Manufacturing PMIs That Are Still Expansive Evidence Of Optimism Of Business Actors Are Still Safeguarded

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) welcomes the achievements of Indonesian manufacturing Purchasing Managers (PMI) which remain at an expansive level at the close of 2022.

In fact, the Manufacturing PMI level last December was 50.9 higher than the November record of 50.3.

Head of the Fiscal Policy Agency (BKF) Febrio Kacaribu said, amid the global slowdown trend, national processing activities still recorded higher expansions. According to him, this result also continued an expansionary trend for sixteen consecutive months.

"The optimism of manufacturing industry players is indicated to be improving, as shown by the growth in supplies, both input and goods, ready to sell, to anticipate an increase in demand in the near future," he said in a press statement quoted on Wednesday, January 4.

Febrio explained that this condition was supported by strong domestic demand in line with the maintained pressure on inflation in the country, while export demand was still on hold.

"Although supply disruption is still happening, the price of input goods is starting to be indicated to decrease," he said.

The increase in manufacturing sector activity, continued Febrio, was also followed by an increase in job opening which was always in the expansion zone for six consecutive months.

Meanwhile, overall the optimism of business actors is still quite well maintained, although some respondents still anticipate the world's economic conditions and extreme weather which is considered to have the potential to hamper the distribution rate.

"Manufacturing activities that continue to be in the expansion zone indicate continued resilience and recovery amid a slowdown in manufacturing in various countries. This is an achievement that we need to maintain to maintain the momentum of recovery", concluded Sri Mulyani's subordinates.