Manufacturing PMI July 2024 Down To 49.3, Coordinating Minister Airlangga: Relatively Moderate

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Theresia Agatha/VOI)

JAKARTA - S&P Global has released Indonesia's manufacturing Purchasing Manager's Index (PMI) for July 2024, which is 49.3. This figure is down compared to June 2024 which is at 50.7.

Despite marginal, this position shows a contraction for the first time since August 2021 or after 34 consecutive months of expansion.

Coordinating Minister for Economic Affairs Airlangga Hartarto also opened his voice. Airlangga said that the PMI was relatively moderate compared to other countries.

"Then for PMI, we certainly see that compared to several countries, they are also relatively moderate, although we continue to encourage this optimism," said Airlangga at his office, Monday, August 5.

Airlangga considered that the decline in PMI was due to a decline in demand from several industrial sectors. One of them is the automotive industry.

"Some of our industries are over supply. We see the automotive industry dropping 11 percent, then exports also falling," he said.

Thus, Airlangga said that there is a need for the development of the automotive industry, mainly related to the Battery-Based Electrical Vehicle (EV) ecosystem in the country.

"Of course we will see related to the development of the EV industrial sector which needs infrastructure," he said.