JAKARTA, NNC - The first quarter (Q1) of 2018 sees growth in business activities from an increase in employment and contribution from the swift investment compared to the last quarter of last year.
Survey conducted by Bank Indonesia (BI), Thursday (1/11/2018) mentioned, the increase in business activity in Q1 was seen from the component of Weighted Net Balance (SBT) business activities which increased to 13.96 percent.
"Based on the economic sector, the increase in business activities is predicted to occur in all sectors, especially the financial sector, real estate & corporate services, services and manufacturing industries.The performance improvement of manufacturing industry in Q1-2018 is also indicated from Purchasing Managers Index-SKDU located in the expansionary phase amounting to 51.95 percent," stated results of a BI survey.
In the fourth quarter of last year, business activities slowed down compared to the previous quarter, reflected in WNB that fell from 14.32 percent to 7.4 percent.
The slowdown was mainly caused by decreases in agricultural, plantation and livestock operations, due to seasonal factors and non-conducive weather.
"In addition, the slowing down of business activities in the fourth quarter of 2017 was also caused by the decline in business activities of the manufacturing sector, which recorded WNB minus 0.12 percent, lower than the previous quarter of 1.76 percent," according to BI.
In line with the slowing down of business activities in the fourth quarter of 2017, the rate of production capacity utilization also decreased from 75.99 percent in the third quarter of 2017 to 75.05 percent in the fourth quarter of 2017.
In terms of labor, the survey results recorded SBT total employment quarter IV 2017 contracted by minus 0.89 percent, down from 0.13 percent SBT in the third quarter 2017.