Indonesian Traders To Be Among The Most Confident, Says HSBC Survey
***Being the most confident compare to its peers in Southeast Asia***
*** China continues to be main trading destination***
 

HSBC survey reveals Indonesian traders is among the most confident countries after India and UAE. Despite the decrease of its confidence level (from 128 to 124), Indonesian traders remain to be the most confident compare to its peers in Southeast Asia. The confidence level of Indonesian exporters and importers are robust, albeit slightly less bullish than the first semester. In the survey’s presentation conducted today in Jakarta, Vincent C. Sugianto, Senior Vice President, Head of Trade and Supply Chain HSBC Indonesia also highlighted that traders from Indonesia continue to be most optimistic about trade prospects with Greater China and South East Asia in the next six months.

Traders globally continue to expect trade volumes and trade finance requirements to either increase or be at current levels in the next 6 months. Traders in India (140), UAE (125), Indonesia (124) and Mexico (124) are most bullish about trade prospects in the next 6 months; followed by Vietnam (122), Brazil (122), Saudi Arabia (118), Malaysia (114) and China (111). As the third most confident globally, Indonesian traders’ optimism was indicated by expectation in the increasing of trade volume (51%), decreasing of buyers’ (31%) as well as supplier’s (30%) risk, and growing global economy (51%). The mature markets of Canada, Australia, US, Europe and Hong Kong are still within the positive range, demonstrating improved confidence around the globe.

Vincent C. Sugianto said: “Indonesia as well as the global trade confidence remains securely in positive territory despite prolonged uncertainty in developed markets and more tempered growth in the emerging world. The new trade paradigm is characterized by stronger prospects of emerging markets trading with each other and intra-regional trade as the lynchpin of global trade momentum. The positive sentiment that we see across all markets is a significant indicator that trade remains one of the main drivers of economic growth globally.”

The HSBC Trade Confidence Index covers a total of 17 markets in the Asia-Pacific region, the Middle East, Latin America, the US and Canada and Europe. It is the largest trade confidence survey globally. The current survey comprises six-month views of 5,124 exporters, importers and traders from small and mid-market enterprises on: trade volume; buyer and supplier risks; the need for trade finance; access to trade finance; and the impact of foreign exchange. The results used to calculate an index range from 0 to 200, with 200 as the highest confidence level, 0 represents the lowest and 100, neutral.

Although decreased from 51%, latest survey shows that China continues to be top trading destination, with 44 percent of the respondent are currently having trade relation with China businessman. Latest survey also suggested that Indonesian traders plan to slowly shift its destination to Southeast Asia. Aside from China, in the next 6 months Southeast Asian countries will also being one of main cross border trade destination. Whilst other Asian countries look for intra Asian trade as promising destinations, Indonesia traders also look opportunity to central and east Europe.

The findings of HSBC’s bi-annual global trade survey point that Indonesian traders expect a slight decrease in buyer and supplier risk; and rely on different payment method with their counterpart to overcome non-payment risk. Bullish outlook on cross border trade transaction in the next six month also impact to their increasing need of trade finance. Sixty four percent of the respondent says that their need of trade finance will increase and expects to fund their needs from either self-funded or trough buyer support.

Further commenting on the result, Vincent said, “The survey gives us a snap shot on the current condition of Indonesian traders. In managing their cross border trade business, Indonesian exporters and importers haven’t utilized all channels available. The role of banks and financial institutions haven’t been considered to support cross border activities, in reducing transaction risk or providing trade finance”

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For further media enquiries please contact:
Devi Kusumaningtyas: +6221 3040 5394/ 0817 9947 935 or email to: devikusumaningtyas@hsbc.co.id

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