THE CPA AUSTRALIA
ASIA-PACIFIC
SMALL BUSINESS
SURVEY 2015
INDONESIA REPORT
2 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
LEGAL NOTICE
CPA Australia Ltd (‘CPA Australia’) is one of the world’s largest accounting bodies, representing more than 155,000 members of the financial,
accounting and business profession in 118 countries.
ISBN: 978-1-921742-72-9
For information about CPA Australia, visit our website cpaaustralia.com.au
First published 2016
CPA Australia Ltd
ACN 008 392 452
Level 20, 28 Freshwater Place
Southbank Vic 3006
Australia
Copyright © CPA Australia Ltd (ABN 64 008 392 452) (‘CPA Australia’), 2016. All rights reserved. CPA Australia owns all copyright in these materials or uses it
under licence or applicable law. For permission to reproduce any material, a request in writing is to be made to the Legal Business Unit, CPA Australia Ltd, Level
20, 28 Freshwater Place, Southbank, Victoria 3006 Australia.
DISCLAIMER
CPA Australia has used reasonable care and skill in compiling the content of these materials. However, CPA Australia makes no warranty that the materials are
accurate and up to date. These materials do not constitute the provision of professional advice whether legal or otherwise. Users should seek their own
independent advice prior to relying on or entering into any commitment based on the materials. The materials are purely published for reference purposes alone.
CPA Australia, their employees, agents and consultants exclude completely all liability to any person for loss or damage of any kind including but not limited to
legal costs, indirect, special or consequential loss or damage (however caused, including by negligence) arising from or relating in any way to the materials and/or
any use of the materials. Where any law prohibits the exclusion of such liability, then to the maximum extent permitted by law, CPA Australia’s liability for breach of
the warranty will, at CPA Australia’s option, be limited to the supply of the materials again, or the payment of the cost of having them supplied again.
3 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
OVERVIEW
CPA Australia Asia-Pacific Small Business Survey 2015 is the sixth in a series of annual reports measuring small
business confidence, the drivers of confidence, technology uptake and access to finance by small businesses. The
data is compared across the eight economies included in this survey and over time.
In total, 2932 participants completed the survey, including 510 from Australia, 610 from Mainland China, 265 from
Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310 from
Vietnam.
The online survey was conducted with a random sample of small business owners/managers between 24
September and 14 October 2015. The sample was obtained through panel providers. To qualify for the survey,
participants were required to be an owner, a senior manager (defined as being a director, a principal, a CEO, a
CFO, a senior manager or a managing director) or a qualified accountant of a business with fewer than 20
employees.
4 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
SUMMARY OF INDONESIA RESULTS
Indonesia’s small businesses are the most positive, innovative and focused on digital
technologies of the eight markets surveyed.
CPA Australia’s Asia-Pacific Small Business Survey reveals that the outlook for Indonesia’s economy and small
business sector is very positive and this should persist for some time given the very strong focus by Indonesia’s
small businesses on innovation, exploiting digital technologies and exporting.
This focus is flowing through to business growth, with the number of small businesses from Indonesia that reported
growing in the past 12 months rising 15.2 percentage points (to 91.2 per cent) in this survey from the last, the
highest reading of the markets surveyed and well above the survey average of 68.2 per cent. This very strong
growth sentiment is expected to continue in 2016, with 92.5 per cent expecting to grow in the next 12 months
(again, well above the survey average of 70.7 per cent).
With Indonesia’s economy being impacted by a number of negative external factors, including slowing growth in
China, weak recoveries in the economies of the US, Japan and the euro area, and weak commodity prices, the
strong increase in the number of small businesses that reported growing in the past 12 months shows the
resilience of Indonesia’s small businesses.
Such resilience and their focus on innovation, exporting and digital technologies should mean that Indonesia’s
small businesses are well placed to take advantage of improvements in the global economy and recent initiatives
by Indonesia’s government designed to encourage business activity.
This strong growth is translating through to the sector being a large creator of jobs, with two-thirds of Indonesia’s
small business sector increasing the number of their employees in the past 12 months, up from 48.9 per cent in
2014 and well above the survey average of 33.1 per cent.
