Jakarta: The most recent Business Survey conducted by Bank Indonesia (BI) pointed to business expansion in the fourth quarter of 2019 with slower growth compared with conditions in the previous period.
"The survey result is in line with the historical trends of business activity which tends to slow down at the end of the year," said BI in a press release issued on Monday, January 13, 2020.
According to the central bank, such conditions are reflected by a weighted net balance (WNB) of 7,79 percent in the reporting period, down from 13,39 percent in the third quarter of 2019.
Business expansion in the fourth quarter of 2019 was confirmed by survey respondents in the Financial, Real Estate and Corporate Services sector; Trade, Accommodation and Food Service Activities sector, Services sector as well as Transportation and Communications sector. In line with slower business expansion, the latest Business Survey also revealed lower production capacity and labour utilisation in the fourth quarter of 2019 compared with conditions in the previous period.
"However, businesses have maintained solid liquidity and profitability, with normal access to bank loans," BI stated.
Respondents predicted business expansion to accelerate in the first quarter of 2020. The condition confirmed by a WNB of 10,70 percent.
Business expansion buoyed by nearly all economic sectors, including the Financial, Real Estate and Corporate Services sector, Agriculture, Livestock, Forestry and Fishing as well as the Manufacturing Industry. Furthermore, survey respondents were upbeat that stronger business activity moving forward would be accompanied by greater labour utilisation.