Driven By Non-Aligned Cement And Galiards, The Industrial Processing Continues Expansive Phases

JAKARTA Bank Indonesia (BI) reports that the performance of the manufacturing sector in the third quarter of 2022 is indicated to remain strong and in the expansion phase.

BI Communication Department Director Junanto Herdiawan said this was reflected in the third quarter's Prompt Manufacturing Index (PMIBI) of 53.71 percent or was in the expansion phase (index more than 50 percent).

"This figure increased from 53.61 percent in the previous quarter," he said in a written statement on Thursday, October 13.

According to Junanto, this increase was driven by PMI-BI-forming components, especially production volume, finished goods inventory volume, and workforce.

He explained that there was an increase in the majority of sub-sectors, with the highest index on the cement sub-sector and non-metal excavation goods (58.91 percent), the basic metal sub-sector of iron and steel (56.62 percent), and the paper and printed goods sub-sector (55.63 percent).

"The development of PMI-BI is in line with the development of industrial activities in the processing sector as a result of the Bank Indonesia Business Activity Survey (SKDU) which was recorded positive and increased with the Weighted Net Balance (SBT) of 3.18 percent," he said.

Meanwhile, in the fourth quarter of 2022, the performance of the manufacturing sector is estimated to remain strong and in the expansion phase, although not as high as the previous quarter's performance.

He said, PMI-BI at the close of the year could be 53.18 percent, slightly lower than 53.71 percent in the third quarter of 2022.

"Several components such as total order volume, production volume, finished goods inventory volume, and input order receipt are estimated to be still in the expansion phase," he stressed.

Furthermore, a number of sub-sectors are expected to increase, especially the base metal sub-sector of iron and steel (58.54 percent) and fertilizers, chemicals and rubber goods (52.37 percent). Meanwhile, the transportation, machinery and equipment sub-sector (49.63 percent) was recorded to have contracted.