No.23/ 169 /DKom
The latest Business Survey conducted by
Bank Indonesia pointed to faster business expansion in the second quarter of
2021, as indicated by a significant increase in the weighted net balance (WNB)
to 18.98% compared with 4.50% in the first quarter of 2021. Recent gains were
driven by expansion recorded in most economic sectors, including Mining and
Quarrying; Trade, Accommodation and Food Service Activities; as well as
Agriculture, Plantations, Livestock, Forestry and Fishing. Respondents stated
that mining sector gains were driven by strong domestic demand, supported by
higher production, while a seasonal spike in demand during the Ramadan and
Eid-ul-Fitr festive period boosted trade, accommodation and food service
activities. Similarly, agricultural performance was underpinned by seasonal
factors and a successful food crop harvest.
Consistent with increasing
business activity, production capacity utilisation soared to 75.33% in the
second quarter of 2021 from 73.38% in the previous period, while labour utilisation
increased despite remaining in a contractionary phase, accompanied by improving
corporate financial conditions and access to credit.
Bank Indonesia will carefully monitor
the impact of emergency public activity restrictions (PPKM) introduced by the
government that could severely impede business performance in the third quarter
of 2021. Respondents predicted broad-based business moderation In the third
quarter of 2021, despite a positive WNB of 9.77%, across most economic sectors,
especially Trade, Accommodation and Food Service Activities as well as
Financial, Real Estate and Corporate Services. On the other hand, respondents
expected agricultural and manufacturing industry performance to decline.
Jakarta,
14th July 2021
Head of
Communication Department
Erwin Haryono
Executive
Director
Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id