The survey results clearly show that there are very good reasons to be confident in the future, with Indonesia’s
small businesses being the most likely to expect to undertake innovation through the definite introduction in the
next 12 months of a new product, service or process that is unique to Indonesia or the world (45.8 per cent of
Indonesian small businesses compared with the survey average of 22.0 per cent).
Indonesia’s small businesses also lead the survey results when it comes to:
 growing their e-commerce presence (86.3 per cent of Indonesia’s small businesses expect to grow their ecommerce presence to a large extent in the next 12 months compared with the survey average of 32.2 per cent)
 growing revenue from overseas markets (57.8 per cent of Indonesia’s small businesses expect their revenue
from overseas to grow strongly in the next 12 months compared with the survey average of 19.1 per cent)
 generating revenue from online sales (93.8 per cent of Indonesia’s small businesses reported earning some
revenue from online sales compared with the survey average of 68.9 per cent).
This strong focus on innovation, e-commerce and exporting means that Indonesia’s small businesses are in a good
position to outcompete their less nimble and tech-savvy competitors and remain competitive against rivals from
fast-growing neighbouring economies.
The Indonesian government’s new emphasis on policies designed to stimulate innovation-led growth should further
inculcate a culture of innovation and entrepreneurship in small businesses. Such a culture is fundamental to
Indonesia’s future prosperity.
5 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
With the survey results demonstrating that small businesses that are innovating are more likely to be growing and
creating jobs, this is clearly the right policy approach.
Indonesia’s small businesses are not only growing very strongly, creating jobs and preparing for the future – they
are in many respects shaping the future.
Other results from the survey
ASEAN Economic Community
 A large majority of Indonesia’s small businesses (84.0 per cent) expect that the creation of the ASEAN
Economic Community will have a positive impact on their business, the highest percentage amongst the four
ASEAN nations included in this survey.
Demographics
 Respondents to the survey are typically aged below 40 (79.4 per cent) and the business is 10 years old or less
(75.2 per cent).
 There is a strong correlation between younger business owners and those businesses that expect to grow, sell
online, use social media for business purposes, and innovate through the introduction of new products,
processes or services.
Improved business management
 Indonesia’s small businesses were more likely to state that improved business management had a major
positive impact on their business in the past 12 months than the survey average (33.3 per cent compared with
the survey average of 25.4 per cent).
Access to finance
 Indonesian small businesses that sought finance in the past 12 months were more likely to find the experience
easier than any of the other markets surveyed (60.6 per cent found access to finance easy or very easy in this
survey compared with the survey average of 47.6 per cent).
 The more confident business environment most likely contributed to an increase in the percentage of
Indonesian small businesses that required finance over the past 12 months (86.3 per cent required external
funds in the past 12 months against 78.4 per cent in the last survey).
 Funding business growth remains the most important reason for accessing external finance.
6 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
MAJOR FINDINGS FOR INDONESIA
Indonesia’s small businesses, with their very strong focus on innovation, are well
placed to grow, create jobs and export in 2016 and beyond.
With small businesses with an e-commerce presence being more likely
to be growing and creating jobs, Indonesia’s very strong focus on ecommerce is a distinct competitive advantage for its business and the
economy.
With small businesses that expect to grow revenue from exporting
being more likely to be growing and creating jobs, Indonesia’s very
strong focus on exporting is a distinct competitive advantage.
With the survey results showing a strong connection between
social media use and business growth, the very strong uptake of
social media by Indonesia’s small businesses is a competitive
advantage.
Reflecting strong business conditions, over seven in ten of
Indonesia’s small businesses plan to increase their headcount in
2016.
Growth prospects for Indonesia’s small businesses in 2016 remains very
high.
The ASEAN Economic Community expected to have a positive influence on small
business across the ASEAN region.
7 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
KEY SURVEY FINDINGS FOR INDONESIA
INNOVATION
Indonesia’s small businesses, with their very strong focus on innovation1, are well
placed to grow, create jobs and export in 2016 and beyond.
