Business sentiment in Indonesia improving: JETRO

JAKARTA (JP): Japanese investors operating in Indonesia felt their businesses fared better in August, while those in four neighboring countries -- Singapore, Thailand, Malaysia and the Philippines -- thought their businesses worsened, a Japanese trade agency said.

Business sentiments of the Japanese companies in Indonesia improved this month compared to August last year due to "increased demand for transport machinery in both the domestic and overseas market," the Japanese External Trade Organization (JETRO) said on its website, citing the results of its recent survey.

The survey was conducted by the agency along with Japan's Ministry of Economics, Trade and Industry in the first week of the month.

The survey targets all types of Japanese firms operating in Indonesia and the four neighboring countries.

A total of 213 Japanese companies in Indonesia were given questionnaires during the survey, while the numbers of companies surveyed in Singapore, Malaysia, Thailand and the Philippines were 477, 262, 441 and 229 respectively.

Responding firms were requested to select an answer to the question whether business was or would be "better", "the same", or "worse" as concerns business conditions, supply and demand, inventories, selling prices and credit retrieval.

JETRO said Japanese firms in Singapore, Malaysia, Thailand and the Philippines thought their businesses worsened this month due to the decrease in overseas demand for products such as electrical and electronic machinery.

The agency noted, however, that Japanese investors in the five countries thought the prospects for their businesses would worsen in the coming two or three months. (jsk)