Indonesia's Manufacturing Purchasing Managers' Index (PMI) in April 2022 was at the level of 51.9 from 51.3 in the previous month. This is considered to support the performance of Indonesia's economic growth. "Together with the strengthening of the export contribution, the increase in manufacturing PMI is also believed to be able to support the solid performance of national economic growth in the second quarter of 2022," said Industry Minister Agus Gumiwang Kartasasmita, quoted from Antara, Saturday (7/5/2022). S&P Global, Indonesia's manufacturing industry sector continued to expand at a faster pace in April. This accelerated the improvement in economic conditions as well as boosted the number of workers and purchasing activity. "So, this PMI result represents an improvement in business conditions for all manufacturing sectors in Indonesia. Indonesia for eight months in a row, with the fastest rate of improvement since last January," he said. In fact, in general, business players in the manufacturing industry in Indonesia are still optimistic about the pace of expansion in the next period.
This is also supported by strengthening public consumption and demand for exports, which are expected to remain on a positive trend in the future. "It is hoped that the sustainability of increasing production capacity in the manufacturing industry sector can be maintained, as it is supported by the strengthening of demand during the month of Ramadan and Eid al-Fitr, which is in line with the policy of joint leave and Lebaran homecoming," said Agus. The Minister of Industry added that according to President Joko Widodo's direction, capital expenditures and services must be directed to domestic products. The potential for goods and capital expenditures as well as services in the central government is IDR 526 trillion, while in regional governments it is IDR 535 trillion. "That is, a total of more than IDR 1,000 trillion. Meanwhile, the budget for SOEs is IDR 420 trillion. All of these figures are very large, which needs to be spurred on to purchase domestic products so that our industry can grow and develop. So, don't eliminate or reduce as much as possible for the purchase of imported products," he explained. Next, accelerate the downstream industrial process carried out in the country.
Areas that have mineral resources are encouraged to immediately build smelters. "In addition, regions that produce chocolate or coffee, for example, are encouraged to increase their added value through industrial downstreaming because it will also be able to create large job opportunities," he added. Responding to the results of the Indonesian manufacturing PMI survey in April, Jingyi Pan as Economics Associate Director IHS Markit said the improvement in Indonesia's economic conditions was evident from the increase in demand and production in the manufacturing sector which was getting stronger. "In addition, there was an increase in purchasing activity, and most importantly the solid expansion in the number of workers who also continued to show confidence from several companies in the near future. close," he explained. Indonesia's manufacturing PMI in April was able to surpass the manufacturing PMI of China (46.0), Russia (48.2), Malaysia (51.6), Taiwan (51.7), and Vietnam (51.7).
