Bank Indonesia Business Survey Quarter 3 - 2023' '

QUARTER III - 2023 BUSINESS ACTIVITY REMAINS SOLID
The latest Business Survey conducted by Bank Indonesia indicates that business activity in the
third quarter of 2023 remained solid, as reflected by a weighted net balance (WNB) of 15.65%.
Strong business activity was supported by increasing performance in several economic sectors,
Business Activity
including Mining and Quarrying due to seasonal factors, the Manufacturing Industry on the
back of maintained demand, as well as the Construction sector in line with ongoing domestic
projects.
Production Capacity, Consistent with solid business activity, production capacity utilisation in the third quarter of 2023
Labour and Financial increased to 75.17% from 74.88% in the previous period, while labour utilisation remained in an
Condition expansionary phase despite moderation. On the other hand, corporate financial conditions
remained sound in general, despite retreating on the previous period.
Respondents predict persistently solid business activity in the fourth quarter of 2023, with a
WNB of 13.08%, driven by Wholesale and Retail Trade and the Repair of Motor Vehicles and
Business Optimism Motorcycles, Transportation and Logistics as well as Accommodation and Food Service
Activities in response to a seasonal spike in demand during the Christmas and New Year festive
period.
A. Business Activity
Business activity The latest Business Survey conducted by Bank Indonesia in the third quarter of 2023
remained solid in indicates persistently solid business activity compared to conditions in the previous period despite
the third quarter
quarterly moderation in line with cyclical trends. This was reflected by a Weighted Net Balance
of 2023, with
respondents (WNB) of business activity recorded at 15.65%, down from 16.62% in the second quarter of 2023
predicting robust (Graph 1). Several sectors posted gains, namely Mining and Quarrying (WNB 1.43%) in line with
growth in the
seasonal factors, the availability of production facilities, and increasing storage capacity; the
fourth quarter of
2023. Manufacturing Industry (WNB 2.81%) on the back of maintained demand; as well as Construction
(WNB 1.61%) given ongoing domestic projects supported by conducive seasonal/weather
conditions. Several other sectors, however, experienced moderation, including Agriculture, Forestry,
and Fishing (WNB 1.18%), specifically the Food Crop subsector in line with the dry season (gadu1)
harvest in West Java, Central Java, and East Java; Wholesale and Retail Trade, and Repair of Motor
Vehicles and Motorcycles (WNB 0.88%); as well as Accommodation and Food Service Activities
(WNB 0.54%), particularly Food Service Activities as demand normalises after the recent Eid-ul-Fitr
national religious holiday (Table 1 - Appendix).
1
The gadu harvest refers to rice harvested during the dry season.
Business Survey
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Graph 1 Business Activity
16.66 16.34 16.62

15.65
13.08
3.73 3.86
1.83
Respondents predict robust business activity growth in the fourth quarter of 2023, as
reflected by a WNB of 13.08%. Respondents expect the gains to be driven by, among others,
Wholesale and Retail Trade, and Repair of Motor Vehicles and Motorcycles (WNB 1.42%);
Transportation and Storage (WNB 1.26%); as well as Accommodation and Food Service Activities
(WNB 1.01%), driven by increasing domestic demand during the Christmas and New Year festive
period. Meanwhile, respondents predict a significant decline in terms of Agricultural, Forestry, and
Fishing activities (WNB -1.03%) as the Food Crop and Plantation Crop subsectors enter the planting
season, coupled with higher rainfall that is detrimental to Horticultural Crop subsector performance
(Table 1 - Appendix).
B. Production Capacity
Production Production capacity utilisation increased in the third quarter of 2023 to 75.17% from 74.88%
capacity utilisation
increased in the
in the second quarter of 2023 (Graph 2). Respondents reported broad-based gains across all sectors,
third quarter of except Agriculture, Forestry, and Fishing, led by the Electricity Supply sector (81.94%), Water Supply
2023. sector (76.01%), and Manufacturing Industry (74.38%) (Table 2 - Appendix).
Graph 2 Capacity Utilisation
81.31 81.94
76.01
75.05
74.90 74.38
73.81
73.58
69.55 69.69
74.88
75.17
Business Survey

