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Edelman Trust Barometer 2009 Indonesia 10 Feb 09
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Edelman Trust Barometer 2009 Indonesia 10 Feb 09

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Edelman Trust Barometer 2009 Indonesia is an annual research undertaken to guage the current level of trust for business, government, media, ngo,etc.

Edelman Trust Barometer 2009 Indonesia is an annual research undertaken to guage the current level of trust for business, government, media, ngo,etc.

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  • 1. A Roadmap for Indonesian Business Today February 10, 2009
  • 2. Edelman Trust Barometer at a Glance Tenth edition (first in Indonesia) 4,475 people in 20 countries (including 1,375 people in 6 countries in Asia Pacific & 200 people in Indonesia) Ages 25 to 64 University-educated In top 25% of household income per age group in each country Significant media consumption and follow business news and public policy Survey dates: Nov 5 -Dec 14, 2008 Margin of error: +/- 5%
  • 3. 2008: A year unlike any other Indonesia Composite Index (IHSG): Jan 2008 – Dec 2008 Dow Jones Industrial Average: Jan 2008 – Dec 2008
  • 4. Edelman 2009 Trust Barometer: Key Findings Stakeholders demand Indonesia’s informed stronger relationships publics remain with companies optimistic about based on transparent business communication to build trust Business expected to Call for increased partner with government government and third intervention in and parties in solving regulation of business major global issues 4
  • 5. 1 The State of Trust Despite the recent global crisis, business retains trust in Indonesia “Yang harus dijaga adalah confidence dan trust. Kalau terjadi krisis confidence dan trust, recovery-nya akan panjang.“ “We have to protect confidence and trust. If there is a crisis of confidence and trust, it will take a long time to recover.” – President Susilo Bambang Yudhoyono
  • 6. Emerging vs. Established Economies: A Trust Divide Trust in business <50% among 25-to-64-year-olds Trust in business >50% among 25-to-64-year-olds
  • 7. Indonesia’s informed publics remain optimistic about business % of trust in corporations compared to last year 100% Trust More Trust Less 90% 43% of 77% 80% Indonesians have the same 66% 70% level of trust in 59% 60% corporations 46% 50% 40% 32% 30% 23% 20% 14% 12% 10% 2% 2% 0% Indonesia US Europe BRIC Asia Pacific Q: Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less, a little less, the same, a little more, or a lot more than you did at the same time last year? (Top 2 Box) 25-64 Informed publics 7
  • 8. Media most trusted institution in Indonesia % who trust each institution 100% NGOs Business Media Government 90% 77% 80% Business most trusted NGOs most trusted 70% 63% 62% 57% 56% 57% 55% 57% 60% 52% 51% 50% 46% 45% 45% 50% 43% 42% 39% 36% 40% 31% 30% 30% 20% 10% 0% Indonesia Asia Pacific BRIC Europe US Q: How much you TRUST each institution to do what is right? Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.” Top 4 Box (Informed . publics 25-64 ) 8
  • 9. Contrary to global results, trust in banks in Indonesia is high Global (20 countries) Indonesia 76% Technology 88% 58% Automotive 84% 47% Banks 82% 43% Media companies 80% 65% Biotech/life sciences 78% 53% Pharmaceuticals 77% 55% Energy 73% 54% CPG manufacturers 64% 40% Insurance 58% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q: How much you TRUST businesses in each of the following industries to do what is right? Please use a nine-point scale, where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.” (Top 4 Box) Informed publics 25-64 9
  • 10. In emerging economies, industries that suffer in the West remain trusted Banks Automotive Energy Media companies 100% 90% 82% 84% 80% 80% 73% 72% 72% 69% 70% 67% 70% 64% 57% 60% 53% 52% 50% 44% 39% 36% 40% 34% 32% 27% 30% 20% 10% 2% 0% Indonesia Asia Pacific BRIC US Europe Q: How much you TRUST businesses in each of the following industries to do what is right? Please use a nine-point scale, where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.” (Top 4 Box) Informed publics 25-64 10
  • 11. 2 Government intervention required to maintain trust “Untuk menjaga kepercayaan dan stabilitas sistem keuangan, pemerintah sepakat melakukan pengawasan ketat agar tidak ada tindakan mencari keuntungan sendiri dan menimbulkan kerusakan sistemik terhadap pasar keuangan dan industri pasar modal.” “To retain trust and stability in the financial system, the government agrees to apply stricter monitoring to prevent deals that are made for personal gain or which create systemic damage in the financial markets and stock exchange.” –Sri Mulyani Indrawati
