Bank Indonesia (BI) reported business activity index in the third quarter (Q3) of 2019 slowed compared to the previous quarter. This is reflected in the Weighted Net Balance of 13.39 percent lower from 19.17% in the previous quarter.
The slowing down of business activity mainly occurred in the agriculture, plantation, livestock, forestry and fisheries sectors, particularly in the food crops sub-sector which was affected by prolonged drought, said BI.
Respondents predicted that business activities would continue to grow positively, although not as high as in the previous period. This is indicated from the Weighted Net Balance of business activity forecasts in the fourth quarter of 2019 of 9.13%.
Growth in business activity mainly supported by the construction sector and most of the tertiary sector. Optimism for future business activity is also reflected in investment forecasts and increased employment in the fourth quarter of 2019.