July business confidence down on election worries<\/p>\n
Bloomberg, Jakarta<\/p>\n
Indonesia's Business Sentiment Index fell in July from May as
\npolitical risk increased during the country's first direct
\npresidential election, a bimonthly survey showed.<\/p>\n
The gauge, which measures business confidence, fell to 113.1
\nat the end of July from 113.4 two months earlier, according to
\nStefanus Susanto and David Sumual, analysts at Danareksa Research
\nInstitute, which commissioned the AC Nielsen bimonthly study of
\nbetween 650 and 750 chief executives.<\/p>\n
Indonesia held the first round of the presidential election on
\nJuly 5 after four weeks of campaigning. Incumbent Megawati
\nSoekarnoputri and Susilo Bambang Yudhoyono, a former cabinet
\nminister, won the most votes in that round to contest a second,
\ndecisive round of balloting on Sept. 20.<\/p>\n
\"June was a campaigning month, filled with wariness of
\npossible street violence, while July was the unparalleled
\nelection month,\" the analysts wrote in a report. \"CEOs were
\ncautious of exercising major decision as risks from the political
\narena mounted.<\/p>\n
The Expectations Index, which measures the executives'
\nappraisal of near-term business conditions, fell to 119.4 from
\n119.8.<\/p>\n
Based on the latest official tally of votes, Yudhoyono is
\npoised to become the country's sixth president. He has won 61
\npercent of the 110.4 million votes counted so far to Megawati's
\n39 percent. More than 153 million Indonesians were eligible to
\nvote in the Sept. 20 election.<\/p>\n
Danareksa's survey<\/p>\n
Index July May<\/p>\n
Business sentiment index 113.1 113.4<\/p>\n
Present situation index 106.8 107.0<\/p>\n
Economic conditions 68.7 69.3<\/p>\n
Business conditions 115.6 115.5<\/p>\n
Company conditions 136.2 136.1<\/p>\n
Expectations index 119.4 119.8<\/p>\n
Economic prospects 92.2 92.4<\/p>\n
Business prospects 124.8 125.0<\/p>\n
Company prospects 141.2 142.1<\/p>\n
Business confidence in government index 87.8 88.9<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/july-business-confidence-down-on-election-worries-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }