The British Chamber of Commerce Indonesia has just released its Business Confidence Index 2019 (BCI). BCI is a B2B survey of European investors domiciled in Indonesia that provides a series of snapshots on the economy and government performance that reflect the overall confidence of business towards revenue, head-count, profit, and future investment.
BritCham Indonesia highlighted the following findings in this year’s index:
- While the sentiment is less favourable for hospitality, travel & tourism and food & beverage sectors, the outlook remains very positive for infrastructure & construction and significantly improved in education.
- There is a very positive outlook improvement on the political environment and a positive trend on regulatory and legal environment.
- There are rising concerns on the impact of the protectionism.
- Sentiment suggests that business will be less challenged by the regulatory environment, bureaucratic inefficiency, custom & import regulation and political & social stability.
- However, a higher percentage remain undecided regarding major investment.
- There is a clear expectation of improvement in government attitude towards business.
- With the positive perception towards the government, a modest positive impact on business is expected.
- The impact of the economic stimulus packages remains like 2017/2018.
- The business outlook is still relatively stable compared to last year.
- The outlook for Hospitality/Travel and Food & Beverage is less positive than last year.
- Business activity has expanded in Sumatera and Sulawesi and there are continued expansion plans in Bali and East Java.
Factors Affecting Business
- While Macroeconomic outlook still shows a positive trend, they remain concerned about corruption and labour party, there is renewed concern towards terrorism.
- The outlook for future investment overall remains quite positive.
- Positive opinion towards Government Policy & Regulations is translated into a more positive business impact.
- European business remains not positively impacted by the stimulus package.
Business Confidence index
- Business Confidence Index has stabilized after last year’s first increase in 4 years.
To view the entire Business Confidence Index, please click the link to download the document below.