Despite Lebaran, BI Records Slowdown in Business Activity in Q1 2026

JAKARTA - Bank Indonesia (BI) has recorded a slowdown in the performance of business activity growth in the first quarter of 2026. This is reflected in the results of BI’s Business Activity Survey (SKDU). The slowdown in business activity is evident from the weighted net balance (SBT) of 10.11% in Q1 2026, lower than the 10.61% in Q4 2025. This stems from sectors including financial services, agriculture, forestry, and fisheries, processing industries, as well as wholesale and retail trade, and repair of motor vehicles and motorcycles. The growth was due to increased public demand during this period, which included several National Religious Holidays (HBKN) such as Chinese New Year, Nyepi Holy Day, Ramadan, and Eid al-Fitr 1447 H. It also coincided with the start of the harvest season for agricultural commodities. Along with business activity growth, capacity utilisation also increased in Q1 2026 to 73.15%. This figure is an increase from the previous quarter’s achievement of 73.15%. He stated that the rise in production capacity was supported by the agriculture, forestry, and fisheries sector, as well as the processing industry sector. Meanwhile, for the next quarter, the SKDU shows that business activity performance will continue to improve, with even higher growth, reaching an SBT of 14.80%. This optimism comes from the agriculture, forestry, and fisheries sector in line with the continuation of the food commodity harvest season, mining and quarrying supported by reduced rainfall thus encouraging mining activities, and construction along with the start of work on several projects. “Respondents predict that business activity in Q2 2026 will increase,” he said.