C. Financial Conditions and Access to Credit
In general, Most respondents reported sound corporate financial conditions in the third quarter of
corporate financial
conditions
2023, as reflected by a 18.71% Net Balance (NB) of liquidity, which is nevertheless lower than the
remained sound in 24.28% recorded in the second quarter of 2023 (Graph 3). The decline was also indicated by a
the third quarter of
decrease in the percentage of respondents reporting looser liquidity conditions in the third quarter
2023, accompanied
by looser access to of 2023 to 24.35% from 29.44% in the previous period (Table 3 - Appendix).
credit.
Graph 3 Liquidity Conditions Graph 4 Profitability Conditions
30.0 25.0
21.22
24.28
25.0 20.0 18.80 18.17
20.46 19.64 16.40
20.0 18.71
15.0
15.0
10.0
10.0
5.0
5.0
0.0 0.0
I II III IV I II III IV I II III I II III IV I II III IV I II III
2021 2022 2023 2021 2022 2023
Corporate profitability also remained sound in the third quarter of 2023, as indicated by an
18.17% NB of profitability, down from 21.22% in the previous period (Graph 4). The percentage of
respondents reporting higher corporate profitability in the third quarter of 2023 decreased to
25.68% from 28.38% in the second quarter of 2023 (Table 3 - Appendix).
On the other hand, respondents confirmed looser access to bank loans in the third quarter
of 2023 as reflected by an increase in the corresponding NB to 4.64% from 4.21% in the second
quarter of 2023. This was also reflected by a modest uptick in the percentage of respondents
reporting looser access to bank loans to 8.90% from 8.82% in the previous period, while the
percentage of respondents reporting tighter access to bank loans decreased to 4.26% from 4.60%
in the reporting period (Table 3 - Appendix).
D. Labour Utilisation
Labour utilisation Labour utilisation remained in an expansionary phase in the third quarter of 2023, with the
remained in an
expansionary WNB decreasing to 3.76% from 3.95% in the second quarter of 2023 (Graph 5). A higher WNB of
phase in the third labour utilisation was reported by respondents in the Mining and Quarrying sector (WNB 2.05%)
quarter of 2023,
with respondents and Manufacturing Industry (WNB 0.11%) in response to increasing production activity. On the other
predicting a hand, moderating labour utilisation was confirmed by respondents in Accommodation and Food
relatively stable
trend in the fourth
Service Activities (WNB 0.13%), along with lower labour absorption in terms of Agriculture, Forestry,
quarter of 2023. and Fishing (WNB -0.32%) as well as Wholesale and Retail Trade, and Repair of Motor Vehicles and
Motorcycles (WNB -0.07%) in line with decreasing business activity (Table 4 - Appendix).
Respondents predict relatively stable labour utilisation in the fourth quarter of 2023, with a
WNB of 3.77%. Several sectors are expected to remain in positive territory, namely Mining and
Quarrying (WNB 1.83%), Financial Services (WNB 0.77%), Education Services (WNB 0.30%), and Real
Estate (WNB 0.28%). In contrast, respondents anticipate lower labour utilisation in Agriculture,
Forestry, and Fishing (WNB -0.31%) as well as Other Services (WNB -0.14%) (Table 4 - Appendix).
Business Survey

Graph 5 Labour Utilisation
(% WNB)
3.95 3.76 3.77
3.33
1.94
E. Selling Price
An increase in the WNB to 14.43% from 12.85% indicated a build-up of inflationary pressures
at the producer level in the third quarter of 2023 (Graph 6). Higher selling prices in the reporting
Producers reported
a build-up of period were driven by increasing prices in the Agricultural, Forestry, and Fishing sector (WNB 2.99%);
inflationary Mining and Quarrying sector (WNB 1.24%), specifically the Oil and Natural Gas Mining subsector;
pressures in the
third quarter of and Manufacturing Industry (WNB 1.84%). Meanwhile, rising selling prices decelerated in terms of
2023, with milder Accommodation and Food Service Activities (WNB 0.43%) and Construction (WNB 1.80%) in line with
inflation forecast in
the fourth quarter lower promotional/marketing costs (Table 5 - Appendix).
of 2023. Respondents forecast milder inflationary pressures in the fourth quarter of 2023, as
indicated by a lower WNB of 11.15% compared to 14.43% in the third quarter of 2023. Milder
inflationary pressures are primarily expected in the Agricultural, Forestry, and Fishing sector (WNB
1.41%) as well as Mining and Quarrying sector (WNB 0.43%) given lower raw material costs. In
addition, rising prices are also expected to moderate in other economic sectors, namely Wholesale
and Retail Trade (WNB 2.35%) as well as Accommodation and Food Service Activities (WNB 0.38%)
in line with yearend promotional strategies (Table 5 - Appendix).
Graph 6 Selling Price
(% WNB)
20.87 21.52
14.43
12.85
11.15
Business Survey

