Indonesian Manufacturing PMI Is In The 50.3 Expansion Zone, Head Of BKF: Other Countries Instead Of Natural Contraction

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) said that the Purchasing Managers' (PMI) of the manufacturing sector was at the level of 50.3 in November 2022. Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu said the score made Indonesia's productive sector continue to be expansive with books above level 50.

Even so, he highlighted that the November achievement slowed when compared to October which was at 51.8.

"The government remains optimistic that domestic demand is still quite strong, as shown by domestic consumption stability to date," he said during a press statement, quoted Friday.

Febrio also said that job opening is also still expansionary and is expected to be consistent.

"The manufacturing sector, which is still expansive to date, is one of the important factors in maintaining the sustainability of domestic economic recovery amid increased risks and uncertainty in the global economy," he said.

According to Febrio, Indonesia's manufacturing expansion occurred amidst the weakening of manufacturing PMIs in several countries, which even began to contract, such as Vietnam 47.4 (October 50.6) and Japan 49.0 (October 50.7).

"Several other countries have also not managed to get out of the contraction zone, such as Myanmar 44.6 (October 45.7) and Malaysia 47.9 (October 48.7)," he said.

Furthermore, Sri Mulyani's subordinate revealed that overall, optimism in the business world is still maintained with the stable condition of the pandemic.

"We will continue to maintain this with the hope that the recovery of demand will continue to strengthen even though some respondents are starting to anticipate the risk of global economic turmoil," concluded Head of BKF Febrio Kacaribu.