Business Activity Increased in Q2 2021

Bank Indonesia's Business Activity Survey (SKDU) shows an upward trend in business activity performance. This is reflected in the Weighted Net Balance (WNB) of business activity, which reached 18.98% in Q2 2021.

This figure is higher compared to Q1 2021, which stood at 4.5%. The performance improvement was driven by several business sectors, most of which experienced positive growth.

Firstly, the mining and quarrying sector reached 8.5%. The growth in this sector is due to increased domestic demand and production. Then, the trade, hotel, and restaurant sector reached 3.66%, and the manufacturing sector reached 2.46%.

Furthermore, the agriculture, plantation, livestock, forestry, and fisheries sector had a WNB of 1.38%. This is in line with seasonal factors and the successful harvest of food crops. Meanwhile, Bank Indonesia reported that the construction sector was the only sector that contracted, but improved compared to the previous quarter. This sector had a WNB of -0.22%.

Nevertheless, business activity is expected to slow down in Q3 2021 to 9.77% due to the implementation of Community Activity Restrictions (PPKM) in an effort to control Covid-19.