Jakarta: The latest Business Survey conducted by Bank Indonesia (BI) revealed a contraction of business conditions in the second quarter of 2020, as confirmed by a weighted net balance (WNB) of -35.75 percent in the reporting period compared with -5.56 percent in the first quarter of 2020.
All business sectors are reeling from compressed demand and supply disruptions caused by the covid-19 pandemic, with the Manufacturing Industry, Trade, Accommodation and Food Service Activities as well as the Services Sector hardest hit.
Consistent with muted business activity, survey respondents also confirmed lower production capacity and labour utilisation in the second quarter of 2020 compared with conditions in the previous period.
Meanwhile, liquidity and profitability also tracked downward trends in the second quarter of 2020, accompanied by tighter access to bank loans.
"Respondents predicted business activity to show incipient signs of recovery in the third quarter of 2020, with the WNB recorded at 0.52 percent," the central bank said in a release on Monday.
By sector, Mining and Quarrying are expected to drive the gains due to higher demand and lower rainfall that supports the excavation, as well as the as Services particularly in the Government Administration sub-sector, driven by the government programs to overcome the covid-19 pandemic.Artikel Asli