DEKA & SWA 2017 Business Prediction Survey

04 May DEKA & SWA 2017 Business Prediction Survey

DEKA and SWA always conduct business prediction survey for the last 10 years, and this is our 11th time doing survey with SWA. Conducted on 9th November – 16th December 2016 this survey was aimed to capture the optimism level from corporate leaders about condition and prospect of business on 2017.

Respondent Profile

We asked 100 respondents within various levels and business background, from CEO/Main Director (58%) to Business Development Directior/Strategic Planning (42%), and also from transportation, logistic & shipping, manufacture, banking, and service and property industry. And from 63% of our respondents was represent business that has revenue around 100-250 billion rupiah, 16% from business with revenue more than 250-500 billion rupiah, 13% has revenue more than 500 billion rupiah up to 1 trillion rupiah, and 8% from business with revenue more than 1 trillion rupiah. Most of our respondents (73%) is a leader of local company, 14% was a regional company (ASEAN), and 13% from multinational company.

Optimistic: 2017, it will be better

The survey result as our Associate Director DEKA Marketing Research Mr. Ahmadi told, those business leaders believe that 2017 will be better than 2016. With 53% on optimistic category, 27% on realistic and 20% is on cautious category. There are three main factors that build our respondent optimism towards 2017 which are economic growth (56%), political stability (38%) and law enforcement (6%).

About political condition on 2017, according to 52% of our respondents, it will be better than last year despite situations around PILKADA, they pretty sure about the political condition will be stable. And when we talk about economic situation on 2017, more than 50% of our respondents believe it will be better, they appreciate what Mr.President Joko Widodo did for the last 2 years. 68% of respondent said that the team behind economic regulation under President Joko Widodo is reliable. Furthermore, tax amnesty policy make business leader more optimistic since it will add source of funding for the government.

Business Strategy

This survey also capture about how our respondent will implement their business strategy in 2017. On Human Capital section, the strategy is to increase competence for employee through various workshop and seminar, and also training on management subject about business and leadership strategy for employee on managerial level. For strategy on production, many companies were doing R&D so they can launch newest product with latest innovation for the market.

As for example, the phenomenal “Teh Pucuk Harum” from Mayora is a result from product and business innovation. On 2016 itself, they grow almost 43% for non-cup jasmine tea segment. Other success story comes from Honda Prospect Motor (HPM). On 2016, their sales are growing 25% because they continuously improve on new product innovation such as SUV (Sport Utility Vehicle) HR-V and CRV, and also low MPV (Multi-Purpose Vehicle) Mobilio.

Summary

According to our technical advisor, Mr. Rahim Jabar, the optimism among business owner can be reflected from their strategy to faced year 2017. For example strategy to invest on factory/production area expansion, re-new their production tools, improvement on software, these investment were increase around 5%-10% compared to last year. Besides that, they also planned to strengthen their position in the market by doing improvement on human capital area. They also wanted to expand their market and network by creating new products or increase quality on their old products.

But still, we need to be cautious. Moreover, global economic condition or even China hasn’t fully restored yet and it can have a side effect to our economy. And also with the new US President, Mr. Donald Trump, we need to be more aware on foreign economy policy that might change global or even local business landscape.

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