN NEXT 12 MONTHS
Reff: Q17| Base: 148
BUSINESS IN INDONESIA IN NEXT 12 MONTHS
72% 72%
46%
60%
71% 68%62%
69% 71%
32%
57%50% 51%
45%
72% 70%
47% 49% 48% 47%43%
REGULATORYENVIRONMENT
BUREAUCRATICINEFFICIENCY/RED
TAPE
POLITICAL & SOCIALSTABILITY
LABOR POLICY LACK OFINFRASTRUCTURE
LACK OF SKILLEDLABOR
CORRUPTION
2014 2015 2016
TOP CHALLENGES CHALLENGES 2016 vs. 2015INCREASING
CONCERN
+3% -1%
+15%
-8% -2% -4%
-2%
TOP 2 BOX : INDICATES “LIKELY” + “VERY LIKELY” TO AFFECT INDONESIA
: Significant increase/decrease with 95% confidence
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MAJOR INVESTMENTS IN INDONESIA
Thus, it is no wonder that investors are still on the fence when considering FURTHER INVESTMENTS in Indonesia compared to last year
Reff: Q12| Base: 148
Major investments in Indonesia over the next 12 months?
MAJOR INVESTMENTS IN INDONESIA IN NEXT 2 YEARS
24% 41% 35%
No Maybe Yes
-11%
+22%
-11%
IN NEXT 12 MONTHS
: Significant increase/decrease with 95% confidence
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BUSINESS EXPANSION CONSIDERED IN 2017
26% of business owners have expansion plans in Indonesia for 2017.At city level, Surabaya, Bandung, & Medan are increasingly considered as expansion targets
FUTURE PROSPECTS IN 2016
Reff: Q31, Q32, and Q33| Base: 148
26% CONSIDER TO EXPAND THEIR BUSINESS IN NEXT 12 MONTHS
5%BALIKPAPAN
12%PAPUA
41%SURABAYA
3%LAMPUNG
20%MEDAN
21%BANDUNG
4%MAKASSAR
20%BALI
3%SEMARANG
(+10%)
(0%)(+14%)
(+2%)
(+26%)
(+2%)
(+6%)
(+3%)
(+5%)
(XX%) : DIFFERENCES FROM ’15 DATA
: Significant increase/decrease with 95% confidence
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BUSINESS CONFIDENCE INDEX
With a positive business outlook but negative political environment, Business Confidence Index is more or less balanced and remain stable compared to 2015
Reff: Q13| Base: 148
60%71%
50% 49%
2013 2014 2015 2016
BUSINESS CONFIDENCE INDEX
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GOVERNMENT'S ATTITUDE
The government attitude remains strong.
IN NEXT 12 MONTHS
Reff: Q19| Base: 148
TOP 2 BOX : INDICATES “WILL IMPROVE” + “WILL IMPROVE A LOT”
GOVERNMENT'S ATTITUDE
26%26%
36%43%
55%
Clear And Concise
Explanations Provided
Effective ImplementationPro-Business DecisionCoordination With Other
Ministries
Consultation With
Business
-4%
0%-3%
+4% +5%
: Significant increase/decrease with 95% confidence
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GOVERNMENT'S ACTION
Even more so, companies believe that increasing action will be taken by the government compared to the previous year
IN NEXT 12 MONTHS
Reff: 20| Base: 148
TOP 2 BOX : INDICATES “WILL IMPROVE” + “WILL IMPROVE A LOT”
GOVERNMENT'S ACTION
53%54%57%51%51%
Clear And Concise
Explanations Provided
Effective ImplementationPro-Business DecisionCoordination With Other
Ministries
Consultation With
Business
+9% +15%+16% +30% +31%
: Significant increase/decrease with 95% confidence
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IMPACT OF ECONOMIC STIMULUS PACKAGES
One third of corporate respondents are positively impacted by the government economic stimulus packages. However, more do not yet feel impacted.
Reff: Q37| Base: 148
TOP 2 BOX : INDICATES “SOMEWHAT AFFECTING” + “AFFECTING A LOT”
IMPACT OF ECONOMIC STIMULUS PACKAGES TO BUSINESS DEVELOPMENT PLAN
30% 37% 33%
Not Affecting Neutral Affecting
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BUSINESS OUTLOOK FACTORS AFFECTING BUSINESS
BUSINESS CONFIDENCEINDEX
GOVERNMENT POLICY
• Business outlook remains
positive
• Infrastructure, Hospitality,
and F&B are the key
business sectors in 2017
• Business expansion targets
are Surabaya, Bandung, &
Medan
• While the Macroeconomic
outlook shows a positive
trend, political environment
is lower than 2016
• In line with that, political &
social stability is a
significantly increasing
concern, while main
challenges are still regulatory
environment & bureaucratic
inefficiency
• Investors are adopting a
“wait-and-see” attitude to
investing in Indonesia
• Business Confident Index
remains stable and balanced
between the positive outlook
and increasing political
concerns
• Better perception towards
Government Policy &
Regulations
• There is opportunity for
growth by utilizing more
targeted revamped
economic stimulus
packages
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AN UNCOMMON SENSE OF THE CONSUMER
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PERCEPTION TOWARDS EUROPEAN CHAMBER OF COMMERCE
ROLE IN SUPPORTING BUSINESS
The impact of the Chambers of Commerce in supporting business is perceived as extremely positive as last year
Reff: Q35 | Base: 148
TOP 2 BOX : INDICATES “POSITIVE” + “VERY POSITIVE”
29%
1% 1%
41%
35% 35%
31% 64% 64%
2014 2015 2016
Negative impact Neutral Positive impact
ROLE IN SUPPORTING BUSINESS
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THANK YOU
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Copyright ©
2
017 Th
e
Nielsen Co mpany. Co
n
fiden; al and
propr ietary.
JOINT EUROPEAN
CHAMBERS’
BUSINESS
CONFIDENCE INDEX
2016
CREATED & MANAGED BY: COMMISSIONED BY: SURVEY PARTNER: CO-FUNDED BY: IN PARTNERSHIP WITH:
1