F. Inflation
Respondents In the third quarter of 2023, respondents predicted 3.75% (yoy) average inflation in 2023,
predict 3.75%
inflation in 2023. which is relatively stable compared to the previous projection of 3.76% in the second quarter of 2023
(Graph 7). The latest prediction is within the national inflation target corridor for 2023 of 3.0%±1%.
By sector, the highest inflation rate was predicted by respondents in the Public Administration,
Defence, and Compulsory Social Security sector (4.15%), Other Services (4.10%) as well as Agriculture,
Forestry, and Fishing (4.07%). Conversely, the lowest average rate of 3.37% was predicted by
respondents in the Electricity Supply sector (Table 6 - Appendix).
Graph 7 Inflation
%yoy
6.00 5.51
5.00
4.06 BIBS Q1
4.00 3.68 3.76 BIBS Q2

3.34 3.43 3.75 BIBS Q3
3.21
3.00 2.72
3.13
2.72
2.00
1.87
1.68
1.00
*) Expectation
0.00
2018 2019 2020 2021 2022 2023*
Realized Inflation Inflation-(BIBS)
G. Investment
The corporate sector The corporate sector was more inclined to invest in the third quarter of 2023, as reflected
was more inclined to
by an increase in the WNB of investment to 8.67% from 7.60% in the previous period (Table 7 -
invest in the third
quarter of 2023, with Appendix). By sector, respondents reported higher third-quarter investment realisation in some
respondents economic sectors, primarily Mining and Quarrying (WNB 1.94%), the Manufacturing Industry (WNB
nevertheless
expecting 1.34%) and Financial Services (WNB 0.94%), driven by the purchase of new machinery, heavy
moderation moving equipment and vehicles, as well as building development and/or maintenance (Table 7 - Appendix).
forward.
Looking ahead, respondents expect investment to moderate in the fourth quarter of 2023
in line with seasonal trends, as reflected by a WNB of 5.68%. Moderation is predominantly predicted
in the Mining and Quarrying sector (WNB 0.41%) and Manufacturing Industry (WNB 0.74%).
H. Wages
Wages are still rising
in the second Rising wages have moderated in the second semester of 2023 compared to conditions in
semester of 2023,
despite slower growth the first semester of 2023 and second semester of 2022, as indicated by a decrease in the Net Balance
than in the first (NB) of wages to 12.97% from 42.11% in the first semester of 2023 and 13.62% in the second semester
semester of 2023 and
of 2022. All economic sectors recorded moderation compared to the same period of the previous
second semester of
2022.
Business Survey

year, with Accommodation and Food Service Activities experiencing the deepest decline in the Net
Balance to 17.39%, followed by Information and Communication (NB 13.33%) and the Manufacturing
Industry (NB 11.61%) ((Table 8 - Appendix).
Foreman/supervisor level salaries averaged Rp5.24 million per month in the second
semester of 2023, while employees below the foreman/supervisor level took home an average of
Rp3.37 million per month. By sector, Electricity Supply remunerated the highest wages/salaries in the
reporting period, namely Rp9.14 million per month for a foreman/supervisor and Rp6.0 million per
month for employees below the foreman/supervisor level (Table 9 - Appendix).
I. Profit Margin
Profit margins are Respondents forecast wider profit margins in the second semester of 2023 compared to
expected to increase
in the second conditions in the first semester of 2023 and second semester of 2022, increasing to 17.69% from
semester of 2023 15.53% in the first semester of 2023 and 15.10% in the second semester of 2022. By sector, higher
compared to
conditions in the profit margins were confirmed by respondents in Electricity Supply Sector, Mining and Quarrying
second semester of Sector, as well as Real Estate Sector, increasing respectively to 16.48%, 20.32%, and 19.96% in the
2022 and first
second semester of 2023 from 11.57%, 19.84% and 15.41% in the first semester of 2023 and from
semester of 2023.
10.08%, 14.46%, and 15.65% in the second semester of 2022 (Table 10 - Appendix).
J. Prompt Manufacturing Index – Bank Indonesia2

The latest PMI-BI According to the latest Prompt Manufacturing Index-Bank Indonesia (PMI-BI), Manufacturing
pointed to increasing
Industry performance has remained in an expansionary phase for almost the last two years, increasing
Manufacturing
Industry performance slightly to 52.93% in the third quarter of 2023 from 52.39% in the second quarter of 2023.
in an expansionary Respondents confirmed gains across all PMI-BI components, particularly Production Volume and
phase in the third
quarter of 2023, with Inventory Volume, while Order Volume remained in expansionary territory despite some moderation.
the trend expected to Furthermore, respondents reported a higher PMI-BI reading in most manufacturing subsectors, led
persist in the fourth
quarter of 2023.
by the Transportation Equipment Industry, Machinery and Equipment Industry, as well as the Non-
Metallic Mineral Products Industry.
Respondents expect manufacturing industry performance to remain solid in the fourth

quarter of 2023, as reflected by an expansionary PMI-BI reading above the 50% threshold at 52.25%.
Most PMI-BI components are predicted in an expansionary phase, led by Production Volume,
followed by Inventory Volume and Order Volume. In addition, respondents anticipate most
manufacturing subsectors to occupy expansionary territory, with the highest index readings posted
by the Leather, Leather Products, and Footwear Industry, Transportation Equipment Industry, as well
as the Non-Metallic Mineral Products Industry.
2
Full PMI-BI Report is available: https://www.bi.go.id/en/publikasi/laporan/default.aspx
Business Survey

