Joint European Chambers’ Business Confidence Index 2019


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.

Business Outlook

  • 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.

Government Policy

  • 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.

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Business Confidence Index:

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