BRI UMKM Business Index Shows Continued Expansion in Q3 2025

Positive Trends in UMKM Sector

PT Bank Rakyat Indonesia (BRI) released its UMKM Business Index for Q3 2025, showing that UMKM business activity remains in expansion territory with an index value of 101.9. The BRI Research Institute conducted the survey between September 21 and October 4, 2025, involving 7,064 respondents across 33 provinces in Indonesia.

Key Findings

• The Business Expectations Index for Q4 2025 rose to 120.7 from 116.5 in Q3 2025, indicating growing optimism among UMKM entrepreneurs
• The construction sector recorded the strongest performance at 112.0, supported by government and private projects
• Agricultural sector showed accelerated expansion due to affordable input prices and favorable weather conditions
• Mining sector remained expansive but slowed due to high rainfall and regional regulations limiting sand mining

Sectoral Performance

The survey revealed varied performance across different sectors:

1. Construction Sector: Recorded the highest index at 112.0, driven by increased government and private projects towards year-end
2. Agricultural Sector: Showed significant expansion due to stable input prices and favorable weather conditions that boosted productivity
3. Mining Sector: Remained in expansion territory but experienced slower growth due to high rainfall and regulatory constraints on sand mining
4. Manufacturing and Trade Sectors: Experienced slowdown due to normalizing demand post-HBKN, rising input prices, and weak consumer purchasing power

Business Sentiment and Expectations

The Business Sentiment Index stood at 111.9 in Q3 2025, indicating that more entrepreneurs had positive than negative assessments. Expectations for Q4 2025 strengthened to 134.8 from 133.3 in the previous quarter, supported by positive outlook on business prospects and national economic growth.

Conclusion

The continued expansion in UMKM business activity, coupled with improving business expectations, suggests a positive outlook for Indonesia's UMKM sector. BRI's survey provides valuable insights into the current state and future prospects of UMKM businesses, highlighting both the challenges and opportunities in various sectors.