Ministry Of Finance Concerning Manufacturing PMI Reduction: Global Risk Alert

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) conveyed that the view regarding the records of Indonesia's manufacturing PMI for the October 2022 period was still in the expansion zone at the level of 51.8. This figure has decreased from September 2022 which was 53.7.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that this expansionary manufacturing activity shows a strong trend of domestic demand and exports.

"Of course we should be grateful for this because it occurs amidst global risks that are still escalative and we need to be aware of," he said in an official statement on Wednesday, November 2.

According to Febrio, the achievement of the manufacturing PMI moncer is claimed to be the result of the government's policy to reduce global risk (shock absorber) which has proven effective in maintaining the momentum of strengthening and restoring the national economy.

"The government continues to optimize the state budget as a driver of public demand to support optimism in the business sector," he said.

Sri Mulyani's subordinate then compared Indonesia's condition with several friendly countries which also experienced pressure on the manufacturing sector, such as Thailand 51.6 (September 55.7), Vietnam 50.6 (September 52.5), Australia 52.7 (September 53.5), and Japan 50.7 (September 50.8).

Meanwhile, manufacturing PMIs in several countries have contracted again, including Malaysia 48.7, Taiwan 41.5, and South Korea 48.2.

"The strong level of domestic demand is expected to be the basis for the manufacturing sector to continue to consistently be in the expansion zone and strengthen in the future," he stressed.

Febrio also revealed that the government and related authorities will anticipate various global risks that will affect the trade balance and economy in general.

"We continue to monitor the slowing development of international trade activity in developed countries which are affected by inflation, as well as major trading partners like China," he stressed.