The Government Of The Republic Of Indonesia Takes Care Of Manufacturing PMIs To Maintain Economic Growth Above 5 Percent

Illustration. (Photo: Doc. Antara)

JAKARTA - The government is committed to maintaining manufacturing Purchasing Managers' Index (PMI) in order to achieve economic growth above five percent by 2024.

"The government is committed to continuing to encourage economic growth through the contribution of the manufacturing sector, especially those oriented to exports, so that we can remain optimistic to achieve growth of more than five percent in 2024," said Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu in Jakarta, quoted from Antara, Tuesday 4 June.

Indonesian manufacturing PMI in May 2024 was recorded at the level of 52.1, slightly slower than April 2024 with a level of 52.9.

Even so, Indonesia's manufacturing performance in May 2024 will maintain an expansion record for 33 consecutive months, in line with the government's efforts to maintain purchasing power through various fiscal policies.

According to Febrio, Indonesia's manufacturing performance is supported by maintained production output and domestic demand levels.

Several Indonesian trading partner countries also recorded expansive manufacturing activities, such as China (51.7) and India (58.4).

Several neighboring countries in ASEAN areas such as Vietnam and Myanmar also recorded expansive manufacturing activities, each at levels 50.3 and 52.1. On the other hand, the European PMI is still in the contraction zone at the level of 47.4.

Meanwhile, Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif stated that his party anticipates the impact of the Minister of Trade Regulation (Permendag) Number 8 of 2024 concerning the Third Amendment to Permendag No. 36/2023 concerning Policy and Import Regulation on production activities that are suspected of affecting the slowdown in the performance of manufacturing PMIs.

The Ministry of Industry will continue to strive so that Permendag 8/2024 does not bring deeper negative sentiment to manufacturing industry players in Indonesia, so that next month's PMI will not experience a decline.