K. Sectoral Review
Agricultural, Forestry, and Fishing Sector
Agricultural, Forestry, In general, Agricultural, Forestry, and Fishing sector activity moderated in the third quarter
and Fishing sector
activity moderated in
of 2023, as indicated by a decrease in the WNB to 1.18% from 2.34% in the previous period (Graph
the third quarter of 8). Moderation primarily stemmed from the Plantation Crop and Food Crop subsectors (WNB 0.44%)
2023, with a
in line with the dry season (gadu) harvest in West Java, Central Java, and East Java, as well as the
contraction
anticipated in the Fishing subsector (WNB 0.06%).
fourth quarter of
2023.
Consistent with business activity, labour utilisation in the Agricultural, Forestry, and Fishing
sector slumped into a contractionary phase in the third quarter of 2023, as indicated by a WNB of
-0.32%, thus reversing the positive 0.35% recorded in the second quarter of 2023 (Graph 9).
Respondents predict a deeper decline of Agricultural, Forestry, and Fishing sector activity in
the fourth quarter of 2023 based on a contractionary WNB of -1.03% (Graph 8). Business activity in
most subsectors is expected to fade, including the Food Crop subsector (WNB -0.95%) and
Plantation Crop subsector (WNB -0.46%) due to the onset of the planting season, accompanied by
higher rainfall that will impede Horticultural Crop subsector performance (WNB -0.14%)
(Table 1 - Appendix).
Respondents also expect labour utilisation in the Agricultural, Forestry, and Fishing sector
to contract in the fourth quarter of 2023 (Graph 9), as reflected by a WNB of -0.31%. Contractions
are forecast in nearly all subsectors, particularly the Plantation Crop subsector (WNB -0.17%) and
Horticultural Crop subsector (WNB -0.14%) (Table 4 - Appendix).
Graph 8 Business Activity of Graph 9 Labour Utilisation of Agricultural,

Agricultural, Forestry, and Fishing Sector Forestry, and Fishing Sector
(% WNB) (% qtq) (% WNB)

0.60
0.40
0.20
0.00
-0.20
-0.40
-0.60
-0.80
-1.00
I II III IV I II III IV I II III IV*
2021 2022 2023
Mining and Quarrying Sector

Mining and Mining and Quarrying sector activity increased in the third quarter of 2023, with the WNB
Quarrying sector
climbing to 1.43% from 0.62% in the previous period (Graph 10). The Oil and Natural Gas Mining as
activity increased in
the third quarter of well as Metalliferous Ore Mining subsectors maintained positive performance in line with seasonal
2023, with factors, the availability of production facilities, and increasing storage capacity. Meanwhile, an
moderation
predicted in the increase in the corresponding WNB to 2.05% from 1.04% pointed to higher labour utilisation in the
fourth quarter of Mining and Quarrying sector in the reporting period (Graph 11), driven by the Oil and Natural Gas
2023.
Mining as well as Metalliferous Ore Mining subsectors in response to rising production activity.
Business Survey

Respondents expect solid yet moderating Mining and Quarrying sector activity in the fourth
quarter of 2023, as indicated by a WNB of 0.99% (Graph 10), supported by a stable Oil and Natural
Gas Mining subsector as well as expansion forecast in the Metalliferous Ore Mining and Other Mining
and Quarrying subsectors. Similarly, respondents predict labour utilisation to continue growing in
the fourth quarter of 2023, despite moderation to 1.83% from 2.05% in the previous period (Graph
11).
Graph 10 Business Activity of Mining and Quarrying Graph 11 Labour Utilisation of Mining and
Sector Quarrying Sector
(% WNB) (% qtq) (% WNB)