Small businesses that in the next 12 months will definitely introduce a new product, service or
process that is unique to their market or the world2
Indonesia
45.8%
China
31.6%
Malaysia
29.0%
Vietnam
26.1%
Hong Kong
17.7%
Singapore
New Zealand
Australia
1
15.2%
6.8%
5.1%
Innovation, for the purpose of the survey, is taken to be the introduction of a new product, service or process that is unique to a market or the
world.
2
All data for China excludes Hong Kong, which is shown separately.
8 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
The relationship between innovation and jobs creation, business growth and exporting
Percentage that expect to
definitely introduce a
product, service or
process that is new to
their market or the world
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly in the next 12 months
NOT expecting to grow their revenue from overseas sales in the next 12 months
9 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
With Indonesia’s small businesses being by far the most likely to definitely expect to innovate in the next 12
months, small businesses from the nation are well placed to grow and outcompete their rivals from home and
elsewhere.
With the survey results showing innovative businesses are significantly more likely to be growing, exporting and
creating jobs, it is easy to see why Indonesia’s government has an emphasis on policies designed to stimulate
innovation, including expanding its higher education sector. As a recent OECD paper on innovation stated, ‘in the
long run, it is difficult to imagine growth without innovation’.
The OECD estimates that innovation can contribute up to 50 per cent of economic growth depending on the
country, the level of economic development and the phase of the economic cycle. Such an estimate highlights why
3
Indonesia’s government is absolutely right to have innovation as an important policy focus.
Businesses are also more likely to definitely expect to undertake innovation through the introduction in the next 12
months of a new product, service or process that is unique to their market or the world if they:
 have a business owner/manager aged under 40
 have between 5 and 19 staff
 are in the banking, finance and insurance sector, or the manufacturing sector.
KEY FINDING
Indonesia’s small businesses, with their very strong focus on innovation, are well placed to grow, create jobs and
export in 2016 and beyond. We suggest that those Indonesian small businesses that are not innovating should
consider making innovation a part of their business strategy.
3
OECD Innovation Strategy An Agenda for Policy Action, OECD Publishing, Paris, 2015, p. 4
10 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
E-COMMERCE
With small businesses with an e-commerce presence being more likely to be growing
and creating jobs, Indonesia’s very strong focus on e-commerce is a distinct competitive
advantage for its business and the economy.
Small business that generated revenue from online sales – by market4
Indonesia
93.8%
China
90.1%
Vietnam
85.1%
Hong Kong
80.4%
Malaysia
73.2%
Singapore
63.6%
New Zealand
37.0%
Australia
33.0%
Small business that intend to grow their e-commerce presence to a large extent in the next 12
months – by market5
Indonesia
86.3%
Hong Kong
42.6%
China
36.4%
Malaysia
35.2%
Vietnam
33.5%
Singapore
New Zealand
Australia
4
5
19.4%
9.6%
8.2%
All data for China excludes Hong Kong, which is shown separately.
All data for China excludes Hong Kong, which is shown separately.
11 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
The relationship between e-commerce and business growth, jobs creation and exporting
Percentage that expect to
grow their e-commerce
presence to a large
extent
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly over the next 12 months
NOT expecting to sell into overseas markets in the next 12 months
12 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
Small businesses from Indonesia are the leaders in generating revenue from online sales. This advantage is likely
to grow, as Indonesia’s small businesses are by far the most likely to expect to grow their e-commerce presence
strongly in the next 12 months.
With the survey results showing that small businesses that are selling online and seeking to grow their e-commerce
presence are significantly more likely to be growing and creating jobs, it is easy to see why many of Indonesia’s
small business have a strong focus on e-commerce.
The focus on e-commerce should also assist Indonesia’s small businesses reduce the impact that rent has on their
business, as it could allow them to reduce the floor space they need, particularly in high rental locations. It could
also allow them to better connect with customers, many of whom are becoming increasingly familiar with
purchasing goods and services online.
While online sales are not relevant for all businesses, when you combine the results that show a strong connection
between e-commerce and growth, and growing digital penetration and literacy of customers, the data suggests it
would be wise for all businesses to investigate establishing and growing their e-commerce presence.
