BI Survey Shows Increasing Business Activities in Indonesia

The latest Business Survey, conducted by Bank Indonesia (BI) in the first quarter of 2023, indicated increasing business activities in the country.

IDXChannel - The latest Business Survey, conducted by Bank Indonesia (BI) in the first quarter of 2023,  indicated increasing business activities in the country.

The increase was rreflected by a modest uptick in the Weighted Net Balance (WNB) to 11.05% in the third quarter of 2023 from 10.71% in the fourth quarter of 2022. 

“Business activities increased in the Agricultural, Forestry, and Fishing sector in line with seasonal harvesting trends as well as the Manufacturing Industry sector due to an increase in industrial activity, the availability of production facilities as well as supporting storage capacity,” BI Communication Department Executive Director Erwin Haryono said in a press release on Friday (14/4/2023).

In addition, business activities in the Mining and Quarrying sector, as well as Wholesale and Retail Trade, and Repair of Motor Vehicles and Motorcycles also increased on the back of growing domestic demand and greater community mobility.

“Production capacity utilisation in the first quarter of 2023 stood at 72.33%, up from 71.49% in the fourth quarter of 2022, and labour utilisation increased in an expansionary phase,” he said.

Meanwhile, corporate financial conditions remained sound in the reporting period despite retreating compared to conditions in the previous quarter.

Respondents predict stronger business activities in the second quarter of 2023, as indicated by a WNB of 21.44%, driven by several key sectors, namely Agriculture as the harvesting season continues and Mining with the support of available production facilities. 

“In addition, respondents expect Manufacturing Industry performance to improve on increasing demand, supported by the availability of production facilities and storage capacity, while stronger business activity is anticipated in terms of Wholesale and Retail Trade, Transportation and Logistics as well as Accommodation and Food Service Activities, stoked by the seasonal spike in domestic demand during the national religious holiday (HBKN) for Eid-ul-Fitr 1444H,” he concluded.