BI Survey Shows Business Activity Increased in Q2

A Bank Indonesia (BI) survey has recorded an increase in business activity in the second quarter of 2026. This is reflected in a Weighted Net Balance (SBT) of 12.97 per cent, higher than the previous quarter’s figure of 10.11 per cent.

Bank Indonesia’s Executive Director of the Communications Department, Ramdan Denny Prakoso, said the rise in business activity was driven by improved performance across the majority of main business sectors (LU).

“These include the Agriculture, Forestry and Fisheries sector, the Construction sector, and the Mining and Quarrying sector, in line with their business activities, as well as the Accommodation and Food and Beverage Services sector, in line with sustained demand during the series of National Religious Holiday (HBKN) periods and the school holiday high season in the second quarter of 2026,” he said in a press statement on Friday, 17 July 2026.

Utilised production capacity in the second quarter of 2026 was recorded at 73.80 per cent. This was an increase compared with the first quarter of 2026, which stood at 73.33 per cent. The rise was mainly supported by the Agriculture, Forestry and Fisheries sector, the Mining and Quarrying sector, and the Electricity Supply sector.

Meanwhile, the financial condition of businesses declined in the second quarter. This is reflected in the Liquidity Net Balance of 15.03 per cent, lower than the previous quarter’s 17.05 per cent. The Profitability Net Balance, or companies’ ability to generate profit, was recorded at 11.87 per cent, lower than the previous quarter’s figure of 14.87 per cent.

“Respondents expect business activity in the third quarter of 2026 to remain solid, with an SBT of 11.75 per cent,” said Denny. Business sectors expected to improve include the Manufacturing Industry, Wholesale and Retail Trade, and Motor Vehicle and Motorcycle Repair, in line with expectations of sustained public demand, as well as the Construction sector, as work continues on a number of government and private projects.

In addition, activity in the Mining and Quarrying sector is also expected to increase. This is influenced by declining rainfall, which is supporting higher mining activity.