Small businesses are also more likely to earn income from online sales where:




the business has between 5 and 19 staff
the business has been established for less than 21 years
the respondent is aged under 40
the business is in the manufacturing sector.
KEY FINDING
The very strong focus by many of Indonesia’s small businesses on e-commerce is a key competitive advantage
for those businesses and the economy.
13 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
SMALL BUSINESS AND EXPORTING
With small businesses that expect to grow revenue from exporting being more likely to
be growing and creating jobs, Indonesia’s very strong focus on exporting is a distinct
competitive advantage.
Small businesses expecting revenue from overseas sales will grow in the next 12 months – by
market6
Indonesia
China
57.8%
15.7%
Vietnam
46.1%
19.7%
Hong Kong
40.6%
22.3%
Singapore
Malaysia
24.2%
17.7%
15.7%
15.7%
New Zealand
7.1%
Australia
6.1%
32.8%
15.7%
16.4%
13.3%
Grow strongly
6
All data for China excludes Hong Kong, which is shown separately.
Grow a little
14 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
The relationship between exporting, and jobs creation and business growth
Percentage that expect
their revenue from
exporting to grow
strongly
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
Indonesia’s small businesses lead the survey when it comes to exporting, with the number of Indonesian small
businesses expecting to strongly grow their revenue from exporting over the next 12 months far exceeding other
markets in this survey. Given the weak environment in a number of key export markets including the US, China, the
euro area and Japan, this is a good result.
With the survey results showing that small businesses that are exporting are more likely to be growing and creating
jobs, this very strong export focus is a competitive advantage for Indonesia’s small businesses and the economy
more broadly.
While an export focus does come with risks, including foreign exchange risks and the potential for downturns in key
markets, the advantages of exporting over focusing on the domestic market are significant. A focus on the
domestic market limits growth potential and increases the business’s risk exposure should the local economy slow.
It also means that the business may be less exposed to competitive pressures, which the survey results show may
have a negative impact on innovation and growth. Further, the business may be less exposed to new ideas from
new markets, which may also negatively impact innovation.
15 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
With the survey results showing a strong link between increasing revenue from exporting and business growth and
jobs creation, it is easy to see why governments across the region are taking action to support and encourage
international trade with initiatives such as the creation of the ASEAN Economic Community.
Small businesses are also more likely to expect strong growth in their earnings from overseas in the next 12
markets if:




the business is in the manufacturing sector
the business has between 5 and 19 employees
the respondent is aged under 50
the business has been established for less than 21 years.
KEY FINDING
The very strong focus of Indonesia’s small businesses on exporting is a competitive advantage for them and the
economy.
16 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
SOCIAL MEDIA
With the survey results showing a strong connection between social media use and
business growth, the very strong uptake of social media by Indonesia’s small
businesses is a competitive advantage.
Small businesses that used social media in their business – by market7
China
97.2%
Vietnam
96.5%
Indonesia
96.0%
Hong Kong
93.2%
Malaysia
88.2%
Singapore
New Zealand
Australia
79.6%
56.5%
50.2%
With the survey results showing a connection between social media use for business purposes and business
growth, the very strong uptake of social media amongst Indonesia’s small businesses gives them a competitive
advantage, particularly over businesses from Australia and New Zealand where the number of small businesses
using social media is significantly lower.
With customers being increasingly likely to seek to communicate and transact with businesses via social media, a
robust social media presence should enhance a small business’s ability to attract, retain and transact with
customers. It may also enhance their brand reputation and assist them to grow their business.
Those that use social media use it for a variety of purposes including communicating with existing customers,
promoting their business to potential customers, and selling their products or services.
Small businesses are significantly less likely to be using social media for business purposes where:
 the respondent is aged 50 or over
 the business has been established for over 20 years
 the business has four or fewer staff.
7
All data for China excludes Hong Kong, which is shown separately.
17 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
KEY FINDING
With small businesses using social media being more likely to grow, the large-scale adoption of social media by
Indonesia’s small businesses is a competitive advantage that should help generate future growth.
18 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
JOBS AND SMALL BUSINESSES
Reflecting strong business conditions, over seven in ten of Indonesia’s small businesses
plan to increase their headcount in 2016.