2.50
2.00
1.50
1.00
0.50
0.00
-0.50
-1.00
-1.50
-2.00
2021 2022 2023
Manufacturing Industry
Manufacturing Indications of increasing Manufacturing Industry activity were observed in the third quarter
Industry activity of 2023, with the WNB reaching 2.81% from 2.21% in the second quarter of 2023 (Graph 12).
increased in the
third quarter of Respondents reported positive performance across several subsectors, led by the Transportation
2023, with Equipment Industry (WNB 0.67%), Basic Metals Industry (WNB 0.31%), and Non-Metallic Mineral
moderation
predicted in the
Products Industry (WNB 0.33%), on the back of maintained domestic demand. Increasing
fourth quarter of manufacturing industry activity in the third quarter of 2023 was also consistent with the latest Prompt
2023.
Manufacturing Index-Bank Indonesia (PMI-BI) reading, which increased slightly to 52.93% from
52.39% in the second quarter of 2023 (Graph 13).
In line with business activity, labour utilisation in the Manufacturing Industry increased and
moved out of a contractionary phase in the third quarter of 2023, with the WNB reaching 0.11% to
reverse the -0.16% recorded in the previous period (Table 4 - Appendix). Higher labour utilisation
was predominantly driven by the Food and Beverage Manufacturing Industry (WNB 0.18%), followed
by Paper and Paper Products, Printing and Reproduction of Recorded Media (WNB 0.07%) and the
Basic Metals Industry (WNB 0.03%).
Respondents expect manufacturing industry activity to remain solid in the fourth quarter of
2023 despite moderation, as indicated by a lower WNB of 0.98% from 2.81% in the third quarter of
2023. Respondents predict most manufacturing subsectors to remain in positive territory. Similarly,
the Prompt Manufacturing Index-Bank Indonesia (PMI-BI) is also forecast in an expansionary phase
at 52.25% in the fourth quarter of 2023, despite retreating from 52.93% in the third quarter of 2023.
Several PMI-BI components are expected to track gains, particularly Production Volume (56.30%)
and Inventory Volume (53.80%), while the Order Volume Index will remain in expansionary territory
despite decreasing to 54.15% (Table 11 - Appendix).
Business Survey

In terms of labour utilisation, respondents predict a decline in the fourth quarter of 2023 in
line with moderating business activity. Notwithstanding, the WNB of labour utilisation in the fourth
quarter of 2023 is expected to remain in an expansionary phase at 0.06% (Table 4 - Appendix). By
subsector, respondents expect moderation in the Food and Beverage Manufacturing Industry (WNB
0.12%), as well as Paper and Paper Products, Printing and Reproduction of Recorded Media (WNB
0%) and the Non-Metallic Mineral Products Industry (WNB 0%).
Graph 12 Business Activity of Manufacturing Graph 13 Business Activity of

Industry Sector Manufacturing Industry vs PMI - BIBS
(% WNB) (% qtq)
Construction Sector
Construction activity increased in the third quarter of 2023, as indicated by a higher WNB
Construction
activity increased in of 1.61% compared to 1.31% in the previous period (Graph 14). Most respondents acknowledged
the third quarter of ongoing domestic projects accompanied by seasonal/weather conditions conducive to construction
2023, with
moderation activity for the increase observed in the reporting period. Meanwhile, the WNB of labour utilisation
predicted in the in the Construction sector was positive in the third quarter of 2023 at 0.26%, relatively stable
fourth quarter of
2023.
compared to 0.24% in the second quarter of 2023 (Graph 15).
Respondents predict solid Construction sector activity in the fourth quarter of 2023 despite
moderation due to the completion of construction projects in line with historical trends, with the
WNB of business activity moderating to 1.25% from 1.61% in the previous period (Graph 14). In line
with moderating construction activity, a WNB of 0.10% also points to moderating labour utilisation
expected by respondents in the fourth quarter of 2023 (Graph 15).
Graph 14 Business Activity of Construction Sector Graph 15 Labour Utilisation of Construction Sector
(% qtq) (% WNB)
(% WNB) 0.80
0.60
0.40
0.20
0.00
-0.20
-0.40
-0.60
-0.80
-1.00
-1.20
2021 2022 2023
Business Survey

