Despite The Suspension, The Performance Of The Processing Industry Is Still In The Expansion Phase

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) revealed that the performance of the manufacturing sector in the fourth quarter of 2022 remained strong and was still in the expansion phase.

This is reflected in BI's Prompt Manufacturing Index (PMI) which is 50.06 percent or (expansion of more than 50 percent).

Head of the BI Communication Department Erwin Haryono said that the record was lower when compared to the third quarter of 2022 which was at the level of 53.71 percent.

"The expansion occurs in the majority of components forming PMI-BI, especially the total volume of orders, the volume of finished goods supplies, and production volume," he said in a press release Friday, January 13.

According to Erwin, based on its sub-sector, expansion occurs in cement and non-metal excavation goods, textiles, leather and footwear goods, transportation equipment, machinery and equipment, paper and printed goods, as well as food, beverages, and tobacco.

The development of PMI-BI is in line with the development of manufacturing sector activities as a result of the Bank Indonesia Business Activity Survey (SKDU) which is still growing despite slowing down, with a Weighted Net Balance (SBT) of 1.04 percent.

Meanwhile, in the first quarter of 2023, the performance of the manufacturing sector is estimated to increase by 53.30 percent.

Meanwhile, based on its constituents, all components are recorded to increase/improve, where the highest increase in production volume, total order volume, and finished inventory volume

Erwin revealed that all sub-sectors of the processing industry are predicted to be in the expansion phase with the highest index in the textile, leather and footwear sub-sector.

"Other recorded increasing sub-sectors are the sub-sector of wood goods and other forest products, fertilizers, chemicals and rubber goods, as well as basic metals of iron and steel," he concluded.