Business confidence index shows recovery<\/p>\n
The Jakarta Post , Jakarta<\/p>\n
Business confidence recovered in April and May due to the
\nrelatively peaceful legislative elections, with corporate leaders
\nbecoming increasingly convinced that the government will be able
\nto maintain order during the presidential election, a survey
\nsays.<\/p>\n
Danareksa Research Institute's business sentiment survey said
\nthe business sentiment index (BSI) climbed 0.6 percent to 113.4
\nin April and May as a result of a 1.2 percent increase in the
\nexpectation index (EI) to 119.8.<\/p>\n
\"On the back of improved sentiment regarding the country's
\nsound recovery prospects was the absence of violence during the
\nlegislative campaign in March. The peaceful campaign sets a
\npositive precedent for the upcoming presidential election,\" the
\nsurvey said.<\/p>\n
The survey was based on responses from some 700 CEOs and
\ndirectors of leading companies in a range of sectors from
\nconstruction to tourism.<\/p>\n
A figure of 200 represents the most optimistic outlook. If the
\nindex is below 100, it means that pessimism outweighs optimism. A
\nfigure of 0 signifies the most pessimistic response possible.<\/p>\n
Despite rising confidence, however, the corporate leaders had
\ndoubts about business expansion.<\/p>\n
\"Businesspeople were uncertain if sales could perform well at
\na time when legislative election news dominated everything on a
\nday-to-day basis, irrespective of their stronger confidence in
\nthe nation's recovery in the making,\" it said<\/p>\n
The uncertainty, coupled with upward cost pressures, had
\ncaused sentiment indices that gauge corporate progress to
\ndecline.<\/p>\n
However, the survey said, business prospects from June to
\nNovember remain sound. CEOs felt upbeat on their company
\nprospects, and expected their sales growth to accelerate, thus
\ngenerating stronger cash flows and higher profits.<\/p>\n
They were also convinced that the government was still
\neffective in managing the country during the presidential
\nelection, as reflected by the rise in the government index (BCGI)
\nto 88.9 from 88.6, the survey said.<\/p>\n
The CEOs believed the presidential election would not derail
\nthe business recovery process in the making, as the government
\nhad shown itself better at controlling security.<\/p>\n
\"Should the presidential election pass without commotion,
\nvigorous business momentum shall return,\" it said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/business-confidence-index-shows-recovery-1447893297",
"image": ""
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