BI: Performance Of The Processing Industry Increases In The Third Quarter Of 2023

Illustration (Photo: Doc. Antara)

JAKARTA - Executive Director of the Communication Department of Bank Indonesia (BI) Erwin Haryono said the performance of the manufacturing industry (LU) in the third quarter of 2023 increased and was in the expansion phase.

This development is reflected in the Prompt Manufacturing Index of Bank Indonesia (PMI-BI) in the third quarter of 2023 of 52.93 percent, higher than 52.39 percent in the previous quarter.

Erwin said, the increase occurred in several components forming PMI-BI, especially the production volume and volume of finished goods supplies, while the total volume of orders remained in the expansion phase.

Based on the business subfield, the increase occurred in the majority of sub-business fields, with the highest index occurring in the transportation equipment industry, the machinery and equipment industry, as well as the non-metal excavation goods industry.

According to Erwin, the development of PMI-BI is in line with the development of LU activities in the business activity processing industry (SKDU) of Bank Indonesia which is also in the expansion phase, with a weighted net balance value (SBT) of 2.81 percent.

In the fourth quarter of 2023, the performance of the LU processing industry as reflected in PMI-BI is estimated to remain strong with an index of 52.25 percent and still in the expansion phase.

Based on its constituents, the majority of components are predicted to be in the expansion phase with the highest index on the production volume component, followed by the volume of finished goods inventory and the total volume of orders.

The majority of business sub-fields are also expected to be in an expansion phase, with the highest index in the skin industry, skin and footwear goods, followed by the transportation equipment industry and the non-metal excavation industry.