The Performance Of The Indonesian Processing Industry Soared At The Beginning Of The Year

Illustration (Photo: Doc. Antara)

JAKARTA The Bank Indonesia (BI) study stated that the Business Field Performance (LU) of the Processing Industry in early 2023 increased and was still in the expansion phase.

Head of the BI Communication Department Erwin Haryono said this was reflected in PMI-BI in the first quarter of 2023 of 50.75 percent, higher than 50.06 percent in the previous quarter.

"The increase occurred in all components forming PMI-BI, especially production volume, order volume, and finished goods inventory volume which are in the expansion phase (index>50)," he said in a written statement on Friday, April 14.

According to Erwin, based on business sub-fields, the increase occurred mainly in the tobacco processing industry, the machinery and equipment industry, and the transportation equipment industry.

"The development of PMI-BI is in line with the development of LU activities in the business activity processing industry (SKDU) of Bank Indonesia which recorded an increase with a Weighted Net Balance (SBT) of 1.54 percent," he said.

Erwin explained, in the second quarter of 2023, the performance of the manufacturing industry LU is predicted to increase again with an index of 54.79 percent or higher than 50.75 percent in the previous quarter.

Based on the shaping component, all components are recorded to be increasing and in the expansion phase with the highest increase occurring in the volume of finished goods inventory, the amount of labor, and the volume of production.

Then, a number of business subfields in the processing industry are expected to improve from the contraction phase to expansion, especially in the furniture industry and rubber industry, rubber and plastic goods.

"In addition, several business sub-fields are expected to increase, especially in the paper and goods industry, printing and reproducing the recorded media, the textile and finished clothing industry, as well as the traditional chemical, pharmaceutical and drug industry," Erwin concluded.