Wholesale and Retail Trade, and Repair of Motor Vehicles and Motorcycles Sector
Business activity in Business activity in the Wholesale and Retail Trade, and Repair of Motor Vehicles and
the Wholesale and
Retail Trade, and Motorcycles sector moderated in the third quarter of 2023, as reflected by a lower WNB of 0.88%
Repair of Motor from 1.68% in the second quarter of 2023 (Graph 16). Respondents confirmed moderating business
Vehicles and
Motorcycles sector activity in the Wholesale and Retail Trade, except of Motor Vehicles and Motorcycles subsector (WNB
moderated in the 0.23%) given the normalisation of demand after the Eid-ul-Fitr national religious holidays (Table 1 -
third quarter of 2023,
Appendix).
with increasing
activity predicted in Labour utilisation decreased in the reporting period in line with moderating business activity,
the fourth quarter of
2023. as indicated by a contractionary WNB of -0.07% to reverse the positive 0.92% recorded in the
previous period (Graph 17). The main contributor to lower labour utilisation in the reporting period
was the Wholesale and Retail Trade, except of Motor Vehicles and Motorcycles subsector (WNB -
0.20%) (Table 4 - Appendix).
Respondents expect business activity to rebound in the Wholesale and Retail Trade, and
Repair of Motor Vehicles and Motorcycles sector in the fourth quarter of 2023, with the WNB
increasing to 1.42% from 0.88% in the previous period (Graph 16). Activity in both subsectors, namely
the Sale of Motor Vehicles, Motorcycles, and Repair subsector (WNB 0.75%) as well as the Wholesale
and Retail Trade subsector (WNB 0.67%) expected to increase, driven by a seasonal spike in demand
during the Christmas and New Year festive period.
Looking ahead, respondents expect labour utilisation to improve in the Wholesale and Retail
Trade, and Repair of Motor Vehicles and Motorcycles sector in the fourth quarter of 2023, with the
WNB improving to -0.02% despite remaining in a contractionary phase (Graph 17). By subsector,
respondents expect labour absorption in the Sale of Motor Vehicles, Motorcycles, and Repair
subsector to increase (WNB 0.18%), but remain stable in terms of the Wholesale and Retail Trade,
except of Motor Vehicles and Motorcycles subsector (WNB -0.20%) (Table 4 - Appendix).
Graph 16 Business Activity of Wholesale and Retail Graph 17 Labour Utilisation of Wholesale and
Trade, and Repair of Motor Vehicles and Retail Trade, and Repair of Motor
Motorcycles sector Vehicles and Motorcycles sector
(% WNB) (% qtq) (% WNB)

1.50
1.00
0.50
0.00
-0.50
-1.00
-1.50
2021 2022 2023
Business Survey

APPENDIX
Table 1 Business Activity Development and Outlook

(% Weighted Net Balance - WNB)
*) Expectation
Business Survey

Table 2 Production Capacity Utilisation
(Percentage)
Table 3 Indicator of Financial Condition and Access to Financing

(Net Balance - NB)
INDICATORS
Financial condition over past three months:

- Liquidity
Better 27.45 27.02 29.44 24.35
Same 66.62 66.39 65.39 70.00
Worse 5.93 6.59 5.16 5.65
Net Balance (% Good - % Bad) 21.52 20.43 24.28 18.71
- Rentability
Better 26.91 26.62 28.38 25.68
Same 65.61 64.07 64.47 66.81
Worse 7.48 9.30 7.15 7.51
Net Balance (% Good - % Bad) 19.43 17.32 21.22 18.17
Access to credit over past three months:
Easy 9.06 8.87 8.82 8.90
Normal 86.44 86.55 86.58 86.85
Tight 4.50 4.57 4.60 4.26
Net Balance (% Easy - % Tight) 4.56 4.30 4.21 4.64
Business Survey

Table 4 Labour Utilisation
(Weighted Net Balance – WNB)
*) Expectation
Business Survey

Table 5 Selling Price
*) Expectation
Business Survey

Table 6 Annual Inflation Expectations
(% of respondents)
3.54 4.41 3.76 4.07

3.73 3.90 3.20 3.54
3.84 3.96 3.91 3.83
3.24 3.56 3.69 3.37
3.37 3.50 3.78 3.41
3.78 3.98 3.73 3.88
3.99 3.75 3.97 4.02
3.37 4.17 3.67 3.60
3.47 4.66 3.75 3.63
3.11 3.83 3.57 3.50
3.66 4.51 3.79 3.64
3.37 6.00 4.45 3.98
3.47 4.03 3.48 3.60
3.22 3.72 3.39 4.15
2.71 3.38 3.68 3.97
3.26 3.57 3.86 3.40
3.11 4.02 4.20 4.10
TOTAL 3.43 4.06 3.76 3.75
National Inflation Target 3±1 3±1
Table 7 Realisation of Investment

