Bank Indonesia confident Bali setting the right course for investments and growth in 2018
Bank Indonesia (BI) have released figures suggesting Bali’s Q1/2018 business activities reflect a significant increase compared to the last Quarter of 2017.
Photo by Artem Bali on Unsplash
Investments in Bali setting sail to a bright future in 2018 according to Bank Indonesia.
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Bank Indonesia conducted a Q1/2018 Business Activity Survey recently with 134 participants in Bali say Arah, and the results indicate an increase of 20.45% in the Weighted Net Balance (WNB) of business activities compared to Q4/2017.
WNB is used to indicate the expected direction of change of a particular industry or sector by calculating the difference between the weighted percentages of ‘ups’ and ‘downs’, so when Bank Indonesia releases a report suggesting it’s in excess of 20% from one quarter to the next, investors should be taking note.
Business optimism is a driving force for investment, and according to Arah, Bank Indonesia is confident investment in Bali will accelerate and grow.
Azka Subhan, the Deputy Head of Bank Indonesia’s representative office in Bali, said, “the increase in investment is noticeable in the agriculture, livestock, forestry and fishery sectors, which rose from 1.08% to 14% in the first quarter of this year.”
Investments in electricity, gas and water, however, decreased from 0.58% down to 0.44%, which could be connected to politically motivated obstacles the local government seems to be putting in the way of initiatives aimed at developing alternative power, solving waste and trash issues and water management.
Azka suggested this recovery in business performance could also be seen in a 5.47 point improvement in net liquidity compared to Q4 of 2017.
Berita Bali notice the employment rate has also increased to 3.55% from a negative 4.97% in Q4 of 2017, and a negative 2.75% in Q1 of 2017. This increase, they say is expected to hold steady at 3.25% in Q2 of 2018.
Azka went on to note that building was one such sector where employment rates have soared.
Sources: Berita Bali, Arah, Bank Indonesia