Impact of PPKM: Business Activity Growth Slowed in Q3 2021

Bank Indonesia (BI) reported that business activity remained positive in the third quarter of 2021. However, this growth slowed compared to the previous quarter.

This is reflected in the Weighted Net Balance (WNB) value of 7.58% in July-September 2021. This value is lower than the 18.98% recorded in April-June 2021.

The central bank explained that performance slowed in several sectors. This is partly due to the implementation of Community Activity Restrictions (PPKM) in July and August 2021.

In detail, the WNB value in the mining and quarrying sector slowed from 8.5% in Q2-2021 to 4.01% in Q3-2021. The WNB value for the electricity, gas, and water sector slowed from 0.27% to 0.24%.

The WNB value for the trade, hotel, and restaurant sector slowed from 3.66% to 0.01%. The WNB value for the finance, real estate, and corporate services sector slowed from 2.04% to 0.53%.

Meanwhile, the WNB value for the manufacturing sector contracted by 0.1% in Q3-2021. The WNB value for the transportation and communication sector also decreased by 0.29% in the same period.

However, some sectors experienced growth. The WNB value for the agriculture, plantation, livestock, forestry, and fisheries sector increased from 1.38% to 1.91%. This growth is in line with successful harvests in several regions.

The WNB value for the construction sector grew from -0.22% to 0.74%. Furthermore, the WNB value for the service sector increased from 0.08% to 0.52%.