7.75
*) Expectation
Business Survey

Table 8 Wages / Salaries
(% Net Balance – NB)
AGRICULTURE, FORESTRY AND FISHERY 14.55 84.94 0.52 14.03 30.83 68.67 0.50 30.33 12.02 87.47 0.51 11.51
MINING AND QUARRYING 11.54 87.18 1.28 10.26 31.15 68.85 0.00 31.15 14.53 83.76 1.71 12.82
MANUFACTURING 14.87 84.49 0.63 14.24 51.44 47.28 1.28 50.16 13.76 84.08 2.16 11.61
ELECTRICITY AND GAS SUPPLY 24.19 75.81 0.00 24.19 45.61 52.63 1.75 43.86 26.00 74.00 0.00 26.00
WATER SUPPLY, SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES 16.07 82.14 1.79 14.29 26.53 71.43 2.04 24.49 9.52 90.48 0.00 9.52
CONSTRUCTION 7.48 90.19 2.34 5.14 27.03 71.43 1.54 25.48 11.19 87.76 1.05 10.14
WHOLESALE AND RETAIL TRADES, REPAIR OF MOTOR VEHICLE AND MOTORCYCLES 11.64 87.82 0.55 11.09 48.59 50.28 1.13 47.47 11.01 87.92 1.07 9.95
TRANSPORT AND STORAGE 14.04 83.63 2.34 11.70 41.06 57.49 1.45 39.61 12.75 87.25 0.00 12.75
ACCOMMODATION AND FOOD SERVICE ACTIVITIES 21.15 77.42 1.43 19.71 57.73 41.24 1.03 56.70 19.57 78.26 2.17 17.39
INFORMATION AND COMMUNICATION 13.41 85.37 1.22 12.20 52.00 48.00 0.00 52.00 14.67 84.00 1.33 13.33
FINANCIAL AND INSURANCE SERVICES 22.17 77.83 0.00 22.17 52.44 47.15 0.41 52.03 25.56 73.09 1.35 24.22
REAL ESTATE ACTIVITIES 10.00 88.57 1.43 8.57 34.09 65.91 0.00 34.09 11.46 87.50 1.04 10.42
BUSINESS SERVICES 18.03 80.33 1.64 16.39 35.94 64.06 0.00 35.94 12.50 85.94 1.56 10.94
PUBLIC ADMINISTRATION AND DEFENSE, COMPULSORY SOCIAL SECURITY 7.69 92.31 0.00 7.69 28.57 68.57 2.86 25.71 5.48 94.52 0.00 5.48
EDUCATION 12.71 86.44 0.85 11.86 17.98 82.02 0.00 17.98 13.73 86.27 0.00 13.73
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES 11.67 88.33 0.00 11.67 45.12 53.66 1.22 43.90 18.60 81.40 0.00 18.60
OTHER SERVICES ACTIVITIES 10.00 90.00 0.00 10.00 41.18 58.82 0.00 41.18 14.29 85.71 0.00 14.29
Table 9 Average Wages / Salaries

(IDR per Month)
AGRICULTURE, FORESTRY AND FISHERY 2,188,225 3,183,708 2,189,911 3,108,413 2,355,188 3,283,183
MINING AND QUARRYING 3,323,191 6,021,716 3,213,227 5,441,696 3,060,343 5,130,996
MANUFACTURING 2,680,840 3,997,439 3,166,371 4,792,675 3,065,612 4,448,147
ELECTRICITY AND GAS SUPPLY 4,633,359 7,820,315 5,817,459 9,606,016 6,003,748 9,147,398
WATER SUPPLY, SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES 3,340,730 5,408,943 3,516,232 5,637,720 3,398,847 5,447,598
CONSTRUCTION 2,845,794 4,185,619 3,217,886 4,621,132 3,253,837 4,735,052
WHOLESALE AND RETAIL TRADES, REPAIR OF MOTOR VEHICLE AND MOTORCYCLES 2,595,888 3,940,976 2,849,563 4,446,551 2,855,116 4,442,161
TRANSPORT AND STORAGE 3,161,281 4,863,283 3,704,444 5,632,262 3,770,676 5,661,761
ACCOMMODATION AND FOOD SERVICE ACTIVITIES 2,661,196 3,859,784 2,817,374 4,084,067 2,926,052 4,342,279
INFORMATION AND COMMUNICATION 2,864,143 4,680,831 3,177,786 5,318,772 3,157,796 5,476,360
FINANCIAL AND INSURANCE SERVICES 4,049,541 7,301,906 4,573,582 8,305,650 4,364,276 8,027,915
REAL ESTATE ACTIVITIES 2,528,376 3,786,821 3,041,968 4,882,368 3,111,548 4,890,854
BUSINESS SERVICES 2,879,699 4,144,112 3,193,874 4,983,505 3,337,186 4,881,183
PUBLIC ADMINISTRATION AND DEFENSE, COMPULSORY SOCIAL SECURITY 2,752,722 4,904,197 2,684,343 4,928,630 3,739,948 5,748,814
EDUCATION 2,327,057 4,168,983 2,533,388 3,891,500 2,609,432 3,920,038
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES 2,796,133 4,558,352 3,145,852 4,864,588 3,129,667 5,095,998
OTHER SERVICES ACTIVITIES 2,464,953 3,688,717 2,697,059 3,876,471 3,221,613 4,502,566
Table 10 Profit Margin