  • 12. 3 out of 4 informed publics agree government should impose stricter regulations and greater control over business across all industries Agree, 76% Disagree, 6% Neither agree nor disagree, Don't know, 1% 16% Q: How strongly you agree or disagree that your government should in the future impose stricter regulations and greater control over business across all industry sectors? Informed publics 25-64 in Indonesia 12
  • 13. Government expected to intervene directly in financial industry 25-34 yo 35-64 yo 100% 90% 81% 80% 70% 56% 60% 50% 44% 40% 30% 17% 20% 10% 0% Government should intervene in the activity of Government should permit the free market to banks and the financial industry using whatever function independently, allowing banks and other means it sees appropriate, including lending money financial institutions to fail or be acquired or guaranteeing deposits Q: Given the recent financial crisis, which one of the following choices comes closest to your view on how your government should respond to prevent future financial crises? Informed publics in Indonesia 13
  • 14. Stricter regulations necessary for financial market and institutions 25-34 yo 35-64 yo 100% 90% 79% 80% 74% 70% 60% 50% 40% 26% 30% 19% 20% 10% 0% Government should intervene to impose stricter Government should permit the free market to regulations and limits on the financial industry and function independently with the minimum banking necessary regulation and oversight Q: And which one of the following choices comes closest to your view on how your government should govern the way financial market and banks operate? Informed publics in Indonesia 14
  • 15. 3 The Business Case for Trust Reputation, Sales, and License to Operate Driven by Trust and Transparency “Ada dua hal pokok yang penting dalam menjalani bisnis sektor perbankan di masa sulit, yakni good corporate governance dan pengawasan.” “Two of the most important things when doing business in the banking sector during difficult times are good corporate governance and monitoring.” – Agus Martowardojo
  • 16. Quality of products/services – combined with social responsibility & communications – paramount to overall corporate reputation Offers high quality products or services 96% Is an innovator of new products, services or ideas 96% Is a company that treats its employees well 95% Creates and keeps jobs in your area 95% Communicates frequently and honestly on its business 95% Has a strong financial future 95% Has a strong commitment to protect the environment 93% Commits time, money and resources to the greater public good 93% Has senior leadership that can be trusted 91% Stays within the spirit and the letter of the law in Indonesia 90% Gives value for money 87% Q: When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important” and nine means it is “extremely important” to overall reputation. (Top 4 Box) 25-64 Informed publics in Indonesia 16
  • 17. Trust has a tangible impact on business Personal actions taken with trusted and distrusted companies – + 77% 89% Refused to buy their products/services Chose to buy their products/services 72% 82% Criticized them to a friend or colleague Recommended them to a friend or colleague 55% Paid a premium for their products/services 34% 44% Shared negative company opinions/experiences online Shared positive company opinions/experiences online 17% 16% Sold shares Bought shares Culture of sharing of positive opinions/ experiences online is more tangible (50%) in young informed (25-34 yr) Q: Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. Q: Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. Informed publics 25-64 in Indonesia 17
  • 18. Indonesian respondents support good and responsible companies seeking changes in local laws Indonesia Asia Pacific BRIC 100% 90% 80% 73% 70% 60% 59% 58% 60% 48% 48% 50% 43% 40% 33% 30% 18% 20% 10% 0% Pursue changes in local laws Seek preferential treatment Have foreign investors take a or changes in planning for tax, employment or controlling interest in local permission environment companies Q: Would you be not at all supportive, not very supportive, neutral, somewhat supportive or very supportive towards a good and responsible company operating in your country taking this action? (Top 2 Box) Informed publics 25-64 in Indonesia 18
  • 19. 4 Who Can We Trust? Trust in Information Sources and Spokespeople “Kejujuran dan keterbukaan selalu menjadi modal utama dalam bisnis apa pun dalam keadaan apa pun. Jika institusi keuangan enggan menyampaikan informasi yang akurat dengan cepat dan jujur, hasilnya adalah krisis informasi dan kepercayaan.” “Honesty and transparency will always be the main capital for any business in any situation. If financial institutions are reluctant to provide accurate information in a quick and open manner, a crisis of information and trust occurs.” – Sandiaga Uno
