JAKARTA - The results of the Business Activity Survey (SKDU) indicate that business activity fell in the second quarter of 2020. This is reflected in the value of the Weighted Net Balance (WNB) of -35.75% in the second quarter of 2020, contracting deeper compared to -5.56% in the first quarter of 2020.
The decline in business activity occurred in all economic sectors with the deepest decline in the Manufacturing Industry sector, Trade, Hotel and Restaurant sector, and Services sector. This was mainly due to decreased demand and supply disruptions due to the COVID-19 pandemic.
In line with the decline in business activities, the production capacity used and the use of labor in quarter II-2020 was lower than the previous quarter. Meanwhile, liquidity and profitability in the business activity also showed a decline in quarter II-2020, with access to bank credit being more difficult.
In quarter III-2020, respondents predicted business activities would increase supported by improvements in all sectors, with WNB of 0.52%. Based on the economic sector, an increase in business activity is predicted, especially in the mining and quarrying sector, as well as the services sector.
The increase in the Mining and Quarrying sector is in line with the favorable weather and expected demand to increase. Meanwhile, the increase in the services sector, especially in the government administration sub-sector was driven by various central and regional government programs in terms of COVID-19 countermeasures. (LM)