It are challenging times for businessmen and investors in Indonesia. An escalating trade war between the United States and China is felt by emerging markets including Indonesia. For example, the rupiah has weakened to a 20-year low against the US dollar. Meanwhile, Indonesia's legislative and presidential elections are scheduled for April 2019 and the results can have big consequences for the country's investment climate.
Having these global and domestic challenges in mind, it is worth taking a look at the opinions of chief executive officers (CEOs) in Indonesia about the investment climate, economy, and more. Each quarter the Kontan CEO Confidence Index (KCCI) is updated. The KCCI is an index that is compiled by Kontan, an Indonesian newspaper and magazine that focuses on business and investment (and which is part of the Kompas Gramedia Group).
The Q4-2018 KCCI update, which was released in October 2018, showed an improvement among CEOs’ perceptions of the Indonesian economy as the overall reading rose from 3.45 in Q3-2018 to 3.63 in Q4-2018 (zero reflects absolute pessimism, while a reading of 5.00 reflects perfect optimism). However, the 3.63 score stills falls in the “neutral” category (implying a wait and see mode before taking crucial decisions). Nevertheless, it is closer to “optimistic” than it is to “pessimistic”.
The overall KCCI figure is based on six indices: (1) domestic economy, (2) government spending, (3) purchasing power, (4) global economy, (5) national politics, and (6) business expansion. With the exception of government spending, CEOs’ perceptions improved in all these indices.
Read the full article in the October 2018 edition of our monthly research report. You can purchase this report by sending an email to firstname.lastname@example.org or a WhatsApp (WA) message to the following number: +6287884106944
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