BI Records Manufacturing Industry Performance Down In Quarter IV-2023

Bank Indonesia (Photo: Antara)

JAKARTA - The performance of the manufacturing industry or industry fell in the fourth quarter of 2023. As reflected in the Prompt Manufacturing Index of Bank Indonesia (PMI-BI) in the fourth quarter of 2023, it was recorded at 51.20 percent, or lower than the previous quarter of 52.93 percent.

However, the performance of the Business Field (LU) of the Processing Industry in the fourth quarter of 2023 remained strong and was still in the index expansion phase of more than 50 percent.

In a report published Thursday, January 18, 2024, based on PMI-BI-forming components, the volume of inventory of goods increased, while production volume and total volume of orders were still in the expansion phase.

The volume of inventory of finished goods continued the strengthening trend in the fourth quarter of 2023 by 54.22 percent or an increase compared to the previous quarter of 53.88 percent.

Meanwhile, the production volume was 52.19 percent, or slower than the previous quarter at 56.30 percent.

Then the total volume of input goods orders is 52.11 percent or slower when compared to the previous quarter at 54.15 percent.

However, there are still components in the contraction zone or index below 50 percent, such as the use of labor in the fourth quarter of 2023 was recorded at 48.57 percent or lower when compared to the previous quarter at 49.34 percent.

Then the speed of receipt of input orders was 49.24 percent, although it increased slightly compared to the previous quarter at 49.00 percent.

Executive Director of the BI Communication Department Erwin Haryono said that based on Sub-LU, the majority of sub-LUs are still in the expansion phase, with the highest index occurring in the transportation equipment industry, followed by the industrial machinery and equipment as well as the skin industry, leather goods, and footwear.

"The development of PMI-BI is in line with the development of LU activities in the manufacturing industry as a result of the Bank Indonesia Business Activity Survey (SKDU) which is also in the expansion phase, with a weighted net balance (SBT) value of 1.0 percent," he explained in his official statement Thursday, January 18.

Erwin said that in the first quarter of 2024, the performance of the LU processing industry as reflected in PMI-BI is estimated to increase with an index of 53.39 percent.

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

"The sub-LU majority is also predicted to be in the expansion phase, with the highest index in the skin, leather and footwear industries, followed by the wood industry, wood goods,MINAl and woven goods from bamboo, rattan and the like, as well as the tobacco processing industry," he concluded.