Small businesses that plan to increase employee numbers in the next 12 months – by market8
Indonesia
71.2%
Vietnam
66.1%
China
55.2%
Malaysia
46.8%
Hong Kong
32.8%
Singapore
New Zealand
Australia
8
27.7%
19.9%
16.7%
All data for China excludes Hong Kong, which is shown separately.
19 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
Relationship between jobs creation and business growth, innovation, exporting and e-commerce
Percentage that expect to
increase employee
numbers in the next 12
months
BUSINESS GROWTH
Expecting to grow in the coming 12 months
NOT expecting to grow in the coming 12 months
INNOVATION
Definitely expecting to introduce a new product, service or process unique to their
country or the world
NOT expecting to introduce a new product, service or process unique to their country
or the world
EXPORTING
Expect to grow export revenue strongly
NOT expecting to sell into overseas markets
20 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
E-COMMERCE
Expect to grow their e-commerce presence to a large extent
NOT expecting to grow their e-commerce presence
The increase in the number of Indonesian small businesses that are expecting their business to grow in 2016 from
2015 is having a positive impact on jobs, with 71.2 per cent of small businesses planning to increase employee
numbers in the next 12 months.
Other factors contributing to this very healthy jobs growth projection is the very strong focus on innovation, ecommerce and exporting by Indonesia’s small businesses.
Over the next 12 months, businesses that expect to increase employee numbers are also significantly more likely
to:
 intend to significantly increase their e-commerce presence
 strongly grow their revenue from overseas sales
 innovate through definitely introducing a new product, service or process.
Small businesses are also more likely to expect to increase employee numbers over the next 12 months if:
 the business is in the manufacturing, accommodation or food services industries
 the business has between 5 and 19 staff
 the respondent is aged under 40.
KEY FINDING
Indonesia’s small business sector should continue to be a large creator of jobs.
21 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
BUSINESS AND ECONOMIC CONDITIONS
Growth prospects for Indonesia’s small businesses in 2016 remains very high.
Small businesses that grew over the past 12 months – by market9
Indonesia
57%
Vietnam
34%
63%
China
26%
70%
Malaysia
8%
55%
Hong Kong
14%
51%
Singapore
12%
49%
New Zealand
9%
41%
Australia
15%
32%
13%
Grown A Little
Grown Strongly
Small businesses that expect their business to grow in the coming 12 months, 2009 to 2015 – by
market
100%
90%
Vietnam
80%
Mainland China
Singapore
70%
New Zealand
60%
Malaysia
50%
Hong Kong
Indonesia
Australia
40%
30%
2009
9
2010
2011
2012
2013
All data for China excludes Hong Kong, which is shown separately.
2014
2015
22 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
Small businesses that expect their local economy to grow over the next 12 months, 2011 to 2015
– by market
100%
90%
80%
Australia
Hong Kong
70%
Indonesia
60%
Malaysia
New Zealand
50%
Singapore
Mainland China
40%
Vietnam
30%
20%
2011
2012
2013
2014
2015
Small businesses from Indonesia are the second most likely to expect their business to grow in the next 12 months,
with over nine in ten (92.5 per cent) expecting to grow, a 10.2 percentage point increase from their forecast for
2015 and well above the survey average of 70.7 per cent.
Small businesses in Indonesia were also the second most likely to expect their local economy to grow, with over
eight in ten (83.7 per cent) expecting Indonesia’s economy to grow in the next 12 months, a 5.4 percentage point
decrease from their forecast for 2015, but well above the survey average of 61.1 per cent.
Both of these forecasts demonstrate the resilience of Indonesia’s small business sector in the face of a range of
external pressures including China’s slowing growth (although it remains very robust), uncertainty over US interest
rates, weaker commodity prices, and weaker than expected recoveries in the economies of the US, Japan and the
euro area.
Small businesses that expect to innovate, grow their e-commerce presence to a large extent and strongly grow
revenue from exports are significantly more likely to expect their business to grow in the next 12 months. In
addition, small businesses are more likely to expect to grow if:
 they have between 5 and 19 employees
 the respondent is aged under 50
 the business reported growing in the past 12 months.
