The Bali Representative Office of Bank Indonesia has reported a strong increase in Bali’s business performance in Q3 2024. The region’s Weighted Net Balance reached 65.08%, a rise from the previous quarter’s 40.60%.
Erwin Soeriadimadja, Head of Bank Indonesia’s Bali Office, explained that growth is evident across several sectors, including trade, accommodation, and food and beverage, driven by peak season demand in July and August 2024, particularly in the tourism industry.
“Additionally, real estate activities saw growth in line with ongoing public and private projects throughout Q3 2024,” Erwin stated in a press release cited by bisnis.com on Monday (4/11/2024).
Looking forward, respondents project a continued positive trend for Bali’s business activities in Q4 2024, with forecasted Weighted Net Balance at 65.54%.
This growth is largely attributed to expectations in the transportation and warehousing sectors, which are anticipated to benefit from high demand during the national holiday season, including Christmas and New Year.
The Quarterly Business Activity Survey conducted by Bank Indonesia offers insights into business financial conditions, economic trends, and inflation expectations.
In Bali, the survey covered 130 business participants from across 17 business sectors, using a weighted net balance method that considers both increased and decreased responses, adjusted by sector weight.
Indonesia’s National Business Outlook in Q3 2024: Stable Performance
At the national level, Bank Indonesia’s SKDU indicates stable business activity across Indonesia in Q3 2024, with an SBT of 14.40%.
Bank Indonesia’s Executive Director of Communications, Ramdan Denny Prakoso, noted that all business sectors experienced positive growth, particularly in mining, construction, and information and communication sectors. This growth aligns with sustained building activity and stable demand, as reported by liputan6.com.
“Production capacity utilization remained steady at 73.13% in Q3 2024,” Ramdan stated.
In addition, businesses’ overall financial health, including liquidity and profitability, remained robust, supported by easier access to credit.
Respondents anticipate continued growth in Q4 2024, with an SBT of 13.42%, especially in the transportation, warehousing, and accommodation sectors, spurred by holiday activities during peak season around Christmas and New Year.
Previously, the World Bank’s Chief Economist for East Asia and the Pacific, Aditya Mattoo, stated that Indonesia was one of the countries which projected to experience economic growth.
“Indonesia’s ongoing economic resilience, with growth projected at 5% to 5.1% in 2024.” Mattoo highlighted in the Media Update-East Asia Pacific Economic Update-October 2024 webinar.
This growth is fueled by steady private sector consumption, investment demand, and stable government spending. Mattoo noted that investment has surged due to monetary easing policies, with additional support from infrastructure-focused legislation.
The combination of steady consumption, rising investment, and stable government spending is anticipated to bolster Indonesia’s economic growth into 2024.
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Sources: bisnis.com, liputan6.com
Image source: pexels.com
