Highlights

Katadata Investor Confidence Index (KICI) highlights the institutional investors’ confidence and risk appetite through survey. KICI measured the average of institutional investor sentiment, derived through our regular questionnaire on a quarterly basis. The questionnaires captured respondent’s sentiment, behavior, and key trends underlying in Indonesia investment market. Particularly in current market condition, domestic and global economic – as well as investment outlook, and capital appreciation.

Respondents are investment division of Investment Management, Financial Institution Pension Fund, and Insurance.

Methodology

A quantitative method of research through telephone survey, questions were asked from a structured questionnaire, as designed by our team.

KICI components are formed by the following formula:

Xi = Percentage of Positive Answer – Percentage of Negative Answer + 100

KICI value is assigned from 0 to 200. Should all respondent’s answer be positive, the diffusion index shall define 200. Conversely, negative answers shall define 0.

The average of all index diffusion components shall determine KICI, calculated with formula as follows:

KICI = (X1 + X2 + … + Xp)/p
where p is the number of the components of KICI

Where:

a) KICI value > 100: shall define optimism of respondents’ answer.

b) KICI value < 100: shall define pessimism of respondents’ answer.

c) KICI value = 100: shall define neutral.