JAKARTA The slick score of Indonesian manufacturing Purchasing Managers (PMI) which is in the expansion zone for 16 consecutive months leaves its own records. This is because the performance of the manufacturing sector has the opportunity to enter the contraction level due to the slowdown in the global economy at the beginning of this year.
This is reflected in the condition of a number of Indonesian trading partners who continue to experience setbacks by the manufacturing PMI. Take for example South Korea. The friendly country in East Asia has always been known as one of the main goals of exporting national entrepreneurs.
As of the end of December 2022, South Korea was under pressure as reflected in the manufacturing PMI of 48.2 (more than 50 means expansive). Not only that, several Indonesian traditional markets such as Japan, Malaysia, and Vietnam also experienced the same thing with PMI Manufacturing 48, 47, and 46, respectively.
Likewise in developed countries such as the United States and Britain which shows a trend of contraction and slowdown.
This situation has made the government begin to focus on boosting exports to non-traditional markets. One of the most reliable is India.
The country of Vrindavan is arguably one of Indonesia's saviors amid continued global uncertainty. How not, India's manufacturing activities as a goal of diversifying the export market continue to strengthen at a fairly high level.
Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said India's manufacturing PMI was recorded to have expanded for 18 consecutive months, and increased in December at the level of 57.8 (November 55.7).
"This also encourages Indonesia's export growth to India to reach 79 percent throughout 2022 (year to date/ytd)," he said in a written statement quoted by the editor on Wednesday, January 4.
Febrio explained that the potential for market development to India is still wide open. This assumption is clearly seen in the increase in Indonesia's annual exports (year on year/yoy) by 32.5 percent.
"This number indicates that export performance prospects are still strong in 2023," he stressed.
As for domestically, Indonesia's manufacturing PMI is perched at 50.9 as of December 2022 from the previous 50.3 in November 2022.
"The optimism of manufacturing industry players is indicated to be improving, as shown by the growth in supplies, both input and goods, ready to sell, to anticipate an increase in demand in the near future," closed Febrio.
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