Jakarta: The results of the latest Business Survey conducted by Bank Indonesia (BI) revealed an improvement in business activity during the second quarter of 2019 compared with conditions in the previous period.
Such developments were confirmed by a weighted net balance (WNB) of 19.17% in the reporting period, increases from 8.65% in the first quarter of 2019. The gains were led by Trade, Accommodation and Food Service Activities as well as the Manufacturing Industry on the back of increasing domestic demand.
"Congruent with stronger growth, the survey also showed how average production capacity utilisation and labour utilisation had increased in the second quarter of 2019 compared with the previous period," the central bank said in a press statement released on Thursday.
"Production capacity utilisation averaged 77.18% in the second quarter of 2019, increasing from 76.10% in the previous period. Meanwhile, the WNB of labour utilisation ticked upwards from 2.37% in the first quarter of 2019 to 2.47% in the second quarter of 2019. In terms of financial conditions, corporate liquidity and profitability improved in the second quarter of 2019, accompanied by relatively accessible bank loans," it remarked.
The survey respondents predicted business expansion to persist in the subsequent period, driven by Financial, Real Estate and Corporate Services as well as the Services Sector, despite the WBN retreating to 16.19% in the third quarter of 2018.
In the meeantime, the latest Retail Sales Survey conducted by Bank Indonesia (BI) confirmed increased retail sales growth in May 2019, driven by seasonal factors.
The Real Sales Index (RSI) grew by 7.7% (yoy) from 6.7% (yoy) in April 2019. The increase were mainly driven by sales of Clothing, Spare Parts and Accessories, as well as Food, Beverages & Tobacco along with increasing demand during the Ramadan month and ahead of the celebration of Eid Al-Fitr.
According to the latest survey, retailers predicted milder inflationary pressures in the next 3 months (August 2019), as indicated by a significant decline in the corresponding Price Expectations Index (PEI) to 138.3 from 160.5 the month earlier.