The Boost Of The Economy Is Getting Faster, Indonesia's Manufacturing PMI Is Strengthening Again

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Ministry of Finance (Kemenkeu) responded positively to the Purchasing Managers' Index (PMI) of Indonesian manufacturing which was at the level of 52.5 in June 2023. This figure is better than May 2023 which amounted to 50.3.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said this strengthening was driven by the level of demand that was still resilient.

"In addition, Indonesia also recorded an increase in production capacity and labor needs," he said in a written statement on Tuesday, July 4.

According to Febrio, the ASEAN area, the performance of the manufacturing sector, shows various developments. Thailand and Myanmar were recorded as expansive in June, namely at 53.2 and 50.4. Meanwhile, Malaysia and Vietnam are still contracting at 47.7 and 46.2.

"The increase in national manufacturing PMI in June shows that the sentiment of business actors is still quite optimistic, although it must be faced with the dynamics of the current world economic slowdown," he said.

Sri Mulyani's subordinate also said that the government and business actors remain committed to maintaining economic stability and a conducive business climate.

"This condition needs to be maintained to support the sustainability of positive trends of economic growth and the opening of employment in the short term," he stressed.

On the other hand, other positive indicators emerged from the inflation rate which decreased from 4.00 percent year on year (yoy) in May 2023 to 3.52 percent in June 2023.