Foreign investor confidence in Indonesia is still high. (Credit : CNN)

Eurocham: 60% of European investors still believe the climate in Indonesia

Siti Fatimah Adri
Market & Investment
Market Trending
Aug 12, 2019
2190
Although Indonesian economy is currently facing many challenges, it turns out that foreign investor confidence is still quite high. This was revealed by European Chamber of Commerce and Industry (Kadin) in Indonesia (EuroCham) based on the results of their business confidence index (BCI) research conducted on 780 investors from 9 to 26 May 2019.

The survey results show 60 percent of European investors surveyed said they still have high confidence to invest in Indonesia.
This is indeed quite surprising, cause Morgan Stanley's research has estimated that Indonesia's economy could only reach 5 percent this year. This is lower than prediction in April which reached 5.3 percent, same level as the government's target in 2019 State Budget (APBN). This decline is due to a trade war between United States (US) and China.

BritCham Honorary Secretary Nick Holder said that there were several sectors whose index of business confidence in European investors rose. Namely infrastructure whose index increased slightly by 1 percent to 76 percent, education sector which reached 55 percent or increased 9 percent compared to before and private sector that reached 56 percent, up 5 percent compared to before.

Even so, Nick admitted the index of business confidence in several sectors fell. Such as hospitality which fell 9 percent to 68 percent and food & beverage sector which fell 5 percent to 63 percent. The decrease occurred because of terrorist issue.

Source: https://www.cnnindonesia.com/ekonomi/20190809134104-92-419858/investor-eropa-masih-percaya-dengan-iklim-investasi-ri