Indonesian Manufacturing PMI May 2023 Is Still Expansive, Above Malaysia To South Korea

Manufacturing Illustration (Photo: Doc. Antara)

JAKARTA - The results of the S&P Global survey show that Indonesia's Manufacturing Purchasing Managers Index (PMI) in May 2023, is at an expansion level, which is 50.3. The pace of manufacturing industry activities is supported by productivity that is still running because the supply of raw materials is maintained.

"We still have to be grateful because the condition of the manufacturing industry remains at the expansion level for 21 consecutive months. Despite the slowdown compared to last month, the condition of new demand and employment is still quite good," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a statement received in Jakarta, on Tuesday, June 6.

Indonesian manufacturing PMI in May was able to outperform Malaysian manufacturing PMI (47.8), Taiwan (44.3), Vietnam (45.3), South Korea (48.4), England (47.1), the Netherlands (44.2), Germany (43.2), France (45.7), and the United States (48.4). Even above the World Manufacturing PMI (49.6) and the European Zone (44.8).

Minister of Industry Agus said that the condition of the Indonesian economy is fairly capable of facing the dynamics of the global economy which continues to slow down.

"The global economic slowdown that has occurred since the end of 2022 has also had an impact on domestic consumer purchasing power," he said.

This situation also affects the value of the Industrial Trust Index (IKI) in May 2023, whose expansion has plunged slightly compared to the previous month. IKI in May was in 50.9th position. "It can be seen that the results of the manufacturing PMI are in line with the results of IKI which we released at the end of May yesterday," said Agus.

In order to restore the performance of the national manufacturing industry, the Minister of Industry emphasized that his party is focused on implementing optimization policies for local products through the program to Improve the Use of Domestic Products (P3DN).

"We will continue to run domestic demand through the P3DN program. Shopping for ministries/agencies and local governments will continue to be monitored, especially those who have had a large budget so far," he said.

Furthermore, Minister of Industry Agus asked manufacturing industry players to be able to take advantage of the potential expenditure of domestic products by ministries/agencies, central governments, local governments and SOEs in 2023, which is targeted at IDR 1,100 trillion.

"If domestic product demand continues to strengthen, we are optimistic that the pace of manufacturing PMI and IKI will soar again. In fact, the Ministry of Industry is also focused on implementing other strategic policies, such as industrial downstreaming," he concluded.