Indonesian Manufacturing PMI Down, Sri Mulyani Will Investigate More Deeply

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. ANTARA)

JAKARTA - S&P Global released data on Indonesia's manufacturing Purchasing Manager's Index (PMI) in July 2024 decreased to 49.3 or lower when compared to June 2024 at the level of 50.7.

Minister of Finance Sri Mulyani Indrawati said that several identified factors had triggered PMI to plummet so that it could be the government's step in formulating policies so that conditions would be good.

"Although PMI is corrective below 50, we are aware, we will look at the data. Then we formulate a policy so that the contraction period does not last long and can return. Of course, we hope that global environmentalization will improve. So that GDP until the end of the year can be maintained," he said.

Sri Mulyani said that the cause of PMI's first decline came from the demand side of moderated manufacturing goods. For the reason, whether it is due to seasonal factors or trade competition due to imported goods, the government will conduct further investigations

"We other ministries and ministries will support our instruments. The government will support it with various kinds of support. Especially if it is imported, it is an unhealthy trade competition, the government will take corrective steps. There is an anti- dumping PMK and sharing things." he explained.

Sri Mulyani said that regarding the weakening demand, because the economies of several countries have indeed shown weakening, such as the United States (US) and China.

"We still have hope for India, only if India may not be manufacturing goods. So our exports can be strong, but the manufactured goods measured in PMI do tend to manufacturing which is the traditional laboratories of Indonesian manufacturing such as textiles, footwear, so it may not reflect say that there are many manufacturers in Indonesia, especially downstream," he said.

Sri Mulyani hopes that the decline in manufacturing PMIs will only be temporary because if viewed through business trust from the PMI production process in July 2024, it will actually increase.

"This means that there is still optimism and this is what we will continue to explore. Manufacturing producers remain optimistic that their sales volume, in this case, production, will increase as market conditions are expected to strengthen next year. That provides hope so we hope that this PMI correction will be temporary," he concluded.