BritCham and EuroCham unveiled the results of the latest Joint European Chambers’ Business Confidence Index 2016 at the Ritz Carlton Pacific Place in March. This is the fifth annual survey of European businesses to be presented to BKPM, European Ambassadors and senior executive representatives of businesses domiciled in greater Jakarta. It is the only survey of its kind polling across a range of sectors and monitoring attitudes and appetites as they relate to government policy and effectiveness, regulations, bureaucracy, corruption, investment, labour, political environment and country risk.
Chairman of BritCham and Vice Chairman of EuroCham, Adiran Short, focused the presentation of the results in a few key areas : firstly, that the results showed a strong level of confidence in the long-awaited investment in infrastructure projects and would provide better and more viable prospects for foreign investors of other sectors. Secondly, that while the index remained stable, there was a clear belief that the government is ready to act in more positive ways to support the pitch for FDI – this should translate to tangible improvements with regards to the regulatory environment. Finally, more than one-third of businesses domiciled in Indonesia are poised to make further significant investments over the next two years and possibly outside of Greater Jakarta.
Mr Short, did caution however, “while sentiment overall remains positive and supportive of government and its policies, there are concerns on two fronts: that economic stimulus packages are not yet positively impacting enough businesses already invested here and that there is a growing concern relating to political and social stability. But, in challenging times globally, we can all take some comfort from these outputs which can be used objectively to improve Indonesia’s competitiveness as a destination for FDI.”
Following the presentation in the open session facilitated by BritCham Executive Director, Chris Wren, H.E. Moazzam Malik commented on the statistic that showed that concern for political and social stability had risen to its highest point in the last 3 years, up from 32 to 47 percent year on year. “It is better not to over-interpret the high concern on political instability in Indonesia as the survey was taken in Jakarta during the disruptions that led up to the gubernatorial elections.” The British Ambassador went on to point out that “business people make investment decisions with a long term perspective. The government has transitioned to democracy since 1998 in a peaceful and stable way.”
Responding on behalf of all European Chambers, EuroCham Chairman Ulf Backlund, emphasized the need for the foreign chambers to work with KADIN to be a credible voice representing the views of the private sector of business. “Together we must continue to present government with evidence-based, examples of why further regulatory and bureaucratic reform would create the business environment to encourage consistent interest in investing in Indonesia. The Ambassadors of the EU, UK, Germany, Ireland and Slovakia commended the efforts of BritCham, EuroCham, and the EIBN and encouraged businesses to join and engage with their national chambers.
The Business Confidence Index was conceived by BritCham in 2012 as a B2B survey of British investors domiciled in Indonesia. In 2014, it was expanded to include European businesses from among the members of BritCham, EKONID. INA, IFCCI and EuroCham. The BCI 2016 invited responses from The European Indonesia Business Network (EIBN) database which all European businesses can sign up to. The BCI 2016 was created and managed by BritCham, commissioned by EuroCham, with co-funding from the EU Commission.
The BCI 2016 international market research partner is Nielsen.
To view the presentation, visit BritCham website: http://www.britcham.or.id/assets/files/Media%20Release/Business%20Confidence%20Index%202016.pdf