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The latest Business Survey conducted by Bank Indonesia indicated business growth in the fourth quarter of 2021, as reflected by a weighted net balance (WNB) of 7.10%, down slightly from 7.58% in the third quarter of 2021 yet significantly stronger than the -3.90% recorded in the fourth quarter of 2020. Businesses in the Manufacturing Industry, Trade, Accommodation and Food Service Activities as well as Transportation and Communication expanded on growing demand as the Government relaxed mobility restrictions in various regions, coupled with seasonal factors, namely the Christmas national religious holiday (HBKN) and New Year festive period.
Following a similar trend, production capacity utilisation stood at 72.60% in the fourth quarter of 2021, decreasing marginally from 73.30% in the previous period but improving from 71.96% in the fourth quarter of 2020. Labour utilisation also improved despite remaining in a contractionary phase. Corporate financial conditions recovered on the previous period based on liquidity and profitability, supported by easier access to financing.
In the first quarter of 2022, survey respondents predicted business activity to accelerate, as reflected by a WNB of 9.39%, driven by several key sectors, particularly Agriculture, Plantations, Livestock, Forestry and Fishing due to the food crop harvesting season, as well as the Manufacturing Industry on the back of growing demand.
More information concerning the Business Survey is accessible via the Bank Indonesia website.
Jakarta, 14th January 2022Head of Communication DepartmentErwin HaryonoExecutive DirectorInformation about Bank IndonesiaTel. 021-131, Email: email@example.com
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