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Trade Outlook
Business Sentiment Survey Oktober 2017
October 11, 2017 08:43

Down on economic weakness


Business sentiment deteriorated further on concerns over the performance of the economy. After dipping 2.1 percent in the April-May 2017 survey, the Business Sentiment Index (BSI) fell another 4.2 percent in the reporting period of June-July 2017 to 134.2.

Despite these findings, however, CEOs remain broadly upbeat on Indonesia’s prospects going forward – although the Expectations Index declined by 4.1 percent it remains at a relatively high level of 143.5.

An important finding of our survey is that CEOs believe that inflation poses less of a threat going forward: this index dipped 5.1 percent to 114.9.

Our survey also reveals that sentiment remains upbeat in many sectors of the economy, most notably finance (where the index jumped 13.1 percent to a level of 165.8).

CEOs remain optimistic that their companies will perform well over the next six months. In particular, both sales and profits growth are expected to remain firm (these two indexes posted slight gains to 137.2 and 142.7 respectively).

CEOs were more satisfied with the performance of the government. In our survey, the overall measure of Business Confidence in the Government (the BCGI) climbed 2.3 percent to 139.8, as tensions eased following Jakarta’s gubernatorial elections in April 2017.