BRI MSME Business Index Shows Rising Optimism in Q3 2025

Business Activity Continues to Expand

PT Bank Rakyat Indonesia (BBRI) has released its UMKM Business Index for the third quarter of 2025, indicating that business activity among Micro, Small, and Medium Enterprises (MSMEs) continues to expand. The index value stood at 101.9, confirming the ongoing expansion phase. More significantly, business optimism has shown a marked improvement, with the Business Expectations Index rising to 120.7 in Q3 2025 from 116.5 in the previous quarter.

Key Factors Driving MSME Growth

According to Akhmad Purwakajaya, BRI's Micro Banking Director, the expansion is supported by several reinforcing factors. Stable and readily available input prices have played a crucial role, particularly in boosting productivity in the agricultural sector and fisheries. Favorable weather conditions have also contributed to this positive trend. Additionally, the increase in selling prices of agricultural, livestock, and fisheries commodities has led to higher revenues in these sectors.

Government and Private Projects Provide Additional Boost

The surge in government and private projects towards the end of the year has provided significant impetus, especially to the construction sector. This has created a positive ripple effect across various related industries, further supporting MSME growth. The combination of these factors has resulted in improved business performance and heightened optimism among MSME players.

Implications for Future Growth

The positive outlook reflected in BRI's UMKM Business Index suggests continued growth momentum for MSMEs in the coming period. With stable input prices and government support through various projects, the foundation appears strong for sustained business expansion. BRI's ongoing monitoring through this index will be crucial in tracking the evolving business sentiment and activity among Indonesia's vital MSME sector.