Further, small businesses are more likely to expect their local economy to grow if:
 they have between 5 and 19 employees
 they are in the manufacturing, property or construction sector
 the respondent is aged under 40.
23 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
KEY FINDING
Confidence amongst Indonesia’s small businesses in 2016 is very high despite external pressures.
24 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
ACCESSING FINANCE
Access to finance remains relatively easy for Indonesia’s small businesses.
Access to finance – the percentage that experienced easy to very easy financing conditions in
the previous 12 months10
2015
2014
Indonesia
60.6%
Indonesia
56.3%
China
59.3%
New Zealand
53.7%
Australia
54.3%
Australia
48.1%
New Zealand
50.0%
China
33.4%
Hong Kong
43.5%
Malaysia
32.3%
Singapore
34.1%
Vietnam
32.0%
Malaysia
31.8%
Singapore
30.9%
Vietnam
29.7%
Hong Kong
29.9%
Access to finance remains significantly more likely to be easy than difficult for Indonesia’s small businesses. These
relatively easy financing conditions could be having some impact on the demand for finance, with 86.3 per cent of
small businesses requiring funds from an external source in 2015, up from 78.4 per cent in 2014. The Australian
and New Zealand results, however, demonstrate that relatively easy access to finance does not necessarily
translate into increased demand for finance.
Banks are the most popular source of finance for Indonesia’s small businesses, followed by investors. Indonesian
small businesses are the most likely to source finance from an investor.
The Indonesian paradox of borrowing for both growth and survival continues to be evident in this survey.
Indonesian small businesses are among the most likely to have borrowed for growth and the most likely to have
borrowed for business survival. In contrast, fellow high-growth nation Vietnam is also highly likely to have borrowed
for growth over the past 12 months but the least likely to have borrowed for survival.
KEY FINDING
Access to finance remains relatively easy for Indonesia’s small businesses, which may be helping to fuel
business growth.
10
All data for China excludes Hong Kong, which is shown separately.
25 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
SMALL BUSINESS AND THE ASEAN ECONOMIC
COMMUNITY
The ASEAN Economic Community expected to have a positive influence on small
business across the ASEAN region.
Expected impact of the creation of the ASEAN Economic Community on small businesses in
Indonesia, Malaysia, Singapore and Vietnam
13.4%
Very positive
50.0%
Positive
Small businesses in Indonesia, Malaysia, Singapore and Vietnam are most likely to expect the establishment of
the ASEAN Economic Community (AEC) to have a positive impact on their business. Small businesses in
Indonesia and Vietnam are especially positive about the AEC, while Singaporean small businesses were the most
likely to believe it will have no impact or that it is too early to tell.
Larger small businesses, manufacturing businesses and businesses that were established between five and ten
years ago are the most likely to see the formation of the AEC as having a positive impact on their business.
Businesses that are expecting strong growth in export revenue over the coming 12 months are also significantly
more likely to state that the AEC will have a very positive impact on their business.
Very few businesses think the AEC will have a negative impact on their business, while some are still undecided.
KEY FINDING
The ASEAN Economic Community is a positive initiative for businesses across the ASEAN region and should
improve business and economic performance for member nations.
