BI Survey: Business Activity Shows Positive Growth in Q4 2021; Here are the Drivers

Bank Indonesia (BI) reported that business activity continued to grow positively in the fourth quarter of 2021. This is reflected in the results of the Business Activity Survey, where the Weighted Net Balance (WNB) was 7.10%.

However, this growth was slightly lower than the WNB in the third quarter of 2021, which was 7.58%. Nevertheless, it increased compared to the Q4 2020 WNB of -3.90%.

The central bank noted that improved business performance was indicated in several sectors. The WNB for the manufacturing industry increased from -0.1% in Q3 2021 to 0.5% in Q4 2021.

The WNB for the trade, hotel, and restaurant sector grew from 0.01% to 1.77%. The WNB for the transportation and communication sector increased from -0.29% to 1.32%. The WNB for the electricity, gas, and water sector increased from 0.24% to 0.29%.

Furthermore, the WNB for the finance, real estate, and corporate services sector increased from 0.53% to 2%. And the WNB for the services sector increased from 0.52% to 2.38%.

This increase was driven by rising demand in line with the easing of mobility restriction policies in various regions, as well as the national religious holidays (HBKN) of Christmas and the year-end holidays.

Meanwhile, some other sectors experienced a slowdown. The WNB for the mining and quarrying sector slowed from 4.01% in Q3 2021 to 0.72% in Q4 2021. The WNB for the construction sector slowed from 0.74% to 0.35%. Meanwhile, the WNB for the agriculture, plantation, livestock, forestry, and fisheries sector contracted from 1.91% to -2.23%.