JAKARTA – Indonesia's Manufacturing Purchasing Managers' Index (PMI) continues to expand. This can be seen from the level which reached 51.9 in April 2022 from the level of 51.3 in March 2022.

"The increase in the Manufacturing PMI shows that the effectiveness of the policy mix for handling the Covid-19 pandemic and the better speed of vaccination have been able to give public confidence to carry out activities, especially in facing Ramadan and preparations for Eid al-Fitr," said Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu in his statement, Thursday 5 May.

Febrio continued, thus, this opportunity is well utilized by the business world. Together with the strengthening of exports, the strengthening of the manufacturing sector is expected to support the solid performance of Indonesia's economic growth in the second quarter of 2022.

The sustainability of this economic recovery, he said, is expected to be maintained, supported by the strengthening of demand during the month of Ramadan and Eid al-Fitr in line with the policy of joint leave and Eid homecoming.

"Meanwhile, in the midst of the ongoing geopolitical conflict, export demand for Indonesian manufactured products, especially commodity-based products, increased in April. This was reflected in export growth which reached 35.2 percent (yoy) in Quarter I-2022," he continued.

Furthermore, he added, along with the increase in demand, business actors continued to increase their production capacity by continuing to create new jobs and increase supplies. Job creation was recorded at the highest index in history, at least in the last 11 years.

In addition, purchases of supplies will also continue to meet the demand for increased production, which is predicted to persist during the economic recovery period. This trend is expected to continue so that the multiplier effect of the recovery in the manufacturing sector on improving overall economic conditions can continue to increase in a sustainable and inclusive manner.

In general, Indonesian manufacturing industry players are still optimistic about the pace of future expansion. Strengthening public consumption and export demand are expected to remain on a positive trend in the future.

However, rising price pressures will be a major risk for the continued pace of world manufacturing expansion, including Indonesia's.

“In order to sustain consumption and production strengthening amid price pressures, the Government is present both through price and non-price interventions such as in the form of social protection for the poor and vulnerable, as well as strong coordination between institutions to maintain a balance between supply and demand from the public. ," closed Febrio.

For your information, to maintain the momentum of economic recovery in general, both from the producer and consumer side, the Government through the APBN also continues to support the sustainability of the PC PEN Program such as health care (acceleration of vaccinations and boosters), community protection (PKH, basic necessities, village BLT), and strengthening economic recovery (Tourism, Infokom, MSME support, and tax incentives).


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