Manufacturing PMIs That Stay Expansive Strengthen Optimism For Inflation Control Ahead Of Ramadan

Illustration (Photo: Doc. Antara)

The Ministry of Finance (Kemenkeu) responded positively to the performance of the manufacturing sector which was able to survive in the expansion line with the achievement of the 51.2 Manufacturing Purchasing Managers' Index (PMI) in February, although it decreased slightly from the January level of 51.3.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said the score extended consistency in expansion for 18 consecutive months.

"The national manufacturing sector's resilience is driven by continued expansionary domestic demand," he said in a written statement quoted on Thursday, March 2.

According to Febrio, the supply chain has also improved in terms of shorter delivery times due to increasingly efficient logistics performance.

"This expansion of the manufacturing sector encourages more employment," he said.

Febrio explained that input purchase activities were recorded at the level of 52.8 or higher than the previous month which was at the level of 52.3. Export demand also increased even though it was still in the contraction zone due to global economic conditions.

"Overall, the Indonesian manufacturing sector still maintains optimistic business sentiment but remains vigilant against the dynamics of the global economy," he stressed.

In the future, continued Febrio, the government will continue to strive to control inflation in line with the entry of the momentum of Ramadan and the Eid holiday.

"The synergy of controlling inflation continues to be strengthened through various policies of the Central Inflation Control Team (TPIP)," he said.

"The Government's commitment to maintain inflation in 2023 in the target range of 3 percent plus minus 1 percent is strengthened by maintaining the target of food inflation in the range of 3-5 percent, especially during religious and national holidays," concluded Head of BKF Febrio Kacaribu.