The Minister Of Industry Emphasized The Importance Of Policy Synergy To Restore The Value Of Indonesian PMI

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita emphasized the importance of policy synergy between ministries and institutions to restore the value of Indonesia's manufacturing Purchasing Manager (PMI), which in July 2024 contracted to 49.3 points.

"The Ministry of Industry cannot do this alone in this regard. Maintaining the performance of the manufacturing sector, not only to maintain that added value remains generated domestically, but also to protect the availability of employment opportunities for the Indonesian people," said Minister of Industry Agus in Jakarta, quoted from Antara, Thursday, August 1.

He explained that the PMI figure in July which fell 1.4 points on a monthly basis (month to month) was due to the import relaxation policy that was enforced.

According to him, in a row the manufacturing PMI in May-July 2024 continued to decline when compared to the manufacturing PMI in April 2024 which was before the implementation of the import relaxation, with a value of April reaching 52.9, then down to 52.1 in May, then to 50.7 in June, and down again 49.3 in July.

"The position of the manufacturing sector is very difficult because global conditions, including logistics, are very unfavorable for this sector. Therefore, ministers should not issue policies that are actually killing the industry," he said.

Di sisi lain, Direktur Ekonomi S&P Global Market Intelligence Paul Smith yang merilis PMI manufacturing menyampaikan pelematan pasar secara umum mendorong penurunan marginal pada kondisi peneroperasi selama bulan Juli, dengan permintaan baru dikuran dan produksi turun untuk pertama kali dalam dua tahun.

This makes producers more vigilant by slightly reducing purchasing activities, and his party noted that labor has decreased quite high since September 2021.

However, according to him, there is hope that the manufacturing sector will soon return to growth and rise.

"There is hope that the sector will soon return to growth, with the company very confident since February amid hopes that sales and market conditions will improve in the coming year," he said.