Business activity in Indonesia remained stable in the fourth quarter of 2025, according to the latest Business Survey by Bank Indonesia (19/01).

The survey recorded a Weighted Net Balance (WNB) of 10.61%, reflecting steady performance across most sectors. Seasonal demand during the Christmas and New Year period contributed to maintaining positive growth.

Sector Highlights: Financial Services, Trade, and Manufacturing Lead Growth

Financial Services recorded the highest WNB among all sectors, followed by Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles, Manufacturing, Public Administration, Defence, and Compulsory Social Security, Information and Communication, and Accommodation and Food Service Activities. The increase in business activity was in line with seasonal consumer demand.

Production Capacity and Corporate Financial Health Remain Stable

Production capacity utilisation in Q4 2025 was maintained at 73.15%. This stability was supported by sectors such as Electricity Supply and Water Supply, Sewerage, Waste Management, and Remediation Activities. Corporate financial conditions also remained sound, with stable liquidity and profitability and looser access to credit.

Outlook for Q1 2026: Seasonal Factors to Drive Acceleration

Respondents expect business activity to grow in the first quarter of 2026, with a projected WNB of 12.93%.

This growth is expected in the Agricultural, Forestry, and Fishing sector due to the harvesting season, along with Manufacturing, Transportation and Storage, and Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles.

Seasonal demand during Ramadan and Eid-ul-Fitr 1447 H will also support this expected increase.

PHOTO: BANK INDONESIA

This article was created with AI assistance.

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