(%)
AGRICULTURE, FORESTRY AND FISHERY 19.56% 13.60% 17.91% 12.66% 23.57% 17.40%
MINING AND QUARRYING 14.46% 8.64% 19.84% 12.75% 20.32% 12.05%
MANUFACTURING 13.63% 10.02% 15.13% 10.50% 18.32% 13.42%
ELECTRICITY AND GAS SUPPLY 10.08% 1.21% 11.57% 1.93% 16.48% 1.42%
WATER SUPPLY, SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES 11.25% 1.00% 12.05% 0.27% 11.86% 0.24%
CONSTRUCTION 14.06% 9.97% 13.81% 9.99% 16.30% 11.49%
WHOLESALE AND RETAIL TRADES, REPAIR OF MOTOR VEHICLE AND MOTORCYCLES 14.68% 10.73% 14.02% 9.16% 15.63% 11.09%
TRANSPORT AND STORAGE 16.83% 12.36% 18.97% 12.35% 20.16% 13.60%
ACCOMMODATION AND FOOD SERVICE ACTIVITIES 20.43% 15.68% 21.33% 16.45% 22.72% 16.07%
INFORMATION AND COMMUNICATION 15.17% 11.78% 17.75% 12.74% 17.73% 16.88%
FINANCIAL AND INSURANCE SERVICES 13.33% 9.23% 16.05% 10.74% 15.82% 10.90%
REAL ESTATE ACTIVITIES 15.65% 11.54% 15.41% 10.81% 19.96% 14.63%
BUSINESS SERVICES 17.42% 13.02% 15.43% 9.50% 18.83% 12.02%
PUBLIC ADMINISTRATION AND DEFENSE, COMPULSORY SOCIAL SECURITY 10.13% 6.02% 8.91% 6.99% 11.41% 8.11%
EDUCATION 13.15% 9.45% 13.51% 7.54% 15.20% 10.49%
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES 16.84% 13.44% 15.79% 11.59% 18.59% 13.91%
OTHER SERVICES ACTIVITIES 20.07% 12.47% 16.47% 10.71% 17.81% 11.07%
Business Survey

Table 11 Prompt Manufacturing Index - Bank Indonesia
(% Index)
*) Expectation
Business Survey

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METHODOLOGY
The Business Survey has been conducted quarterly since the first quarter of 1993. In Quarter III-2023, the Survey was
extended to 3,170 enterprises spread throughout all regions of the Indonesian archipelago, selected using purposive
sampling. Statistically, the respondents have a sampling error of 2% at a 5% level of significance. Data is collated through
respondent questionnaires either by hardcopy or by online on BI website. The data is calculated using the net balance
method, namely by calculating the difference between the percentage of respondents whose answers increased, those
whose answers decreased and those whose answers remained the same. In the case of calculating the net balance of
business activity, selling price and labour utilization are calculated using the net weighted balance method. The weight
reflected the contribution of each sector to GDP. In Quarter I-2014, the Survey has been conducted in the last month of
the current quarter (one month earlier than usual). In addition, the questionnaire improvement and integrated web-based
application both were developed. Starting Quarter I-2023, there was update of the methodology from the base year 2000
Business Survey
to 2010.

Bank Indonesia Business Survey Quarter 3 - 2023' '

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QUARTER III - 2023 BUSINESS ACTIVITY REMAINS SOLID

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16.66 16.34 16.62

Graph 2 Capacity Utilisation

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2021 2022 2023 2021 2022 2023

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Graph 6 Selling Price

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4.00 3.68 3.76 BIBS Q2

Realized Inflation Inflation-(BIBS)

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J. Prompt Manufacturing Index – Bank Indonesia2

Respondents expect manufacturing industry performance to remain solid in the fourth

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Graph 8 Business Activity of Graph 9 Labour Utilisation of Agricultural,

(% WNB) (% qtq) (% WNB)

Mining and Quarrying Sector

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(% WNB) (% qtq) (% WNB)

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Graph 12 Business Activity of Manufacturing Graph 13 Business Activity of

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(% WNB) (% qtq) (% WNB)

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Table 1 Business Activity Development and Outlook

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Table 3 Indicator of Financial Condition and Access to Financing

Financial condition over past three months:

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3.54 4.41 3.76 4.07

Table 7 Realisation of Investment

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Table 9 Average Wages / Salaries

Table 10 Profit Margin

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