  • 20. New media rising in influence Advertising least trusted 40% Television news coverage Mainstream media 35% Articles in business magazines 29% News coverage on radio 27% Articles in newspapers 41% Free content online sources 34% Internet search engines, e.g. Google news New media 21% Business blogs 13% Social networking sites, e.g. Facebook 11% Personal or non business blogs or bulletin boards 36% Live communication such as a speech or interview from a company's sr mgmt 33% Corporate communications such as press releases, reports and emails Corporate comm. 32% A company’s own website 11% Corporate or product advertising 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q: Please tell me how credible you believe each source of information when you find information about a company: is it extremely credible, very credible, somewhat credible, or not credible at all? Top 2 Box Informed publics 25-64 in Indonesia 20
  • 21. Academics, industry experts most credible sources of information about a company 100% Indonesia Asia Pacific BRIC 90% 80% 70% 59% 61% 60% 51% 50% 48% 45% 46% 47% 47% 50% 42% 42% 39% 38% 38% 40% 31% 32% 30% 24% 20% 14% 10% 0% An academic or A financial or A person like me A CEO of a Non-profit A regular expert on that industry analyst company organization or employee of a company's NGO company industry or issues representative Q: In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box) Informed Publics 25-64 21
  • 22. Regardless of channel or voice, majority needs to hear message 3-5 times to believe it Don’t know/ Once refused 4% Ten or more times 3% Twice 6% 10% Six to Nine times 9% 3-5 times 68% Four or Five times Three times 24% 44% Q: Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to hear something about a specific company to believe that the information is likely to be true? Please give me a number. 25-64 Informed publics 22
  • 23. Four Global Issues: Who Is Responsible for Causing and Solving? Energy Financial Costs Credit Crisis Access to Global Affordable Warming Healthcare
  • 24. Government and business share the responsibility for causing global issues Government and regulators Businesses NGO 100% 89% 88% 87% 86% 90% 85% 85% 79% 80% 75% 70% 66% 64% 59% 59% 60% 50% 40% 30% 20% 10% 0% Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare Q: How responsible you think each of the following entities are for contributing to global issues such as energy costs, financial credit crisis, global warming, or access to affordable healthcare? (Top 4 Box) 25-64 Informed publics . in Indonesia 24
  • 25. In Indonesia, government held most responsible for solving global issues Government and regulators Businesses All equally 100% 90% 77% 80% 70% 64% 64% 60% 53% 50% 40% 30% 24% 23% 18% 18% 20% 11% 10% 8% 6% 10% 0% Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare Q: Which one entity do you think should be MOST responsible for solving global issues? (Top 4 Box) 25-64 Informed publics in Indonesia . 25
  • 26. But business not absolved: it must partner with others to solve global issues Checks and Balances Global (20 countries) Asia-Pacific Indonesia 100% 90% 82% 80% 66% 70% 65% 60% 50% 40% 33% 31% 30% 16% 20% 10% 3% 2% 2% 0% Partner with governments and Do what it can alone Play no role third parties Q: Thinking about the role that business should play in helping to solve global issues such as energy costs, the financial credit crisis, global warming, or access to affordable healthcare, which of these following three . statements is closest to your view? (Informed publics 25-64) 26
  • 27. What We Have Learned There is call for Indonesia’s informed increased publics remain government optimistic about intervention in and business regulation of business ______ ______ Stakeholders demand Business expected to stronger relationships partner with with companies government and third based on transparent parties in solving communication to major global issues build trust ______ ______ 27
  • 28. THANK YOU
  • 29. A Ten Year Overview of Trust The 2009 Edelman Trust Barometer is the firm’s 10th trust and credibility survey The survey was produced by research firm StrategyOne. The survey consisted of 30-minute telephone interviews conducted in November – December 2008 For the first time, the survey sampled two different age groups concurrently (25-34 and 35-64) For more information on the Edelman Trust Barometer and to view past results, please visit www.edelman.com/trust