JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita said that the Indonesian Manufacturing Purchasing Managers' Index (PMI) decreased from 53, 7 to 51.8 in October 2022.
According to Agus, the decline in PMI is in line with the slowing global economic conditions. Because, PMI many industrial countries also weakened.
"Last month, Indonesia 53.7, this morning I received news in October 51.8. We are still grateful, we are still expansive, and we feel this expansive level for 14 consecutive months," he said at the Link and Match IKM event. Automotive Component with APM suppliers in Jakarta, Tuesday, November 1.
Agus said that the level above 50 shows that the manufacturing sector in Indonesia is still classified as expansive.
In contrast, levels below 50 show that the manufacturing industry is under pressure or contracting.
Despite the decline, the Minister of Industry said that Indonesia's achievements were still much higher than global industrial countries and ASEAN.
"Large countries such as China, Europe, South Korea, and Taiwan are now the PMIs are below 50," added Agus.
Citing data from Bloomberg, Taiwan's S&P Global Manufacturing fell to 41.5 from 42.2. Followed by Japan's Manufacturing weakened to 50.7 from 50.8.
South Korean PMI is known to have increased, although it is still at the contraction level of 48.2 from 47.3 months ago.
Meanwhile, Thai manufacturing activity experienced a significant decline from 51.6 to 55.7 percent. As for China and Australia, which also experienced a decline.
Agus said, to be able to keep the growth of the manufacturing sector expansionary, the government is trying to continue to maintain industrial demand (demand).
"That later must be assisted by the government with various policies, starting from incentives and stimulus. Later, we will study it, we will review it, to help the industry so that it does not experience a slowdown in its manufacturing," he said.
The Minister of Industry said that the Manufacturing PMI must be maintained so that it remains above level 51 until the end of 2022.
"We hope to stay healthy, any point above 51. (Although) above 50 is still expansionary, but we are pushing or trying above," concluded Agus.
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