JAKARTA - Results of the Business Activity Survey (SKDU) indicate that business activity declined in the first quarter of 2020. This is reflected in the value of the Weighted Net Balance (WNB) in quarter I-2020 of -5.56%, down quite deep compared to 7.79% in quarter IV-2019.
The decline in business activity occurred in a number of economic sectors such as the Manufacturing Industry, Trade, Hotel and Restaurant sector, Mining sector, Transportation and Communication sector, and Construction sector. This was mainly due to a decrease in demand and supply disruptions due to the COVID-19 outbreak.
In line with the performance of business activities, the production capacity used and the use of labor in quarter I-2020 was lower than the previous quarter. Meanwhile, the financial condition of the business world in terms of liquidity and profitability was still quite good despite the decline in the first quarter of 2020, with relatively normal access to bank credit.
In the second quarter of 2020, respondents predicted business activity would increase, with a WNB of 2.13%. Based on the economic sector, business activity is predicted to increase mainly in the agriculture, plantation, animal husbandry, forestry and fisheries sector (WNB 1.57%) in line with the ongoing rice harvest in several regions, and the services sector (WNB 1.32%) . (LM)