Bank of Indonesia’s latest Business Survey indicates that business activity increased in the second quarter of 2026, with the Weighted Net Balance rising to 12.97% from 10.11% in the previous period. The improvement was accompanied by a modest rise in production capacity utilisation to 73.80% from 73.33% in the first quarter. Corporate financial conditions remained sound in terms of liquidity and profitability, while access to credit stayed loose. The increase in activity was driven by stronger performance across most key sectors, notably Agriculture, Forestry and Fishing, Construction, Mining and Quarrying, and Accommodation and Food Service Activities, supported by demand during recent national religious holidays and the school holiday peak season. For the third quarter of 2026, respondents expect business activity to remain positive, with a Weighted Net Balance of 11.75%. The outlook points to gains in Manufacturing, Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles on sustained private demand, continued strength in Construction from ongoing public and private projects, and higher Mining and Quarrying activity as lower rainfall supports operations.

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