Business sentiment index turns to pessimistic<\/p>\n
JAKARTA (JP): The Business Sentiment Index (BSI) continued on
\na downward trend over growing fears that political mayhem might
\nfurther affect business progress, according to a survey by
\nDanareksa Research Institute.<\/p>\n
The research agency said on Thursday that the BSI index in the
\nFebruary-March period declined by 1.3 percent to 113.8 from 115.3
\nin the previous period.<\/p>\n
"Optimism of the chief executive officers (CEO) for their
\nbusiness remains but their confidence skidded on fears that a
\nworsening political situation could end in anarchy, ruining their
\nbusiness prospects," the research agency said.<\/p>\n
It further revealed that the Present Situation Index ended
\nunmoved at 107.5 due to continued uncertainty on the political
\nfront.<\/p>\n
The Expectation Index also slipped as CEO's sentiments about
\ntheir business outlook were battered by the government's
\ninability to drag the country out of three years of political and
\neconomic woes, the agency said.<\/p>\n
The research agency said that on the back of the decline in
\nbusiness sentiment was the jittery business environment
\nunderscored by the slide in the business confidence in the
\ngovernment (BCGI) index that cracked below 100, with pessimism
\nedging optimism.<\/p>\n
"With the BCGI falling to 99.4 from 104.6, most businessmen
\nare no longer optimistic about the government's ability to ensure
\na conducive business environment," it said.<\/p>\n
According to the survey, CEOs were pessimistic about the
\ngovernment's capability to expand the size of their respective
\nmarkets which allowed them to get a larger sales value.<\/p>\n
The survey also indicated that CEOs doubted the government's
\nability to stabilize the economy through its policies which would
\nenable them to keep a lid on their costs.<\/p>\n
They questioned the government's ability to maintain public
\nutilities, including infrastructure for them to run their
\nbusiness, it further said.<\/p>\n
In addition, the survey disclosed that the CEOs were
\npessimistic that the government could create a safe and orderly
\nenvironment for their business.<\/p>\n
The businessmen also felt uncertain about the government's
\ncapability to enforce the law to ensure they were not hurt
\nfinancially by unfair business practices.<\/p>\n
"The government has failed to provide a business environment
\nthat was expanding, stable, supportive, secure, and fair," the
\nresearch agency remarked.(03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/business-sentiment-index-turns-to-pessimistic-1447893297",
"image": ""
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