26 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
APPENDICES
INDONESIA DATA SNAPSHOT
Business and economic growth
Indonesian small businesses that expect their
business to grow against small business growth
expectations for Indonesia's economy
Small businesses that expect their business to
grow - Indonesia against survey average
90%
90%
70%
70%
50%
50%
30%
2011
30%
2011
2012
2013
Survey average
2014
2012
2013
2014
2015
2015
Expect local economy to grow
Indonesia
Expect their business to grow
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Businesses that grew in the last 12 months
91.2%
1/8
76.0%
1/8
68.2%
Businesses that expect to grow in the next 12
months
92.5%
2/8
82.3%
1/8
70.7%
Businesses that expect the local economy to
grow in the next 12 months
83.7%
2/8
89.1%
1/8
61.1%
27 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
Business activity over the past 12 months
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Increased employee numbers
66.3%
1/8
48.9%
2/8
33.1%
Improved business management had a major
positive impact on their business
33.3%
2/8
N/A
N/A
25.4%
Increasing costs had a major negative impact on
their business
36.9%
5/8
N/A
N/A
39.0%
Required funds from an external source
86.3%
1/8
78.4%
3/8
59.9%
Found it easy or very easy to access external
finance
60.6%
1/8
56.3%
1/8
47.6%
Sought external funds for business growth
64.0%
2/8
52.0%
5/8
56.3%
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Expect to increase employee numbers
71.2%
1/8
69.4%
1/8
41.8%
Definitely expect to introduce a new product,
service or process unique to their country or the
world
45.8%
1/8
N/A
N/A
22.0%
Expect to grow their e-commerce presence to a
large extent
86.3%
1/8
N/A
N/A
32.2%
Expect revenue from overseas markets to grow
strongly
57.8%
1/8
N/A
N/A
19.1%
Expect to significantly increase spending on
marketing and promotion
49.7%
1/8
N/A
N/A
22.8%
Expect to grow their investment in assets
strongly
64.1%
1/8
N/A
N/A
23.1%
Definitely will seek external funds
45.8%
2/8
25.9%
4/8
29.2%
Expect easy to very easy access to finance
59.7%
1/8
54.8%
1/8
43.3%
Expect to seek external finance to fund growth
62.7%
2/8
56.0%
5/8
59.7%
Planned business activity over the next 12 months
28 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
Social media and e-commerce
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Earned revenue from online sales
93.8%
1/8
96.5%
1/8
68.9%
Used social media for business purposes
96.0%
3/8
98.1%
1/8
81.4%
2015
Rank
2014
2015 survey
average
84.0%
1/4
63.4%
ASEAN Economic Community
Creation of the ASEAN Economic Community will have a positive
impact on their business
Demographics
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Business is 10 years old or younger
75.2%
2/8
58.6%
6/8
65.6%
Respondent is aged 39 or younger
79.4%
2/8
61.9%
4/8
53.3%
29 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – INDONESIA REPORT
ABOUT THE SURVEY
The CPA Australia Asia-Pacific Small Business Survey 2015 is part of a longitudinal annual study of small business
conducted by CPA Australia since 2009. This report presents a cross-market comparison between the eight
markets surveyed and, where applicable, a comparison of results from 2009 onwards. The survey was conducted
between 24 September and 14 October 2015.
The mainland of China and Vietnam were included in the survey for the first time in 2014. Indonesia and New
Zealand were included in 2011.
The survey in the mainland of China was conducted in Beijing, Chongqing, Guangzhou and Shanghai. All data for
China excludes Hong Kong, which is shown separately.
Interview method
In each market, the online survey was conducted amongst a random sample of small business owners/managers.
The sample was obtained through online panel provider Research Now and their Asian panel partner iPanelonline.
To qualify for the survey, participants were required to be an owner, a senior manager (defined as being a director,
a principal, a CEO, a CFO, a senior manager or a managing director) or a qualified accountant of a business with
fewer than 20 employees.
Sample
In total, 2932 participants completed the survey, including 510 from Australia, 610 from the mainland of China, 265
from Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310
from Vietnam.
Of the 610 participants from the mainland of China, 155 were from Beijing, 152 were from Chongqing, 147 were
from Guangzhou and 156 were from Shanghai.
Questioning
Questions on small business confidence, employment, social media, costs and access to finance were drawn from
previous surveys. Some slight modifications to question wording were made to a number of those repeated
questions. Questions on innovation, major influences on the business environment, e-commerce, spending on
marketing and assets and exporting are new in this survey.
Questionnaires in Australia, Singapore and New Zealand were administered in English. The Hong Kong
questionnaire was administered in traditional Chinese, the questionnaire for Malaysia was administered in both
English and Bahasa Malaysia, Indonesia’s questionnaire was administered in Bahasa Indonesia, China’s
questionnaire was administered in simplified Chinese, and Vietnam’s questionnaire was administered in
Vietnamese.
Rounding
All percentage results shown in this report have been rounded.
29
cpaaustralia.com.au