The 2022 Business Survey conducted by Bank Indonesia (BI) has indicated that the performance of business activities remained strong in the fourth quarter, and it is predicted to increase in the first quarter of 2023.
“This is reflected in the value of the weighted net balance (WNB) of 10.27 percent, although it is lower than the WNB in the third quarter of 2022 of 13.89 percent,” executive director of BI’s communication department Erwin Haryono said in an official statement received on Friday.
The WNB value was recorded to be positive in all sectors, except in some sectors which declined, such as agriculture, plantation, livestock, forestry, and fisheries sectors, primarily the food crop sub-sector, due to the beginning of the planting season.
Business activity remained robust in the fourth quarter of 2022 with the support of the higher growth of the tertiary sector, especially the services sector as well as the transportation and communication sectors in line with the increase in demand during the Christmas and year-end holidays.
Production capacity utilization in the fourth quarter of 2022 remained good, namely at 70.94 percent, even though it showed a decline compared to the third quarter of 2022, when it was recorded at 73.67 percent. Thus, labor utilization is also indicated to experience a decline.
Then, corporate financial conditions improved in all aspects, namely in terms of liquidity and profitability, accompanied by easier access to financing.
In the first quarter of 2023, respondents projected that business activity will improve, with the WNB value reaching 13.66 percent.
An improvement in business activity is predicted in the primary and secondary sectors, including the agriculture, plantation, livestock, forestry, and fisheries sectors, in line with the start of the harvest season, which will begin in March.
“Meanwhile, improvement in the mining and quarrying sector, as well as the manufacturing industry, is in line with increasing demand supported by storage capacity and the availability of production facilities,” he explained.
Source: Antara News