2011 Edelman Trust BarometerFebruary 28, 2011

Indonesia findings

Edelman Trust Barometer at a glance

Eleventh annual study (3rd In Indonesia)

5,075 people in 23 countries

(of which 1575 in APAC and 200 in Indonesia)

Ages 25 to 64, College Educated

In top 25% of household income per age group

in each country

Report significant media consumption and engagement

in business news and public policy

APAC Selected Countries: India, China, Japan, South Korea,

Indonesia, Singapore, Australia

2

Survey dates: Oct 11 – Nov 28, 2010, Margin of error 6.9%

The Edelman Trust Barometer in retrospect

Rising Influence of NGOs2001

Fall of the celebrity CEO2002

Earned media more credible than advertising2003

U.S. companies in Europe suffer trust discount2004

Trust shifts from “authorities” to peers2005

“A person like me” emerges as credible spokesperson2006

Business more trusted than government and media2007

Young influencers have more trust in business2008

Business must partner with government to regain trust2009

Transparency key driver of trust in a multi-channel and multi-

stakeholder environment2010

3

2010 Year in review

Trust in Institutions

Q: Please tell me how much you trust that institution to do what is right; (Top 4 Box) Informed Publics ages 25-64 in 23 countries, Asia Pacific and Indonesia

5

Indonesia informed publics have significantly higher levels of trust in

business and media than their global and APAC peers

6

Indonesia is the only APAC country where trust in business increased this year

Trust in Business (2010 – 2011)

Q: Please tell me how much you trust that institution to do what is right; (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Trusters Distrusters

2010 2011

+16

- 8

Neutral

+2

7

Media also enjoys a significant increase in trust this year in Indonesia

Trust in Media (2010 – 2011)

Trusters

Distrusters

2010 2011

+7

+11

- 11

+17

+12

Neutral

+4

Q: Please tell me how much you trust that institution to do what is right; (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Trust in Business and NGOs

8

Indonesia more trusting of business than NGOs, in contrast to most other

APAC countries where trust is equal or NGOs are more trusted

Q: Please tell me how much you trust that institution to do what is right; (Top 4 Box, Trust) Informed Publics ages 25-64 in 23countries

41%

74%

85%

88%

89%

90%

90%

91%

92%

92%

93%

94%

94%

94%

97%

Brewing and spirits

OTC personal health care products

Insurance

Consumer packaged goods

Food and beverage

Energy

Entertainment

Financial services

Banks

Media

Pharmaceuticals

Retail

Telecommunications

Automotive

Technology

9

Technology, telco, automotive, retail most trusted industries;

insurance and retail top gainers

Trust in Industries - Indonesia

Q: Please tell me how much you trust businesses in each of the following industries to do what is right ; (Top 4 Box) Informed publics ages 25-64 in APAC and Indonesia

87%

77%

78%

71%

72%

64%

75%

66%

67%

68%

66%

59%

65%

61%

54%

Significant at 95%

confidence level

compared to global

Asia

Pacific

#1

#2

#3

#4

59%

75%

2010

10

Trust in Banks

In stark contrast to global informed publics, nine out of 10 in Indonesia trust

banks

+7

+18

- 11

+8

Q: Please tell me how much you trust businesses in each of the following industries to do what is right ; (Top 4 Box) Informed publics ages 25-64 in APAC and Indonesia

Business and Society

Toward shared value

12

Q: How important are each of the following factors to the overall reputation of the company? ; (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in APAC and Indonesia

Employee treatment, transparency and trust most important reputation

attributes in Indonesia; highly-regarded leadership least important

Factors Defining Reputation - Indonesia

62%

62%

58%

63%

72%

54%

53%

50%

45%

38%

Significant at 95%

confidence level

compared to global

Asia

Pacific

#1

#2

#3

#3

13

Q: Please tell me if you strongly agree, somewhat agree, neither agree nor disagree, somewhat disagree or strongly disagree with the following quote from Milton Friedman: “The social responsibility of business is to increase its profits”? (Net: Strongly agree + somewhat agree) Informed Publics ages 25-64 in 23 countries

% who agree

Just over half in Indonesia agree that by making a profit, business meets its

social responsibility

Milton Friedman: “The social responsibility of business is to increase its profits”

14

Q: Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way in which they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in 23 countries

But nearly nine out of 10 also believe business must align with society’s

interests in creating shareholder value

15

Q: Which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in 23 countries

And seven out of 10 believe government needs to step in to ensure

corporations behave in a responsible way

Roadmap to Trust

A new way forward

17

Credible Spokespeople – Indonesia

N/A

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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Indonesia

