- Dok: Kemenperin
VIVA English Site – The Ministry of Industry conveyed that the increase in production and expansion of new domestic demand pushed the Purchasing Manager's Index or Manufacturing PMI in Indonesia in September 2022. The Manufacturing PMI was recorded at 53.7, or up from 51.7 compared in August.
The results of the S&P Global Survey show that Indonesia's manufacturing sector expansion rate in September was the fastest in eight months and it was solid overall.
The Minister of Industry, Agus Gumiwang Kartasasmita in Jakarta on October 3, 2022, said that the increase in Indonesia's Manufacturing PMI was because of the ability of the industry.
"The increase in Indonesia's Manufacturing PMI this time is also due to the ability of the industry. These include efficiency due to the use of technology, increased capacity of industrial human resources, and easy access to raw materials,” Agus Gumiwang Kartasasmita explained in Jakarta.
Menteri Perindustrian, Agus Gumiwang Kartasasmita.
- Dok: Kemenperin
According to the Kemenperin.go.id site, at the ASEAN level, Indonesia also showed the strongest improvement in the health of the manufacturing sector, as manufacturing conditions improved across the region.
Indonesia's Manufacturing PMI in September 2022 surpassed the World Manufacturing PMI (50.3), ASEAN (53.5), Malaysia (49.1), Vietnam (52.5), and the Philippines (52.9), also higher than China (48.1), Japan (50.8), and South Korea (47.6).
Minister Agus Gumiwang stated that Indonesia's Manufacturing PMI which increased again in September 2022 shows the performance of the industrial sector is getting better and shows stable development.
Agus added that the resilience of the manufacturing industry has strengthened as evidenced by the PMI performance rising to 53.7 in September 2022.
“The maintenance of the supply chain in the industrial sector certainly supports an increase in productivity. This effort continues to be driven through strategic policies to boost the competitiveness of the national industry,” Agus Gumiwang Kartasasmita remarked.
S&P Global saw a decline in foreign demand for the Indonesian companies surveyed. Regarding this, the Minister of Industry argued, the decline in exports occurred because destination countries such as China, the United States, and European countries experienced inflation which resulted in pressure on the exports of several Indonesian manufactured products.
However, CPO exports from Indonesia have returned to normal after not being optimal previously.
Rising demand in September 2022 also supported the growth of other indices, such as employment and purchasing activity. This condition was also helped by lower inflation and output costs.
S&P Global Market Intelligence economist, Laura Denman said input cost inflation and selling prices eased to 20-month and 15-month lows, respectively.
