Great Start Of The Year! The Roar Of The Processing Industry Is Getting Louder At The Expansion Level

Illustration (Photo: Doc. Sritex)

JAKARTA - Bank Indonesia (BI) said that the performance of the manufacturing sector in the first quarter of 2022 indicated an increase and was in the expansion phase.

This was stated by the Head of the Communications Department (BI) Erwin Haryono in a report released today.

According to him, Bank Indonesia's Prompt Manufacturing Index (PMI-BI) was 51.77 percent or higher than 50.17 percent in the fourth quarter of 2021. For information, a level above 50 percent indicates that the industry's performance is in the expansion category.

"The increase occurred in all components that make up the PMI-BI, with the highest indexes in the components of total order volume, production volume, and finished goods inventory volume," he said on Thursday, April 14.

Erwin detailed, based on sub-sectors, the increase occurred in paper and printed goods (56.36 percent), food, beverages and tobacco sub-sectors (53.47 percent), and textiles, leather goods and footwear (53.29 percent).

Then, the PMI-BI development was in line with the development of manufacturing sector activities resulting from the positive Business Activity Survey (SKDU) and an increase with a Weighted Net Balance (WNB) of 0.84 percent.

"The increase in the performance of the manufacturing sector is estimated to continue in the second quarter of 2022 to 56.06 percent," he said.

Meanwhile, the increase in PMI-BI was driven by all of its constituent components, especially production volume, followed by total order volume, finished goods inventory volume, and number of employees.

"The majority of the sub-sectors are expected to increase, including food, beverages and tobacco, paper and printed goods, as well as the textile, leather goods and footwear sub-sectors," Erwin concluded.