Business confidence up in Q3: BPS<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Business confidence throughout the country improved during the
\nthird quarter from the previous quarter, the Central Statistics
\nAgency (BPS) reported on Friday.<\/p>\n
The agency said the business index for the July-September
\nperiod rose to 111.36.<\/p>\n
\"This indicates that business conditions in the third quarter
\nwere generally better compared to the second quarter,\" the BPS
\nsaid in its latest quarterly business confidence survey.<\/p>\n
The agency said improving business confidence was primarily
\nthe result of three factors: higher operating revenue, higher
\nproduction capacity and an increase in the utilization of labor.<\/p>\n
BPS also said that the business confidence index could improve
\nfurther in the fourth quarter on expectations of rising orders
\nfrom the domestic and overseas markets, and a continued increase
\nin the sale price of goods.<\/p>\n
The business confidence index is an important tool for
\ndetermining the appetite of the business sector for making new
\ninvestments, a crucial factor in economic growth.<\/p>\n
While investment has lagged over the past several years due to
\nthe deteriorating investment climate at home, there are
\nindications of rising investment activity in the BPS' third
\nquarter economic growth report.<\/p>\n
The BPS said the economy grew at a faster rate of 5.03 percent
\nin the third quarter compared to the same period last year,
\npartly due to a surprising 11.32 percent increase in investment
\nduring the quarter.<\/p>\n
The World Bank, however, has warned that despite signs of
\nincreased investment, the government needs to push ahead with its
\neconomic reforms and continue improving the investment climate.<\/p>\n
The economy over the past several years has grow at an average
\nof 4 percent per year. Growth has been mainly driven by higher
\ndomestic consumption, as investment and exports have been weak.<\/p>\n
The new government of President Susilo Bambang Yudhoyono has
\nvowed to repair the domestic investment climate, generate
\neconomic growth of more than 6 percent per year and help resolve
\nthe country's chronic unemployment problem.<\/p>\n
Elsewhere, the BPS also said the consumer confidence index
\nduring the third quarter improved from the second quarter, mainly
\ndue to higher household income and stable consumer good prices.<\/p>",
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