According to the Index of SME Businesses for Q1-2023 and Expectations for Q2-2023 by PT Bank Rakyat Indonesia (Persero) Tbk, small and medium-sized enterprises (SMEs) in Indonesia are still thriving in Q2-2023, with an expansion in business continuing. The factors driving this expansion include a return to normalcy after the pandemic and an increase in purchasing power, which have led to an increase in demand for goods and services. In addition, the harvest season for food crops has started in some production centers, with prices remaining attractive entering the National Religious Holiday, Idul Fitri, which has driven up prices for goods and services.
Meanwhile, as Q2-2023 approaches, SMEs remain optimistic that their business activities will continue to grow. This is reflected in the increase in expectations for the SME business index for the next three months, which rose to 131.9 from the previous period's expectation index of 130.1. This increase in expectations is supported by the celebration of Idul Fitri, which drives up demand and prices for goods and services, the peak harvest season for food crops that will occur in Q2-2023, and the increasingly conducive weather conditions for the mining, construction, agriculture, and marine fisheries sectors. The research also revealed that SME business expansion is happening in most sectors, with the agricultural sector actually improving compared to the previous quarter due to the start of the harvest season for food crops. However, the production of some agricultural commodities has been disrupted due to high rainfall, the palm oil trek season, and expensive fertilizer.
