Bank Indonesia Reveals Manufacturing Expansion Remains Maintained

Illustration (Photo: Doc Antara)

JAKARTA - Bank Indonesia (BI) revealed that the performance of the Manufacturing Industry Business Field (LU) in the third quarter of 2024 remained stable and was in the expansion phase, as reflected in the Prompt Manufacturing Index-BI (PMI-BI) in the third quarter of 2024 of 51.54 percent.

However, it is lower when compared to the previous quarter at 51.97 percent.

For information, if the Index is above 50, it indicates that the manufacturing industry is in the expansion phase.

Executive Director of the BI Communication Department Ramdan Denny Prakoso said that based on its constituent components, some components are in the expansion phase with the highest index in the Volume of Finished Goods Inventory, followed by Production Volume and Total Order Volume.

"The Speed ​​of Receipt of Ordered Input Goods and Use of Labor components recorded a contraction," he explained in his statement, Thursday, October 17.

Ramdan said, based on Sub-Business Fields (Sub-LU), most Sub-LU are in the expansion phase and support PMI-BI performance, with the highest index in the Tobacco Processing Industry followed by the Non-Metallic Mining Industry, and the Machinery and Equipment Industry.

This development is in line with the performance of the LU Processing Industry activities based on the results of the Bank Indonesia Business Activity Survey (SKDU) which continues to grow with a Weighted Net Balance (WNB) value of 1.38 percent.

He said that in the fourth quarter of 2024, the performance of the Manufacturing Industry LU is predicted to remain stable, as reflected in the PMI-BI of 51.13 percent.

According to him, if based on the components that form it, most components are predicted to be in the expansion phase with the highest index in the Production Volume component, followed by Total Order Volume and Finished Goods Inventory Volume.

"The majority of Sub-LU are also predicted to be in the expansion phase, with the highest index in the Machinery and Equipment Industry, followed by the Non-Metallic Mining Industry and the Rubber, Rubber and Plastic Goods Industry," he concluded.