Ministry Of Finance: Manufacturing Expansion Strengthens Supported By Eid Momentum

Illustration (Photo: Doc. Yamaha)

JAKARTA - The Ministry of Finance (Kemenkeu) assessed that strengthening the manufacturing Purchasing Managers Index (PMI) to 52.7 in April from 51.9 in March was a positive signal in itself for the Indonesian economy.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said the torehan established Indonesia's manufacturing position in the expansionary route (more than level 50).

"The Indonesian Manufacturing Sector has consistently experienced expansion in 20 consecutive months until April 2023," he said in a press release released today, Wednesday, May 3.

According to Febrio, the strengthening of manufacturing PMIs is supported by high domestic demand.

"This condition is in line with the surge in demand during the National Religious Holidays (HBKN) of Ramadan and Eid al-Fitr," he said.

Febrio explained that the aggressiveness of production is reflected in the purchase of input goods to meet the public's demand.

"The increase in production is also marked by the increasing opening of employment opportunities," he said.

However, continued Febrio, along with the global economic slowdown, export demand is indicated to be still moderate.

In line with PMI Indonesia, PMI Manufacturing ASEAN countries such as Thailand and Myanmar also recorded an increase in April, namely at levels 60.4 and 57.4. Meanwhile, PMI Japan and Malaysia are still contracting at levels 49.5 and 48.8," he explained.

Overall, business sentiment in the manufacturing sector has continued to show strong and highest optimism since November 2022. Producers view the prospect of short-term growth as still relatively good to encourage the output of their production in the future.

"With this optimism, the development of sustainable demand growth needs to be maintained to support economic growth and provide a strong cushion in the face of the risks of global economic turmoil," closed Febrio.