Business people are optimistic, but still wary of the global economy

BUSINESS CONFIDENCE - JAKARTA. The 2019 general election has ended. The KPU has set the pair Joko Widodo - Ma'ruf Amin as a candidate for President and Vice President of the Republic of Indonesia.

Entrepreneurs welcomed this national political development optimistically. This optimism is reflected in the KONTAN CEO Confidence Index (KCCI) in 2019.

Despite their optimism, the CEO index score in the third quarter of this year touched the lowest position in the past year. In general, business confidence dropped to 3.53.

KCCI is an index compiled through a survey by KONTAN on 30 leading presidents and chief executive officers (CEOs) in Indonesian companies. These companies represent various fields of business. Scores above 3 indicate optimism, and numbers below 3 mean pessimism.

"Business people look forward to future government positively. We look forward to a clearer signal about the new government cabinet team," President Director of PT Tigaraksa Satria Tbk (TGKA) Lianne Widjaja told KONTAN last week.

Several entrepreneurs who responded to this survey provided critical notes about macroeconomic conditions and the global economic outlook.

In May 2019 Indonesia indeed recorded a trade surplus of US $ 207.6 million. However, they cautioned that the trade balance in June is still vulnerable. Indonesian exports have always relied on commodity exports, especially palm oil and coal.

The prices of these two commodities are volatile and are currently weakening. "There is still an uncertain global economic impact, especially from oil and gas prices. The current account deficit is still threatening," said President Director of PT Aneka Gas Industri Tbk (AGII) Rachmat Harsono.

However, Rachmat hopes that Standard & Poor's (S & P) will increase Indonesia's long-term credit rating to improve business prospects in the country. "Increasing rankings can help entrepreneurs get better interest," Rachmat said.

President Director of PT Kalbe Farma Tbk (KLBF) Vidjongtius sees Indonesia can take advantage of the escalation of trade wars between the US and China. "Indonesia must increase the attractiveness of foreign investors with a breakthrough in employment and ease of regulation," he said.