Industry Roar Gets Louder, PMI Manufacturing Improves Expansion Level

JAKARTA - The Ministry of Industry (Kemenperin) reports that Indonesia's Manufacturing Purchasing Managers' Index (PMI) continues to increase to 53.7 in January 2022 compared to December 2021 which was at the level of 53.5.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the score exceeded the average Manufacturing PMI of ASEAN countries (52.7), Malaysia (52.8), Philippines (50.0), South Korea (51.9), Russia (51,8), and China (49,1).

“We are very grateful to the manufacturing industry players in the country. This good news is a signal or indicator that industry players are increasingly optimistic about the current economic conditions," he said in an official statement, Wednesday, February 2.

According to the Minister of Industry, the manufacturing industry sector continues to play an important role for the national economy.

"This important role can be seen from the macro performance of the manufacturing industry sector in several indicators, for example from investment realization, export achievements, and the addition of workers," he said.

In terms of exports, the manufacturing industry continues to provide the largest contribution. It is recorded that the export value of the manufacturing industry in 2021 will be 177.10 billion US dollars or contribute up to 76.49 percent of total national exports.

This achievement exceeded the value of manufacturing exports throughout 2020 of IDR 131 billion and was even higher than the export achievement of 2019 which was at IDR 127.38 billion.

"Various strategic policies have been carried out by the government in accelerating the national economic recovery, including providing a stimulus for industrial players to be productive and competitive," said the Minister of Industry.

In VOI's note, the manufacturing performance is also evident from the success of this sector in absorbing investment. It was revealed that this sector posted a total investment of IDR 325.4 trillion during the past year.

This figure is equivalent to 104 percent of the RPJMN of IDR 864 trillion and 101 percent of the target mandated by President Jokowi of IDR 900 trillion.