Bank Indonesia (BI) has released findings indicating a rise in business activity during the first quarter of 2024 compared to the previous quarter, buoyed by heightened consumer demand during the 2024 General Election and Ramadan period. This assessment stems from the results of Bank Indonesia’s Business Activity Survey (SKDU), which reported a Net Weighted Balance (SBT) of 14.11% for Q1 2024, up from 13.17% in Q4 2023. Erwin Haryono, Assistant Governor and Head of the Communication Department at BI, noted that all sectors of the economy demonstrated positive growth, particularly in Agriculture, Forestry, and Fisheries. This trend correlates with the commencement of harvest season and seasonal factors affecting crops, horticulture, plantations, and livestock.
“Manufacturing and wholesale/retail trade, including motor vehicle repair, saw positive growth due to increased public demand during the 2024 General Election and Ramadan,” Erwin stated in an official release on Monday (22/4/2024). He further explained that capacity utilization in Q1 2024 stood at 73.61%, indicating resilience despite a slight dip from the previous quarter’s 73.91%.
This resilience, he added, was primarily driven by Agriculture, Forestry, and Fisheries sectors, as well as manufacturing. Additionally, Erwin highlighted that labor force participation remained robust and was expanding. Concurrently, the overall financial health of businesses remained favorable, especially in terms of liquidity and profitability, albeit slightly lower than the previous quarter, with easier access to credit.
