These Are 4 Industry Contributing PMI Manufacturing RI Contractions

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

JAKARTA - Indonesia's Manufacturing Purchasing Manager Index (PMI) in July 2024 dropped to 49.3 or decreased by 1.4 points compared to the previous month.

Finance Minister Sri Mulyani Indrawati said that there are several industries that need to be encouraged from the manufacturing sector, namely the textile and textile product (TPT) industry, which contracted 0.0 percent, the machinery and equipment industry which contracted 1.8 percent, the footwear industry only grew 1.9 percent, and the rubber industry 2.1 percent.

According to Sri Mulyani four, the manufacturing industry describes a manufacturing area that is experiencing pressure, especially because there is an import competition.

"This is an industry that has attracted a lot of attention, is injured, affected by many things. Maybe the demand is still adequate but because there is competition from imports," he wrote, Wednesday, August 14.

Therefore, Sri Mulyani hopes that the relevant ministers will take steps to overcome problems with anti-dumping or import duties to protect the domestic industry.

"The steps will be released in the form of a Minister of Finance Regulation, such as import duties or tariffs or others," he explained.

Sri Mulyani said that as part of the national policy mix, the government will also restore industrial performance and create healthy competition, including import duties, security measures, tax allowances, and tax holidays.

However, Sri Mulyani said that there are several manufacturing sectors that are growing, namely, the food and beverage industry grew 5.5 percent, the pharmaceutical chemical industry grew 8 percent, and the basic metal industry grew 18.1 percent.