JAKARTA (TheInsiderStories) – Bank Indonesia (BI) noted that business activities in the first quarter (1Q) of 2019 indicated a higher growth compared the previous quarter, it said on Thursday (04/11). This reflected in the value of the Weighted Net Balance results of the Business World Activity Survey in 1Q 2019 at 8.65 percent, higher than 6.19 percent in 4Q 2018.

The increase is mainly occurred in the agricultural, plantation, livestock, forestry and fisheries sectors, especially in the food crops agriculture sub-sector in line with the entry of the harvest season period.

Business activities survey also indicated that the use of production and labor capacity in the 1Q 2019 increased compared to the previous quarter. In terms of finance, the condition of liquidity and profitability of the business world remains good, accompanied by relatively easy access to bank credit.

Respondents predict that business activity will continue growing in the 2Q of 2019. Indicated by the weighted net balance forecasts of business activity which increased to 21.42 percent.

Based on the economic sector, the increase in business activity is predicted to occur in all sectors, with the highest increase in the services sector and manufacturing industry. Level of employment and investment in the business sector in the 2Q 2019 is predicted to grow higher compared to conditions in the 1Q.

Meanwhile, the performance of the manufacturing sector in the first quarter of 2019 is at the level of expansion. This is indicated by the value of the Purchasing Manufacturing Index (PMI) of 52.65 percent and the results of the survey of business activities in the first quarter of 2019 for the indicated Manufacturing Industry business activities with a weighted net balance of 1 percent.

The improvement in the processing industry was driven by increases in order volume in line with the increase in domestic demand, including preparation for Ramadhan and Eid al-Fitr 2019. Based on the sub-sector, expansion in the processing industry mainly occurred in the Paper & Printed Goods Industry and Food, Beverage & Tobacco Industry.

In 2Q 2019, expansion in the manufacturing sector’ performance is predicted to continue. This is indicated by PMI which is in the expansion phase with the index increasing to 53.21 percent.

This increase was mainly driven by increases in production volume and inventory volume. This expansion was also reflected in the weighted net balance of manufacturing industry business activities in the second quarter of 2019 which increased compared to the previous quarter.

Written by Staff Editor, Email: theinsiderstories@gmail.com