Indonesia Prints Manufacturing PMI Record: Malaysia, Vietnam to South Korea and Japan Pass

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) reports that the Indonesian Manufacturing Purchasing Manager's Index (PMI) in the September 2022 period recorded an increase to 53.7 from the previous 51.7 last August.

The Minister of Industry (Menperin), Agus Gumiwang Kartasasmita, said the slick score was obtained thanks to increased production and expansion of new domestic demand.

"This result shows that the expansion rate of Indonesia's manufacturing sector in the last month period was the fastest in eight months and solid overall", he said in a written statement on Monday, October 3.

According to the Minister of Industry, at the ASEAN level, Indonesia also showed the strongest improvement in the health of the manufacturing sector, in line with improving conditions in all regional areas.

In his notes, Indonesia's Manufacturing PMI last month surpassed the World Manufacturing PMI (50.3), ASEAN (53.5), Malaysia (49.1), Vietnam (52.5), and the Philippines (52.9). higher than China (48.1), Japan (50.8), and South Korea (47.6).

“Indonesia's Manufacturing PMI which increased again in September shows the performance of the industrial sector is getting better and shows stable development. In this case, production activity plays an important role in increasing the index, which is supported by increased demand, especially from within the country", he said.

The Minister of Industry added that the increase in production can be seen in the electronics industry, the non-metallic mineral industry, as well as the machinery and equipment industry.

It was stated that in the electronics industry, the increase mainly occurred in the production of laptop products to meet the demand for realization of government spending and the central government which required the purchase of Domestic Products (PDN).

Furthermore, the increase in industrial production of non-metallic minerals which include cement, ceramics, and glass products is influenced by the increasing demand for infrastructure development needs by the government, as well as property by developers.

"In addition, there is also government spending that is channeled to the community in the form of social assistance", he said.

National Moncer performance seems to be inversely proportional to global conditions. The Minister of Industry revealed that there was a decline in foreign demand for Indonesian companies due to economic pressures experienced by destination countries, such as China, the United States, and Europe. As a result, the export value of several manufactured products has become less than optimal even though CPO exports have returned to normal.