BI Records Slowing Employment Absorption in Q2 2026

A business activity survey released by Bank Indonesia (BI) recorded a slowdown in employment absorption in the second quarter of 2026. Based on the survey, the weighted net balance (SBT) for labour grew by 0.14 per cent, decelerating compared to the previous quarter’s figure of 0.28 per cent. “Several business fields (LU) that recorded increases came from the Mining and Quarrying sector (SBT 0.26 per cent) and the Construction sector (SBT 0.07 per cent), in line with the increase in their business activities,” the Bank Indonesia report stated. Additionally, other business fields that indicated positive results included Wholesale and Retail Trade, and Car and Motorcycle Repair (SBT 0.27 per cent) and Financial Services (SBT 0.29 per cent), in line with the addition of vehicle dealers/showrooms and branch offices. Meanwhile, the Manufacturing Industry sector recorded the deepest contraction in employment absorption, with an SBT of -0.54 per cent. The Agriculture, Forestry, and Fisheries sector recorded an SBT of 0.23 per cent. The Public Administration, Defence, and Compulsory Social Security sector also experienced a contraction, with an SBT of -0.14 per cent. In the third quarter of 2026, respondents expect labour utilisation to increase, with an SBT of 0.95 per cent. The increase in employment absorption is expected to come from Agriculture, Forestry, and Fisheries (SBT 0.06 per cent), in line with the harvest of horticultural and plantation commodities, followed by the Accommodation and Food and Beverage Provision sector (SBT 0.08 per cent) and the Real Estate sector (SBT 0.12 per cent). Meanwhile, the Manufacturing Industry sector is also expected to improve, although it remains in a contraction phase. The SBT for the Manufacturing Industry sector in the third quarter is estimated at -0.14 per cent, in line with its business activities.