Credibility of various people as a source of information about a company

remains unchanged

18

CEO credibility increases in many global markets, but not in Indonesia

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, Credible: Very + Extremely Credible) Informed Publics ages 25-64

Credible Spokespeople – CEO

APAC

+7

+10

+14

+11

+20

+13

19

In crisis situations, people want to hear from multiple voices, but the

company must be out in front

Q: When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about that crisis. Informed Publics ages 25-64 in Indonesia .Q: When a company issues a product recall, which one person do you want to hear information from about that recall? Informed Publics ages 25-64 in Indonesia.Q: When a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about that damage? Informed Publics ages 25-64 in Indonesia.

Trusted spokesperson

during a company crisis

Preferred spokesperson

during a product recall

Preferred spokesperson when the

local community has been damaged

Indonesia

11%

35%

6%

6%

8%

12%

11%

34%

21%

30%

33%

33%

Corporate/product advertising

Corporate communications such as press releases

Microblogging sites, such as Twitter

Blogs

Social networking sites

Content-sharing sites, such as YouTube

News/RSS feeds

Online search engines

Radio or radio news

Newspapers

Magazines or business magazines

Television or television news

On

line

Mu

ltiple

so

urc

es

Tra

ditio

nal

So

cia

l Me

dia

Co

rpo

rate

Corporate communications most trusted source of company information in

Indonesia along with traditional media sources and search engines

Trusted Information Sources – Trust a Great Deal

Q: I’m going to read you a list of places where you might get information about a company. For each, please tell me if you trust it – a great deal, somewhat, not too much, or not at all as a source of information about a company? (Trust A Great Deal) Informed Publics ages 25-64 in APAC and Indonesia.

41%

40%

28%

23%

25%

18%

10%

10%

8%

7%

24%

11%

Asia

Pacific

24

Where Informed Publics go for company news and information – Indonesia

First Source Second Source Are these the same types of sources

you consult first for information

about a business crisis?

Informed publics in Indonesia go to online search engine first for news and

information about a company

Q: There are a number of sources one could use to find general news or information about a company. When looking for general news or information about a company, which one type of information source would you generally consult first and second? Informed Publics ages 25-64 in Indonesia

Informed publics need information from multiple sources, multiple voices

25

Q: How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Indonesia.

3-5 times

65%

And need to hear it 3-5 times to believe it

Indonesia

The Benefits of Trust

Bought shares

Paid more for products/services

Chose to buy products/servicesRefused to buy products/services

Recommended them to a friend/colleagueCriticized them to a friend/colleague

Shared negative opinions online

Sold shares

Shared positive opinions online

+_Distrusted Companies Trusted Companies

Actions Taken Over Past 12 Months – Indonesia

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. (Percent “Yes”) Informed Publics ages 25-64 in Indonesia.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. (Percent “Yes”) Informed Publics ages 25-64 in Indonesia.

27

Through personal action, trust has tangible benefits

89%87%

2009 2009

72%

34%

17%

82%

44%

16%

When a company is distrusted When a company is trusted

19%

24%

50% will believenegative information

after hearing it 1-2 times

Q: Think about a company that you do not trust. How many times would you need to be exposed to positive or negative information about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Indonesia.Q: Think about a company that you trust. How many times would you need to be exposed to positive and negative information aboutthat company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Indonesia.

Trust protects reputation

28

will believe positive information after hearing it 1-2 times

will believe negative information after hearing it 1-2 times

44%will believe

positive information after hearing it 1-2 times

Indonesia

Conclusions

Business must align profit and purpose for social

benefit

Current media landscape plus increased

skepticism requires multiple voices and channels

29

Demand for authority and accountability set new

expectations for corporate leadership

The Transformation of Trust

30

Control Information

Focus Solely on Profit

Pro

tect th

e B

ran

d

Sta

nd

Alo

ne

Profit With Purpose

Old Trust Framework New Trust Architecture

WHAT

A Ten Year Overview of Trust

The 2011 Edelman Trust Barometer is the firm’s 11th trust and credibility survey

The survey was produced by research firm StrategyOne. The survey consisted of 30-minute telephone interviews.

For more information on the Edelman Trust Barometer and to view past results, please visit www.edelman.com/trust

For further information please contact ;

Chadd McLisky, ChairmanIndoPacific EdelmanRecapital Building, 3rd Fl.Jl. Adityawarman Kav. 55Jakarta 12160

Phone : +62 21 721 59000Fax: +62 21 727 8919

Email: chadd.mclisky@indopacedelman.com