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Economy

Business Activity Growth in Q2 2025 Shows Strong Improvement — What’s Driving This Positive Trend?

18 Jul, 2025
Business Activity Growth in Q2 2025 Shows Strong Improvement — What’s Driving This Positive Trend?

The latest Business Activity Survey indicates a notable increase in business activities in the second quarter of 2025.

This is reflected in the Net Weighted Balance (NWB) value of 11.70%, which is higher compared to 7.63% in the previous quarter.

Most sectors contributed to this rise, with the Government Administration, Defense, and Mandatory Social Security sectors showing strong performance.

This aligns with the seasonal government budget spending pattern.

Additionally, the Manufacturing and Accommodation and Food Service sectors benefited from sustained demand during the National Religious Holiday period throughout Q2 2025.

Production capacity utilization rose slightly to 73.58% in Q2, up from 73.25% in Q1 2025.

This improvement was mainly supported by the Mining and Quarrying sector, along with the Electricity Supply sector.

The overall financial condition of businesses remained solid, with both liquidity and profitability in good shape.

Credit access remained easily available, further supporting business stability.

Respondents anticipate continued business activity growth in the third quarter of 2025, with an NWB forecast of 11.98%.

Expected growth drivers include the Construction sector, due to the start of several government and private projects, and the Mining and Quarrying sector, buoyed by steady demand.



PHOTO: BANK INDONESIA

This article was created with AI assistance.

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