The latest Business Survey conducted by Bank Indonesia indicates increasing business activity in the second quarter of 2023, as reflected by an upward movement in the Weighted Net Balance (WNB) to 16.62% from 11.05% in the first quarter of 2023. The respondents confirmed increasing business activity across most economic sectors, particularly the Agricultural, Forestry, and Fishing sector in line with seasonal food crop and horticultural harvesting trends as well as the Manufacturing Industry in response to increasing industrial activity and supporting storage capacity. In addition, Construction sector performance improved given the commencement of domestic development projects. Meanwhile, Wholesale and Retail Trade, Transportation and Storage as well as Accommodation and Food Service Activities also increased in line with stronger demand during the Ramadan and Eid-ul-Fitr 1444 H national religious holidays.

Consistent with business activity developments, production capacity utilisation in the second quarter of 2023 increased to 74.88% from 72.33% in the first quarter of 2023, and labour utilisation also increased in expansionary territory. Meanwhile, corporate financial conditions improved in the reporting period in terms of liquidity and profitability, with broad access to finance.

Respondents predict persistently solid business activity in the third quarter of 2023, as indicated by WNB of 15.42%, driven by several secondary sectors, including the Manufacturing Industry on the back of growing demand and supporting production facilities, as well as the Construction sector in line with increasing demand and ongoing domestic projects. In addition, respondents also expect Mining and Quarrying sector performance to increase in response to seasonal factors, the availability of production facilities, and increasing storage capacity.